Abstract
Amidst the acceleration of internationalization, service innovation has emerged as a critical pathway for New Energy Vehicle (NEV) firms to attain sustainable growth. Adopting a dynamic capability view (DCV), this paper investigates how service design contributes to the development of service innovation dynamic capabilities (SIDCs) within firms undergoing internationalization. Drawing upon a case study of the BYD New Energy Vehicle firm, the findings indicate that the functional, systemic, and iterative characteristics of service design facilitate the construction of micro-foundations for SIDCs. This is achieved through the integration of user insights, the fostering of cross departmental collaboration, and the reconfiguration of the service system. Consequently, this reinforcement enhances the skills, processes, and organizational architecture that underpin the firm's SIDCs. This study theoretically bridges dynamic capability theory and design research. Practically, it offers implications for firms seeking to leverage service design as a driver for service innovation.
Keywords
Service Innovation, Service Design, Dynamic Capability View, Internationalization
DOI
https://doi.org/10.21606/drs.2026.2017
Citation
Li, C., and Zhang, J. (2026) Service Design-Driven Formation of Dynamic Capabilities for International Service Innovation: A Case Study of a Chinese NEV Firm, in Simeone, L., Gray, C. M., Verhoeven, A., de Götzen, A., Bakırlıoğlu, Y., Zohar, H., Stead, M., and Buwert, P. (eds.), DRS2026: Edinburgh, 8–12 June, Edinburgh, United Kingdom. https://doi.org/10.21606/drs.2026.2017
Creative Commons License
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Included in
Service Design-Driven Formation of Dynamic Capabilities for International Service Innovation: A Case Study of a Chinese NEV Firm
Amidst the acceleration of internationalization, service innovation has emerged as a critical pathway for New Energy Vehicle (NEV) firms to attain sustainable growth. Adopting a dynamic capability view (DCV), this paper investigates how service design contributes to the development of service innovation dynamic capabilities (SIDCs) within firms undergoing internationalization. Drawing upon a case study of the BYD New Energy Vehicle firm, the findings indicate that the functional, systemic, and iterative characteristics of service design facilitate the construction of micro-foundations for SIDCs. This is achieved through the integration of user insights, the fostering of cross departmental collaboration, and the reconfiguration of the service system. Consequently, this reinforcement enhances the skills, processes, and organizational architecture that underpin the firm's SIDCs. This study theoretically bridges dynamic capability theory and design research. Practically, it offers implications for firms seeking to leverage service design as a driver for service innovation.