The impact of social and organisational capital on service innovation capability during COVID-19: the mediating role of strategic environmental scanning

Abstract

PurposeThis purpose of this study was to examine the impact of social and organisational capital on service innovation capability among service firms in the United Arab Emirates (UAE) during the COVID-19 pandemic.Design/methodology/approachTo test the proposed research model, data were collected using a cross-sectional questionnaire. The study sample consisted of 188 private and public service sector managers in the UAE. Partial least square-based structural equation modelling (PLS-SEM) was used to examine the research model's validity and reliability and to test the research hypothesis.FindingsThe empirical evidence indicates that during this pandemic the relationship between social capital and service innovation capability was fully mediated by strategic environmental scanning, while partially mediating the relationship between organisational capital and service innovation capability.Practical implicationsManagers in service organisations must be proactive during crises such as the COVID-19 pandemic. Specifically, they should emphasise effective environmental scanning and the tracking of customer preferences to provide customised services that are valued and meet the emerging requirements of their customers. Prioritising investment in organisational capital to enhance innovation capacity is also recommended.Originality/valueThis study is the first to examine strategic environmental scanning as a mediator between social and organisational capital and service innovation capacity during a pandemic. There were significant differences between the findings of our study and previous studies: the authors found that, during crises, management priorities change, and businesses become more reliant on organisational capital to develop service innovation capability.