The Match between Service innovation strategy and technical capabilities of manufacturing firms&mdash;&mdash;A case study of Huawei

Science Research Management ›› 2015, Vol. 36 ›› Issue (5) : 118-126.

The Match between Service innovation strategy and technical capabilities of manufacturing firms——A case study of Huawei

Zhao Lilong^1,2, Wei Jiang¹

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Abstract

Based on a longitudinal case study of a Chinese communication equipment manufacturing firm (Huawei), this paper explores the relationship of strategic matching between manufacturing firms' service innovation strategy and technological capacity in the perspective of resource-based view. The findings show that manufacturing firms with lower technological capacity can provide comprehensive product supporting service and consequently enhance product value effectively when they select incremental service innovation strategy. In contrast, while owning higher technological capacity, manufacturing firms are required to implement radical service innovation strategy to gain spillover effects, provide special value for customers and finally establish new competitive advantage. This paper contributes to completing the extant theory of service innovation strategy research by expanding the theoretical boundary, and provides essential practical references to manufacturing firms in China by suggesting how to implement service innovation strategy.

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manufacturing firms / service innovation strategy / technological capabilities

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Zhao Lilong, Wei Jiang. The Match between Service innovation strategy and technical capabilities of manufacturing firms——A case study of Huawei[J]. Science Research Management. 2015, 36(5): 118-126

References

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