Dynamic service innovation capability, radical service innovation and open business models

Abstract

While researchers agree that dynamic capabilities offer firms the skills and abilities to deploy and utilise various resources, the relationship between dynamic service innovation capability and radical service innovation remains unclear. With the influence of an open business model, the relationship becomes more complicated. The results analyses of data provided by 209 senior managers from their respective firms, indicates that dynamic service innovation capability has an inverted U-shaped relationship with radical service innovation. In addition, a substantially more open business model strengthens the positive effects of dynamic service innovation capability on radical service innovation.

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