Book chapters and theses in literature review: to include or not?
(Almost) everything is based on previously published work! But I think maybe you are referring to what we call the "secondary literature", which is review articles, books etc that don't present novel research (the "primary literature") but rather summarise or package up other research articles. 

Yes, secondary literature can certainly be included in a literature review, especially if it gives ideas/opinions that have not been prominent elsewhere. However, if you refer to particular results then these should always refer back to the primary literature, even if you also give a mention to how those results have been described or discussed in the secondary literature.

(Note that dissertations/theses very often fall under the category of primary literature, in fact in some areas it is a requirement that they include novel research)