Dynamic Capabilities for Managing Service Innovation: Towards a Conceptual Framework

Despite widespread acknowledgement of the importance of service innovations and the capabilities that enable them, there is a paucity of management frameworks that provide practical guidance to firms (Gryszkiewicz et al., 2013). Literature is often vague, fragmented, or employs diverse approaches and definitions, which has resulted in significant confusion and extensive knowledge gaps (Walsh et al., 2009; den Hertog et al., 2010). Drawing from relevant research this paper delineates service innovation capability as a higher order, multi-dimensional construct and proposes a unified framework for its management consisting of four dynamic capabilities. This conceptual model enhances collective understanding of the discipline and directs the attention of firms to behaviours most critical to the continuous creation of service innovations.