Orientation of business service enterprises: theoretical and terminological issues

In Chapter 2, the business orientations of companies providing business services are analysed. Market, entrepreneurial and innovation orientation are discussed to show the reasons for evolution and differences between them. The central concept is innovation orientation and some approaches to it are discussed. Finally, the authors’ model of innovation orientation is elaborated. In its theoretical sphere, the model is embedded in the knowledge-based view, which means that a competitive advantage is created based on capabilities, their dynamics and non-diminishing, even growing, rates of return. Dynamic capabilities have the capacity to reconfigure, redirect, transform, shape and integrate central knowledge, external resources and strategic and complementary assets to deliver innovative business services. It is assumed that innovation orientation is a multidimensional construct in which each dimension can play a unique role in driving performance. Six dimensions of the model are identified: strategic, organisational culture, human resources, structural and process, marketing and technology.