The purpose of this study is to accurately understand the concept of SC (Service Capabilities: Hara et al. 2015) in order to contribute to the establishment of SC as a theory and its implementation in service practice. Specifically, author starts from the definition of SC by Hara et al. (2015) and go back to the definition of "service" (Vargo and Lusch 2008b), redefine it as a concept to capture phenomena that have not yet been focused on in DC (Dynamic Capabilities: Teece 2007) theory. Furthermore, using related case studies, author delves into the elements that SC is trying to address and propose a future research agenda. Based on the A2A perspective of SDL, assuming a situation in which the co-created value is judged phenomenologically by the beneficiaries individually, there are many variables to be handled for the success of value co-creation and the optimal combination is improvised when customers and employees face each other in real time and in the same space. In this study, author redefined SC as a concept that captures the capabilities and processes of employees and organizations that enable the optimal combination of many variables without incurring extra costs in such unique environments.
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