Boosting service performance through architecting firm-specific resources: evidence from Indonesian SME decorations

Purpose This research aims to develop a conceptual model using architecting firm-specific resources (AFSR) to improve service performance rooted in the resource advantage theory of competition (RAToC). This strategic method emphasized the ability of small and medium-sized enterprises (SMEs) to manage a variety of unique resources, both internal and external, to produce superior services in the Indonesian creative industry. Design/methodology/approach A cross-sectional questionnaire survey was administered to 500 owners and managers of decoration service SMEs to test the proposed model. Only 312 surveys were reliable to proceed with data analysis. Furthermore, this research adopted the structural equation modeling (SEM) method using AMOS 23 software to test each hypothesis, assess the validity and reliability of the measurement model and evaluate the suitability. Findings Serial mediation analysis was used to examine the mediating effect of two concepts in the strategic framework aimed at enhancing AFSR and green innovation novelty (GIN), specifically mediating the relationship between collaborative knowledge sharing (CKS) and service performance. Research limitations/implications This research did not consider potential differences in performance or strategies used by businesses with longer operational histories. Future research should focus on including SMEs engaged in the decoration industry for 10 years. This could provide valuable insights into the development of business practices and the influence of experience on operational success and innovation. Originality/value The significant mediating effects of AFSR and GIN on the relationship between CKS and service performance offer new insights into the mechanisms by which SMEs in the decoration service sector combine and integrate various resource advantages.