The Mediating Role of Service Innovation on the Relationship between Strategic Orientation and Operational Performance: the Moderating Effect of Technological Capabilities.

Abstract

Survival in today’s dynamic environment requires organizations to have superior performance compared to competitors. In order to achieve this superior performance this study aimed to examined the effect of both strategic orientation and service innovation on operational performance, based on the resource-based view and dynamic capabilities theory of the firm, a model is developed to achieve the moderating effect of technological capabilities on the relationship between strategic orientation and service innovation and how service innovation mediate the relationship between strategic orientation and operational performance. The study employed the quantitative method via convenience sampling; the population was the 161 managers of the service firm in Khartoum state response rate with 97%. Data from the study were collected analyzed using descriptive statistics, person correlation and path analysis through using AMOS in structural equation modeling demonstrates some empirical supports to the model of this study. The results indicated that there is a positive relationship between some dimensions of strategic orientation (market and service) and operational performance; also the results predict that a positive relationship between components of strategic orientation (market and service and learning orientations) and service innovation. Furthermore, the results indicated that a partial mediate of two component of service innovation (incremental and radical) on the relationship between strategic orientation and operational performance, in addition to that the result showed that a fully moderate of technological capabilities on the relationship between strategic orientation and service innovation, based on study’s results, the discussion of the findings, the theoretical and practical implications as well as the limitations and recommendations for future research in this study.