Understanding the effects of service innovation capability on firm performance in AEC industry: mediating role of business model

Abstract

PurposeThe purpose of this study is to examine whether service innovation capability can affect firm performance in the architecture, engineering and construction (AEC) context, and, if so, how.Design/methodology/approachThis study developed a theoretical framework illustrating the performance impacts of service innovation capability through the business model in the AEC sector. An empirical study was conducted to test the hypotheses using 374 valid questionnaires using structure equation model (SEM).FindingsThe results verify that service innovation capability positively influences firm performance mediated by the business model. As to the direct effect, service innovation capability is positively associated with firm performance.Originality/valueThis study highlights how service innovation capability affects performance and reveals the underlying mechanism.