Dynamic Capability Building in Service Networks: An exploratory case study

Purpose –The purpose of this paper is to examine how collaboration in a service network of a major Telco, involving a key partner and its affiliate network, enables dynamic capability building for achieving services innovation. Design/methodology/approach – The method for this paper is a case study of a large Telco, including its distribution channels and franchised retail centres; and a key trading partner, TPartner, and its affiliated network. Interviews were conducted, transcribed, coded, and similarities in views by different participants were incorporated into emergent themes and patterns for analysis. Findings – The findings are that collaboration, collaborative organisational learning, collaborative innovative capacity, entrepreneurial alertness, and collaborative agility are all core dynamic capabilities that foster innovation in services. Second, collaboration enables firms to redefine their strategic and operational capabilities. Third, partnering allows managers to rethink, rearrange and reposition their sourcing strategies to better meet customer demand. Lastly, through partnering with customers and their ensuing engagement, managers are equipped with superior ability to anticipate discontinuity in customer preferences across channels, and through customer knowledge managers are able to meet future demand expediently. Originality/value – This study advances our understanding of how organisations can build competence based on dynamic capabilities through collaboration in order to foster service innovation.