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The contingent impacts of dynamic service innovation capabilities on firm performance

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Abstract

This paper analyzes the impact of dynamic service innovation capabilities (DSICs) on organizational performance of service enterprises based on firms’ external and internal contingencies. The study is based on the data from 676 small and medium business-to-business service firms in China. The results revealed significant positive effects of DSICs on firms’ financial and market performance, while confirming that the performance effect of DSICs is contingent on organizational structure and competitive intensity. The study results provide valuable insights to both researchers in the service innovation field and practicing managers who make strategic decisions on allocating resources for sustainable growth of service firms.

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The data will be available upon acceptable and reasonable request to the corresponding author.

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Acknowledgements

This research is a project sponsored by The National Social Science Fund of China (Project No.13BGL025). The authors wish to acknowledge the companies which cooperated with the questionnaire and provided the assessment through the research project. Any errors from this paper are the sole responsibility of the authors. The authors are grateful to the Shanghai municipal, Zhejiang and Jiangsu provincial government departments for their assistance in data collection.

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Correspondence to Shun Zhang.

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Appendix

Appendix

Results from confirmatory tetrad analysis (CTA-PLS) for DSICs

Model implied non-redundant vanishing tetrad

Original sample Estimate (O)

Sample mean Estimate (M)

Standard deviation (STDEV)

Bootstrap estimated Standard error

T-value (|O/se|)

Bias

Confidence Interval low

Confidence Interval up

Bonferroni adjustment alpha

Z(1-alpha)

Adjusted confidence interval low

Adjusted confidence interval up

CO1,CO2,CP1,CP2

0.094

0.094

0.011

0.011

8.595

0

0.073

0.116

0.001

3.435

0.057

0.132

CO1,CO2,CP2,CP1

0.093

0.093

0.011

0.011

8.562

0

0.072

0.115

0.001

3.435

0.056

0.131

CO1,CO2,CP1,CP3

0.101

0.1

0.011

0.011

9.571

0

0.08

0.121

0.001

3.435

0.064

0.137

CO1,CP1,CP3,CO2

0

0

0.002

0.002

0.199

0

− 0.004

0.003

0.001

3.435

− 0.007

0.006

CO1,CO2,CP1,SS1

0.047

0.047

0.007

0.007

6.392

0

0.033

0.062

0.001

3.435

0.022

0.072

CO1,CO2,CP1,SS2

0.045

0.044

0.007

0.007

6.341

− 0.001

0.031

0.059

0.001

3.435

0.021

0.07

CO1,CO2,CP1,SS3

0.058

0.057

0.008

0.008

7.435

0

0.043

0.073

0.001

3.435

0.031

0.085

CO1,CO2,ST1,CP1

0.04

0.039

0.008

0.008

5.129

0

0.025

0.055

0.001

3.435

0.014

0.067

CO1,CO2,ST2,CP1

0.064

0.063

0.009

0.009

6.921

− 0.001

0.046

0.083

0.001

3.435

0.033

0.096

CO1,CP1,ST3,CO2

− 0.001

− 0.001

0.003

0.003

0.38

0

− 0.007

0.005

0.001

3.435

− 0.011

0.009

CO1,CP1,SU1,CO2

− 0.002

− 0.002

0.002

0.002

0.891

0

− 0.007

0.003

0.001

3.435

− 0.01

0.006

CO1,CO2,CP1,SU3

0.038

0.039

0.008

0.008

5.122

0

0.024

0.053

0.001

3.435

0.012

0.064

CO1,CP2,SS2,CO2

− 0.001

− 0.001

0.003

0.003

0.32

0

− 0.006

0.004

0.001

3.435

− 0.01

0.008

CO1,CO2,CP2,ST3

0.033

0.033

0.007

0.007

4.402

0

0.018

0.048

0.001

3.435

0.007

0.059

CO1,CO2,SU1,CP2

0.038

0.038

0.007

0.007

5.048

0

0.023

0.052

0.001

3.435

0.012

0.063

CO1,CO2,CP2,SU2

0.036

0.037

0.008

0.008

4.535

0

0.02

0.052

0.001

3.435

0.008

0.063

CO1,CO2,SU2,CP2

0.034

0.035

0.008

0.008

4.362

0

0.019

0.05

0.001

3.435

0.007

0.061

CO1,CO2,SU3,CP2

0.041

0.041

0.009

0.009

4.682

0

0.023

0.058

0.001

3.435

0.01

0.07

CO1,CP3,SS1,CO2

− 0.001

− 0.001

0.002

0.002

0.464

0

− 0.006

0.003

0.001

3.435

− 0.009

0.007

CO1,CP3,ST2,CO2

− 0.004

− 0.004

0.003

0.003

1.239

0

− 0.01

0.002

0.001

3.435

− 0.015

0.007

CO1,CO2,SS2,SS1

0.088

0.087

0.01

0.01

8.996

0

0.069

0.107

0.001

3.435

0.054

0.121

CO1,CO2,ST1,SS1

0.038

0.037

0.008

0.008

4.93

− 0.001

0.024

0.054

0.001

3.435

0.012

0.065

CO1,CO2,SS1,ST2

0.054

0.054

0.009

0.009

6.204

0

0.037

0.072

0.001

3.435

0.024

0.085

CO1,CO2,ST3,SS1

0.043

0.043

0.008

0.008

5.17

0

0.027

0.06

0.001

3.435

0.015

0.072

CO1,SS1,SU3,CO2

− 0.002

− 0.002

0.003

0.003

0.851

0

− 0.007

0.003

0.001

3.435

− 0.011

0.007

CO1,CO2,SS2,ST2

0.06

0.06

0.009

0.009

6.652

0

0.042

0.078

0.001

3.435

0.029

0.091

CO1,CO2,SU3,SS2

0.041

0.041

0.007

0.007

5.511

0

0.027

0.056

0.001

3.435

0.016

0.067

CO1,SS3,ST3,CO2

0.003

0.002

0.003

0.003

0.779

0

− 0.004

0.009

0.001

3.435

− 0.009

0.014

CO1,CO2,SU1,SS3

0.049

0.049

0.008

0.008

6.385

0

0.034

0.064

0.001

3.435

0.023

0.075

CO1,CO2,SU1,ST1

0.033

0.033

0.007

0.007

4.403

0

0.018

0.048

0.001

3.435

0.007

0.059

CO1,CO2,ST1,SU2

0.043

0.042

0.009

0.009

4.955

0

0.026

0.06

0.001

3.435

0.014

0.073

CO1,CO2,ST1,SU3

0.041

0.041

0.009

0.009

4.518

0

0.023

0.06

0.001

3.435

0.01

0.073

CO1,CO2,SU2,ST2

0.054

0.054

0.009

0.009

5.91

0

0.037

0.072

0.001

3.435

0.023

0.086

CO1,CO2,SU3,ST2

0.052

0.052

0.01

0.01

5.249

0

0.032

0.072

0.001

3.435

0.018

0.086

CO1,CO2,ST3,SU1

0.023

0.023

0.007

0.007

3.282

0

0.009

0.037

0.001

3.435

− 0.001

0.048

CO1,CO2,SU3,SU1

0.085

0.085

0.012

0.012

7.165

0

0.062

0.109

0.001

3.435

0.045

0.127

CO1,CP1,ST3,CP3

− 0.019

− 0.019

0.006

0.006

3.342

0

− 0.031

− 0.008

0.001

3.435

− 0.039

0

CO1,CP3,SU1,CP1

− 0.02

− 0.02

0.005

0.005

4.433

0

− 0.029

− 0.011

0.001

3.435

− 0.036

− 0.005

CO1,CP1,SU3,SS1

0

0

0.004

0.004

0.091

0

− 0.007

0.007

0.001

3.435

− 0.012

0.012

CO1,CP1,ST1,SS2

0

0

0.004

0.004

0.02

0

− 0.007

0.008

0.001

3.435

− 0.013

0.013

CO1,SS2,ST3,CP1

− 0.001

0

0.004

0.004

0.134

0

− 0.008

0.007

0.001

3.435

− 0.014

0.013

CO1,CP1,SS3,ST1

− 0.001

− 0.001

0.004

0.004

0.23

0

− 0.008

0.006

0.001

3.435

− 0.013

0.012

CO1,CP1,SS3,ST3

0.001

0.001

0.004

0.004

0.356

0

− 0.006

0.009

0.001

3.435

− 0.011

0.014

CO1,ST1,SU2,CP1

− 0.003

− 0.003

0.003

0.003

1.043

0

− 0.01

0.003

0.001

3.435

− 0.015

0.008

CO1,CP1,ST2,SU1

− 0.001

− 0.001

0.003

0.003

0.186

0

− 0.007

0.006

0.001

3.435

− 0.012

0.011

CO1,CP2,SS1,CP3

− 0.023

− 0.023

0.005

0.005

4.721

0

− 0.033

− 0.013

0.001

3.435

− 0.04

− 0.006

CO1,CP2,SS1,SS2

0.01

0.01

0.004

0.004

2.303

0

0.002

0.019

0.001

3.435

− 0.005

0.025

CO1,CP2,SS2,ST3

0.001

0.001

0.003

0.003

0.365

0

− 0.005

0.008

0.001

3.435

− 0.01

0.013

CO1,CP2,SU3,SS3

− 0.001

− 0.001

0.004

0.004

0.317

0

− 0.009

0.007

0.001

3.435

− 0.015

0.013

CO1,CP2,ST1,ST3

0.023

0.023

0.007

0.007

3.545

0

0.011

0.037

0.001

3.435

0.001

0.047

CO1,CP2,SU3,ST1

− 0.001

− 0.001

0.004

0.004

0.216

0

− 0.008

0.006

0.001

3.435

− 0.013

0.012

CO1,SS2,SU1,CP3

0.002

0.002

0.004

0.004

0.446

0

− 0.006

0.009

0.001

3.435

− 0.011

0.014

CO1,CP3,SS3,ST1

− 0.004

− 0.004

0.004

0.004

1.02

0

− 0.011

0.004

0.001

3.435

− 0.017

0.01

CO1,CP3,SS3,ST2

− 0.008

− 0.008

0.005

0.005

1.709

0

− 0.017

0.001

0.001

3.435

− 0.023

0.008

CO1,CP3,ST3,SS3

− 0.004

− 0.004

0.004

0.004

0.925

0

− 0.012

0.005

0.001

3.435

− 0.018

0.011

CO1,CP3,SS3,SU1

− 0.003

− 0.003

0.003

0.003

0.915

0

− 0.009

0.004

0.001

3.435

− 0.014

0.009

CO1,CP3,SU2,SS3

− 0.005

− 0.006

0.004

0.004

1.391

0

− 0.013

0.002

0.001

3.435

− 0.018

0.008

CO1,SU1,SU2,CP3

− 0.003

− 0.003

0.002

0.002

1.447

0

− 0.006

0.001

0.001

3.435

− 0.009

0.004

CO1,SS1,SU3,SS3

− 0.014

− 0.014

0.005

0.005

2.973

0

− 0.023

− 0.005

0.001

3.435

− 0.03

0.002

CO1,ST3,SU2,SS1

− 0.001

− 0.001

0.004

0.004

0.392

0

− 0.008

0.006

0.001

3.435

− 0.014

0.011

CO1,SS2,ST1,SU1

− 0.001

− 0.001

0.004

0.004

0.217

0

− 0.008

0.007

0.001

3.435

− 0.014

0.012

CO1,SS3,ST2,ST1

0.038

0.038

0.007

0.007

5.664

0

0.024

0.05

0.001

3.435

0.015

0.06

CO1,SS3,ST1,SU3

− 0.001

− 0.001

0.004

0.004

0.254

0

− 0.01

0.008

0.001

3.435

− 0.016

0.014

CO1,ST1,ST3,ST2

− 0.006

− 0.005

0.007

0.007

0.879

0

− 0.019

0.007

0.001

3.435

− 0.029

0.016

CO1,ST3,SU2,SU1

0.02

0.02

0.006

0.006

3.587

0

0.009

0.032

0.001

3.435

0.001

0.04

CO2,CP1,SU2,SU3

0.019

0.019

0.005

0.005

3.621

0

0.009

0.03

0.001

3.435

0.001

0.038

CO2,SS2,SU1,SS3

− 0.011

− 0.01

0.005

0.005

2.05

0

− 0.022

− 0.001

0.001

3.435

− 0.03

0.007

CO2,ST1,SU1,SS2

0

0

0.004

0.004

0.091

0

− 0.008

0.007

0.001

3.435

− 0.014

0.013

CO2,SS2,ST1,SU2

0.005

0.005

0.004

0.004

1.336

0

− 0.002

0.012

0.001

3.435

− 0.007

0.017

CO2,ST2,SU1,ST1

− 0.029

− 0.028

0.007

0.007

4.002

0

− 0.043

− 0.015

0.001

3.435

− 0.054

− 0.005

CO2,ST1,SU3,ST3

− 0.025

− 0.024

0.006

0.006

4.061

0

− 0.037

− 0.013

0.001

3.435

− 0.046

− 0.004

CP1,SS1,SS2,CP3

0.002

0.002

0.001

0.001

1.195

0

− 0.001

0.004

0.001

3.435

− 0.003

0.007

CP1,SS1,ST2,SU1

− 0.004

− 0.003

0.003

0.003

1.244

0

− 0.01

0.002

0.001

3.435

− 0.014

0.006

CP1,ST1,ST3,SU2

0.002

0.002

0.002

0.002

0.771

0

− 0.003

0.006

0.001

3.435

− 0.006

0.009

CP2,CP3,ST1,ST2

0.076

0.076

0.009

0.009

8.659

0

0.059

0.093

0.001

3.435

0.046

0.106

CP2,SS1,SU1,SS3

− 0.009

− 0.009

0.004

0.004

2.531

0

− 0.016

− 0.002

0.001

3.435

− 0.022

0.003

CP2,ST2,SU1,SU2

0.019

0.019

0.005

0.005

3.965

0

0.01

0.029

0.001

3.435

0.003

0.036

CP3,SU1,SU3,SS3

0.002

0.002

0.002

0.002

0.804

0

− 0.003

0.006

0.001

3.435

− 0.006

0.009

  1. Note: The null hypothesis is H0: t = 0, and a t-value above or below a critical value for the conventional a level supports the rejection of the null hypothesis. For all model-implied non-redundant vanishing tetrads in each of the measurement models, the parameter value of H0: t = 0 is in the bias-corrected 90% (one-tailed) Bonferroni-adjusted confidence interval. Hence, CTA-PLS does not reject H0 and, thus, supports the reflective measurement model specification

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Zhan, J., Zhang, S. & Trimi, S. The contingent impacts of dynamic service innovation capabilities on firm performance. Serv Bus 17, 819–849 (2023). https://doi.org/10.1007/s11628-023-00546-8

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  • DOI: https://doi.org/10.1007/s11628-023-00546-8

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