Survival by “Servicisation”: A Multiple-Case Study of the Taiwanese Video Games Industry

  • Alger Lee
Part of the Service Science: Research and Innovations in the Service Economy book series (SSRI)


Around 10 years ago, the Taiwanese video games industry was faced with a series of challenges which put many of the local video game companies out of business. However, some companies managed to meet these challenges by conducting various innovative activities and successfully transforming themselves from small offline-PC-game producer (with a business model very similar to those of conventional manufacturing companies) into large complex-online-service providers. Adopting complementary lines of innovation reported in the literature as “theoretical lenses” for investigation, this case study not only finds the Taiwanese VGD industry highly innovative, but also reveals “hidden innovations” embedded in the process of “servicisation”. Throughout this radical transformation, dynamic capabilities (i.e. continuous learning, developing and upgrading core competences) are the key to success. More significantly, since the VGD industry is a creative industry, these empirical findings make a contribution to the recent scholarly effort to address the research gap in the study of highly-innovative creative industries. In addition, this case study provides valuable insights for policy makers into providing more effective support for creative industries in the near future.


Service Innovation Online Game Creative Industry Software Piracy Gaming Experience 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Barras R (1986) Towards a theory of innovation in services. Res Policy 15:161–173CrossRefGoogle Scholar
  2. Caves RE (2000) Creative industries: contracts between art and commerce. Harvard University Press, CambridgeGoogle Scholar
  3. Cunningham S (2004) The humanities, creative arts and the innovation agenda. In: Wissler R, Haseman B, Wallace S-A, Keane M (eds) Innovation in australian arts, media and design: fresh challenges for the tertiary sector. Post Pressed, Flaxton, Qld, pp 221–232Google Scholar
  4. Davies A (1997) The life cycle of a complex product system. Int J Innovation Manage 1:229–256CrossRefGoogle Scholar
  5. den Hertog P (2000) Knowledge-intensive business services as co-producers of innovation. Int J Innovation Manage 4:491CrossRefGoogle Scholar
  6. Gershuny J, Miles I (1983) The new service economy: the transformation of employment in industrial soc. Frances Pinter, LondonGoogle Scholar
  7. Hobday M (1998) Product complexity, innovation and industrial organisation. Res Policy 26:689–710CrossRefGoogle Scholar
  8. Hobday M, Rush H, Tidd J (2000) Innovation in complex products and system. Res Policy 29:793–804CrossRefGoogle Scholar
  9. Miles I (2005) Innovation in services. In: Fagerberg J, Mowery D, Nelson R (eds) The Oxford handbook of innovation. Oxford University Press, Oxford, pp 433–458Google Scholar
  10. Miles I, Green L (2008) Hidden innovation in the creative industries. NESTA Future Lab, LondonGoogle Scholar
  11. Miles I, Green L (2010) Innovation and creative services. In: Gallouj F, Djellal F (eds) The handbook of innovation and services: a multi-disciplinary perspective. Edward Elgar, Cheltenham, pp 178–196Google Scholar
  12. Rush H (1997) Managing innovation in complex product systems (CoPS). IEE Colloquium on EPSRC Technology Management Initiative. Engineering and Physical Sciences Research Council 9 Dec 1997, 4, Institution of Electrical EngineersGoogle Scholar
  13. Teece D, Pisano G (1994) The dynamic capabilities of firms: an introduction. Ind Corp Change 3(3): 537–556CrossRefGoogle Scholar
  14. Teece D, Pisano G, Shuen A (1997) Dynamic capabilities and strategic management. Strategic Manage J 18:509–533CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media New York 2012

Authors and Affiliations

  • Alger Lee
    • 1
  1. 1.Taiwan Institute of Economic ResearchTaipei CityTaiwan

Personalised recommendations