Edinburgh Napier University

  Nowadays, professional services play an essential role in the knowledge-intensive economy. The employees of these companies specialise in a specific field and are characterised by high knowledge intensity. However, competition between these companies requires them to develop capabilities through which they can offer innovative services. Thus, innovative companies succeed in differentiating themselves from traditional service providers. From the perspective of the entrepreneurial theory of the firm, the present study aims to identify the capabilities and strategies that enable professional service providers to create continuous streams of innovation and ensure their survival and profitability. To this end, three financial advising, investment management, and accounting firms in Iran were selected to be studied, and behavioural patterns shared by them, which were associated with innovation development, were identified. The present study employs a qualitative approach using the multiple case study method. Data analysis was conducted using thematic analysis. Research findings indicate that by using entrepreneurial and strategic capabilities and business, structural and cultural strategies, these firms were enabled to create continuous streams of innovation.