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This study developed and empirically tested a model examining the relationships among strategic capabilities, innova-tion intensity, and firm performance. Strategic capabilities include internal venturing capability and social relation-ship capability. Analyzing a sample of service firms from Taiwan, the study indicates that social relationships with other firms are important to facilitate innovative activities of service firms. Innovation intensity further helps service firms to improve a firm’s expected performance. However, internal resources capability does not show the expected effect on innovation intensity. And innovation intensity is also not related to a firm’s growth

Strategic Capabilities, Innovation Intensity, and Performance of Service Firms