A contingency view to novelty: The role of product-service strategy, sensing capability and environmental turbulence

Purpose: The aim of this study is to examine the impact of the fit between product-service strategy and sensing capability on novelty, and the potential moderating impact of contextual factors (i.e. technological and market turbulence) on novelty. Design/methodology/approach: In line with the aim of the study, a quantitative approach is adopted and a multi-item scale survey is designed to collect primary data. Using a mixed mode survey, a total number of 491 questionnaires are collected from a sample of UK-based telecommunications firms. Multiple regression is used to test the hypotheses and predict the outcomes. Findings: The results support the positive contribution of a contingency approach to the study of the impact of the fit between product-service strategy and sensing dynamic capability on novelty. The results also partially confirm the reinforcing impact of technological and market turbulence on novelty. Originality/value: This study extends research on product-service strategy and sensing capability by adopting a contingency view, which intends to serve two purposes: to complement the existing reductionistic explanations and to explore how the relationship between product-service strategy and sensing capability could create novelty as well as the degree to which this relationship could be moderated in light of the external contextual factors. © 2018, Emerald Publishing Limited.