A STUDY OF DYNAMIC SERVICE INNOVATIVE CAPABILITIES, CORE  COMPETENCIES, AND SUSTAINABLE COMPETITIVE ADVANTAGES OF TAIWAN'S FASTENERS INDUSTRY

Kuo-Ming Chu

Cheng Shiu University, Taiwan

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Hui-Chun Chan

Far East University, Taiwan

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Abstract

This study integrates service innovation and the dynamic capability perspective to propose a new structure of “Dynamic Service Innovative Capabilities”, which firms use to adjust, integrate, and reconfigure internal resources, and to respond to external environmental alterations, in order to enhance the firm's capability to create new capabilities. This study takes 254 fastener firms in Taiwan as the research object, and the results indicate that the core competencies are the key factors for the success of dynamic service innovation capabilities and sustainable competitive advantage; and regardless of the strength or weakness of the market or technical capabilities, it will be significantly affected by the use of organizational learning and capacity reconfiguration in the dynamic capabilities of the enterprise. Finally, in the conclusion, the conditions for nurturing dynamic innovation capabilities in organizations are discussed.

Key words: Dynamic Service Innovative Capabilities; Dynamic Capabilities; Core Competencies; Sustainable Competitive Advantage; Fasteners Industry.

 

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