| Abstract |
Small and Medium Accounting Practice Firms (SMPs) have been recognized as a core element for fostering SMEs in order to keep their business economically and financially sustainable. Environmental change is pushing SMPs to innovate their services due to SMEs new needs and competitive challenge. Unfortunately, new service development has been recognized as a research field that requires specific approaches, also distinguishing between different service sectors. In order to fill this gap this paper analyzes the case of Innovation in Small Accounting Practice Firms. According to Resource-Based View using the Intellectual Capital framework, human capital, relational capital and structural capital are key factors for fostering innovation as well as strategic intent. Indeed, strategy is about the effort spent on being different, using internal and external resources. Thus, we analyze the role of intellectual capital and strategy intent on new service development. In order to test our model a questionnaire has been developed and provided in the North East of Italy to a sample of 11.267 small and medium accounting firms obtaining 2.266 responses and 961 completely filled forms. A logistic regression model was used to test our hypothesis considering the role of the SMPs' size as a control variable. Results show how relational capital and human capital are key factors for fostering new service development. However if these variables are key elements in order to provide key sources for developing new service, the strategy intent operates as a prerequisite. Indeed using the Treacy and Wiersema model we found that firms which carried out a service leadership strategy have a greater probability of developing new service than firms that compete following a cost leadership strategy.. |
