Service Innovation suggests how the concept of service can be improved which is already in practice. This can be either refined competence in customer relations, channel of distribution or innovation in technology or it can be combination of all three. Investing in the development of both physical and non-physical components of products and services available for sale can lead to enhanced business prospects, ultimately ensuring success.
This paper attempts to indentify core ingredients of service innovation and their impact on Online B2B industry in attaining competitive advantage with a resource based view. The difference found in organizational performance in the context of Online Business can be partially explained by Information Technology, Human Resource Management, Research & Development and strategic alliances practices and policies.
Furthermore, the research also attempts to establish how proper implementation of Human Resource Management practices, experienced adoption of Information Technology and IT-enabled services, well connected and inform Research and development can all together render greater service innovation opportunities whereas strategic alliance is the mediocre variable which requires lots of efforts to impact positively on service innovation.