Co-production of service innovations through dynamic capability enhancement |
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| Authors: | Ja-Shen Chen Don Kerr Seng-Su Tsang Yu Chieh Sung |
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| Affiliation: | 1. College of Management, Yuan Ze University, Taoyuan, Taiwanjchen@saturn.yzu.edu.tw;3. Faculty of Arts and Business, University of the Sunshine Coast, Sippy Downs, Queensland, Australia;4. Department of Business Administration, National Taiwan University of Science and Technology, Taipei, Taiwan;5. College of Management, Yuan Ze University, Taoyuan, Taiwan |
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| Abstract: | The main aim of this paper is to investigate the effect of co-production practices with customers on service innovation. Specifically, we sought to determine whether dynamic capabilities (the specific abilities a company has to shape, reshape, configure, and reconfigure idiosyncratic assets to respond to changing technologies and markets) could mediate the effect of co-production on service innovation. In this paper, we examine the factors that could influence co-production practices and determine whether organizational commitment moderates the effect of co-production practice on an organization's dynamic capabilities. Using a survey approach of Taiwanese firms, we showed that dynamic capability fully mediates the effects of co-production practice on service innovation and that market orientation and customer matching have a significant influence on co-production practices. In addition, this study has empirically demonstrated that service firms would be well advised to engage in developing service innovation through enhancing their own dynamic capabilities. |
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| Keywords: | co-production dynamic capability service innovation organizational commitment |
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