Dynamic capabilities, human capital and service innovation: the case of Taiwan ICT industry

This study focuses on the influence of dynamic capabilities (DCs) on service innovation and further examines the mediating effects of generic and specific human capital on the relationship between DCs and service innovation. 225 questionnaires were collected from paired cases (IT and sales departments) of information and communication technology (ICT) companies in Taiwan. The results from an analysis using PLS showed that DCs have a positive effect on service innovation, as well as generic and specific human capital. Moreover, generic and specific human capital play mediating roles in the relationships between DCs and service innovation. This study contributes towards gaps by empirically examining the mediating effects of fostering and deploying generic and specific human capital on services innovation, thus providing IT and sales managers with a better account of how services innovation comes about within dynamic environments.