Employee Capabilities for Digital Service Innovation in Multi-Level Marketing: An Application of Importance - Performance Analysis(IPA)

Digital service innovation has become essential for enhancing customer value and organizational competitiveness. However, research on the capability requirements of multi-level marketing (MLM) practitioners remains limited. Drawing on Service-Dominant Logic, Dynamic Capabilities Theory, this study identifies four key capability dimensions: Persuasion, Co-creation, Adaptability, and Self-sustainability. Using questionnaire survey data and Importance–Performance Analysis (IPA), the study examines the perceived importance and actual performance of these capabilities to identify management priorities and resource allocation needs. The findings reveal gaps between capability importance and performance, highlighting areas requiring targeted improvement. This study contributes to digital service innovation research in the MLM context and offers practical insights for developing training strategies and capability-building programs to support digital transformation. JEL classification numbers: C83, M15, O31. Keywords: Multi-level Marketing (MLM), Digital Service Innovation, Employee Capabilities, Importance–Performance Analysis (IPA), Service Management.