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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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
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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