Dynamic Capability Building through partnering: An Australian Mobile handset case Study

Abstract

Dynamic capabilities are increasingly seen as an organisational characteristic for innovation and are regarded as a source of competitive advantage. In a quest for sustainability, service organisations are partnering with their stakeholders, and subsequently are aptly bringing innovation in services to market. Most of existing empirical research regarding dynamic capabilities seeks to define and identify specific dynamic capabilities, as well as their organizational antecedents or effects. Yet, the extent to which the antecedents of success in particular dynamic capabilities, contribute to innovation in service organisations remains less researched. This study advances the understanding of such dynamic capability building process through effective collaboration, and highlights the detailed mechanisms and processes of capability building within a service value network framework to deliver innovation in services. Deploying a case study methodology, transcribing interviews with managers and staff from an Australian telco and its partnering organisations, results show that collaboration, collaborative organisational learning, collaborative innovative capacity, entrepreneurial alertness and collaborative agility are all core to fostering innovation in services. Practical implications of this research are significant, and that the impacts of collaboration and the dynamic capabilities mentioned above are discussed in the context of a mobile handset case study