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

Tang, X; Wang, M and Li, H (2025) Understanding the effects of service innovation capability on firm performance in AEC industry: Mediating role of business model. Engineering, Construction and Architectural Management, 32(2), pp. 893-911. ISSN 0969-9988

Abstract

Purpose: The 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/approach: This 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). Findings: The 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/value: This study highlights how service innovation capability affects performance and reveals the underlying mechanism.

Item Type: Article
Uncontrolled Keywords: architecture; business model; engineering and construction; firm performance; service innovation capability
Index terms: questionnaire, methodology, direct effect, firm performance, business model, empirical study
Subjects: business analysis, research methods, factor and component analysis, business, data collection methods
Topics: Research Practice, Business Strategy
Descriptive scope: 3 CTA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here