Roles of service innovation and dynamic internal resources on the organizational innovativeness-competitiveness relationship in Indian IT sector—A moderated mediation model

Abstract

This study develops a moderated mediation model to investigate the relationship between organizational innovativeness and organizational competitiveness, with service innovation as a mediating variable. It further explores the moderating effects of organizational support and organizational flexibility on this relationship. A quantitative, cross-sectional survey was conducted among 1350 IT solution providers operating within Software Export Zones in India. Data were collected from 110 firms, targeting project managers, senior project managers, general managers, and vice presidents responsible for project oversight. A pretested, self-administered questionnaire was used for data collection. Structural equation modeling was employed to validate the measurement model and to test the hypothesized relationships. The findings demonstrate that service innovation plays a key mediating role between organizational innovativeness and competitiveness. Moreover, both organizational support and flexibility significantly moderate this relationship. The results underscore the importance of dynamic organizational capabilities in enhancing service innovation and sustaining competitive advantage in the IT services sector.