Service-dominant orientation, dynamic capabilities and firm performance
Wilden, Ralf, and Gudergan, Siegfried (2017) Service-dominant orientation, dynamic capabilities and firm performance. Journal of Service Theory and Practice, 27 (4). pp. 808-832.
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Abstract
Purpose: The purpose of this paper is to investigate the effects of a firm’s service-dominant orientation on marketing and technological capabilities, and its performance. It outlines how a service-dominant orientation offers guidance for the development and deployment of ordinary capabilities, and indirectly affects performance. Additionally, it delineates how dynamic capabilities affect the impact of a service-dominant orientation on ordinary capabilities.
Design/methodology/approach: Partial least squares structural equation modeling drawing on data from 228 firms serves to assess hypotheses relating service-dominant orientation and dynamic capabilities with firm performance.
Findings: The results indicate that marketing and technological capabilities fully mediate the relationship between a firm’s service-dominant orientation and firm performance. Furthermore, the positive marginal effect of a firm’s service-dominant orientation on its marketing capabilities increases with the firm displaying a stronger service-dominant orientation. In addition, the positive effect of service-dominant orientation on marketing capabilities reduces the more the firm deploys dynamic capabilities.
Research limitations/implications: Because of the cross-sectional sample, future studies could adopt longitudinal research designs to explore the impact of a service-dominant orientation on ordinary capabilities and performance, or investigate the applicability of the findings in other contexts.
Practical implications: The findings imply that implementing a service-dominant orientation can be beneficial for firms. However, because the impact of such an orientation weakens the greater a firm’s dynamic capabilities, managers need to be mindful of this trade-off.
Originality/value: The study is the first to establish a link between the dynamic capability view, originating from strategy research, and service-dominant logic, stemming from marketing thinking.
| Item ID: | 70787 |
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| Item Type: | Article (Research - C1) |
| ISSN: | 2055-6233 |
| Keywords: | Co-creation, Dynamic capability, Firm performance, Partial least squares, Service-dominant logic, Strategy |
| Copyright Information: | © Emerald Publishing Limited |
| Date Deposited: | 20 Jun 2022 00:47 |
| FoR Codes: | 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3507 Strategy, management and organisational behaviour > 350718 Strategy @ 75% 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3506 Marketing > 350605 Marketing management (incl. strategy and customer relations) @ 25% |
| SEO Codes: | 15 ECONOMIC FRAMEWORK > 1503 Management and productivity > 150399 Management and productivity not elsewhere classified @ 100% |
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