Service Innovation Ecosystems In The Saudi Industrial Sector: A Perspective Through Dynamic Capabilities 

Abstract

Service innovation represents a critical aspect in the evolution of industrial sectors worldwide, serving as a catalyst for growth and adaptation. In the context of the industrial sector of Saudi Arabia, service innovation is particularly fundamental, embodying the convergence of creativity and strategic dynamism required to meet the ambitious goals set forth by the Saud Arabian 2030 vision. This research offers a comprehensive exploration of service innovation within this dynamic sector, emphasizing the necessity of dynamic capabilities in cultivating a sustainable and resilient service innovation ecosystem.

Embarking on an extensive literature review, the study identifies an escalating engagement with innovation practices in the region over the last decade, while also uncovering specific gaps in service innovation research. A thorough mixed-methods approach is employed, encompassing detailed analysis of corporate annual and sustainability reports, a survey targeting industry innovation and business development professionals, and detailed insights collected from expert interviews conducted through the Consensus Assessment Technique (CAT).

The investigation reveals a significant relationship between the agility of dynamic capabilities within service innovation performance, with strategic collaborations and digital advancements standing out as key enhancers of this positive correlation. A thorough examination of service innovation practices across the prominent sectors of energy, oil and gas, and petrochemicals illustrates a sector in transition, progressing toward a diversified and sustainable economic framework.

While the survey data suggests a moderate degree of reliability, the insights offered by the expert evaluations explore the deeper realities of applying these dynamic capabilities within the industry. The conclusion of the research is a series of strategic recommendations that emphasize the imperatives of nurturing a robust service innovation culture, solidifying collaborative networks, and the thoughtful integration of digital innovations. These recommendations are not only theoretical contributions to the dialogue on service innovation but also serve as a practical guide for industry leaders and policymakers in steering the Saudi industrial sector towards a path of sustained growth and elevated global standing.