Abstract
Small Medium accountancy Practices (SMPs), the smallest subset of accountancy practices, are classified as Micro Small Medium Enterprises and regarded as the most important provider of support to other SMEs. In recent years, several challenges such as changing regulation/deregulation, technology, client needs, together with competition for talent, has driven the need for SMPs to engage in service innovation. Service innovation is described as a new or enhanced service offering intended to benefit SME clients. Whilst a vast amount of literature has explored the capabilities needed for firm innovation from various perspectives, limited research has explored the dynamic capabilities needed for service innovation in general, but in particular for SMPs. Furthermore, it has been suggested that entrepreneurial orientation is both an important antecedent for dynamic capabilities and service innovation. However, limited empirical research has explored the relationship between these concepts. This research aims to shed new light on this topic by exploring the dynamic capabilities and entrepreneurial orientation required for service innovation in SMPs. Using a mixed methods study design, this research analyses data from SMPs on the Island of Ireland. The findings will contribute to new insights on the drivers of service innovation for SMPs and the specific capabilities which underpin service innovation in SMPs. Furthermore, they will identify the relationship entrepreneurial orientation has for dynamic capability building and service innovation within the context of SMPs, which to date is underexplored.