Second, we contribute by applying a

Second, we contribute by applying and operationalising the DCV approach specifically to a services context. We identify a set of dynamic capabilities that service organizations can draw on for the creation and realisation of innovations. This adds to the existing RBV and DCV literature in several ways. Some contributions (Wang and Ahmed, 2007; Sirmon et al., 2007; Teece, 2007) provide generic frameworks that identify Managing service innovation resources and dynamic capabilities for superior and sustainable firm performance in general. However, these frameworks are neither specified for a service context nor do they start with the specificities of the service innovation process. Other more focused contributions to the RBV and DCV debate look at particular resources or capabilities, but to our knowledge not at the business process of service innovation. As observed by Salomo et al. (2007), these studies focus on particular dynamic capabilities or resources such as managing alliances, acquisition, knowledge creation or indeed (aspects of) innovation or dynamic marketing capabilities (Bruni and Verona, 2009). Other studies in this tradition pinpoint specific issues such as related diversification (Døving and Gooderham, 2008) or internationalization of born global firms (Weerawardena et al., 2007) or specific industries[1]. An exception is Kindstro m et al. (2009, p. 331) who apply a dynamic capabilities approach to the service infusion process in manufacturing. We agree with them that