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An Integrated View of Service Innovation in Service Networks

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Abstract

This chapter provides an insight into how service innovation may be enabled in service systems. In particular, we look at the ability of the organizational networks to collaboratively generate the capacity to adapt to changing circumstances rather than as individual firms on their own, using the RARE (Resources, Activities and Routines configured and reconfigured through Entrepreneurial actions) strategic framework. This leads into unraveling the complexity of strategic decision making in service networks through co-evolutionary adaptation, or the learning of organizations over time and the resulting virtuous process of experience, learning, and dynamic capabilities enabling them to respond to and launch a variety of competitive actions. Finally, we report on how service networks can address the duality of dynamic control capacity and responsiveness, known as the Paradox of Flexibility, through linking strategic and operational capabilities, as well as customer-supplier duality capabilities, in real time. This in the end results in innovation in services or our notion of “elevated” service offerings.

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Authors and Affiliations

  1. University of Technology, Sydney, Australia

    Renu Agarwal

  2. United Arab Emirates University, Sharjah, UAE

    Willem Selen

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  1. Renu Agarwal
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  2. Willem Selen
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Editors and Affiliations

  1. Department of Information Systems, W. P. Carey School of Business, Main Campus PO BOX 874606, Tempe, 85287, Arizona, USA

    Haluk Demirkan

  2. IBM Research - Almaden, Harry Road 650, San Jose, 95120-6099, California, USA

    James C. Spohrer

  3. IBM Almaden Research Center, San Jose, 95120-6099, California, USA

    Vikas Krishna

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Agarwal, R., Selen, W. (2011). An Integrated View of Service Innovation in Service Networks. In: Demirkan, H., Spohrer, J., Krishna, V. (eds) Service Systems Implementation. Service Science: Research and Innovations in the Service Economy. Springer, Boston, MA. https://doi.org/10.1007/978-1-4419-7904-9_16

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  • DOI: https://doi.org/10.1007/978-1-4419-7904-9_16

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