Abstract: The purpose of this study is to examine the relationships between collaboration, knowledge sharing, dynamic capability, IT capability, service innovation and performance of Taiwanese digital content microenterprise based on the resource-based view. Effective questionnaires were collected from 344 survey candidates from Taiwan digital content industry. The Partial Least Squares (PLS) approach was employed to test the research hypotheses. The result indicated that collaboration, dynamic capability and IT capability had a significant positive effect on service innovation. We provide a new framework to explain which factor will influence service innovation from external to internal. In addition, the findings indicated that service innovation had a positive effect on the performance in digital content microenterprise. Finally, theoretical and managerial implications of the research findings are discussed.

Key words: service innovation; digital content; resource-based

JEL code: O