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<p>This study examines how the five Dynamic Service Innovation Capabilities (DSICs) (sensing user needs, sensing technological options, conceptualizing, coproducing and orchestrating, and scaling and stretching) jointly impact on firm performance. Using survey data, from 318 small and medium-sized enterprises in the technology-intensive hub of Shanghai and its surrounding area of China, partial least squares structural equation modeling (PLS-SEM) was applied for analysis. The results confirm that DSICs have significant interactive (complementary and substitutional) and bounded (non-linear) effects on market and financial outcomes. The findings show DSICs indeed operate as an integrated capability system whose balance and optimal intensity determine firm performance. The study advances dynamic capabilities theory and offers managerial guidance for designing balanced service innovation portfolios.</p>

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Beyond complementarity: interactive and bounded effects of dynamic service innovation capabilities on firm performance

  • 期刊论文

  • 发表日期：

    2025年12月4日

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  • Jun Zhan,
  • Shun Zhang,
  • Silvana Trimi,
  • Duong Thuy Pham

摘要

This study examines how the five Dynamic Service Innovation Capabilities (DSICs) (sensing user needs, sensing technological options, conceptualizing, coproducing and orchestrating, and scaling and stretching) jointly impact on firm performance. Using survey data, from 318 small and medium-sized enterprises in the technology-intensive hub of Shanghai and its surrounding area of China, partial least squares structural equation modeling (PLS-SEM) was applied for analysis. The results confirm that DSICs have significant interactive (complementary and substitutional) and bounded (non-linear) effects on market and financial outcomes. The findings show DSICs indeed operate as an integrated capability system whose balance and optimal intensity determine firm performance. The study advances dynamic capabilities theory and offers managerial guidance for designing balanced service innovation portfolios.