Measuring the Core Competencies of Service Businesses: A Resource-Based View

Recently, more and more organizations attempt to provide service businesses to increase their customer satisfaction, organizational profit, and market share. Despite service businesses have contributed to the economic growth and employment in many countries, their productivity growth is still stagnating. In the resource-based view (RBV), the resources and capabilities of an organization are seen as the leverage for developing the core competencies, which are the key to create and sustain its competitive advantage. To quote an old sage: "No measurement, no management." Measuring the core competencies of service businesses is vital to the competitive advantages of organizations around the world. Based on the RBV, this paper aims at proposing a model to measure and improve the core competencies of service businesses, with various indexes of the resources and capabilities. The model encompasses the recently proposed Service Innovation Capability Maturity Model (SICMMTM) and will be illustrated through case studies. Finally, recommendation for practice will be presented and discussed.