Purpose -The purpose of this paper is to identify and describe certain critical dimensions related to service innovation in manufacturing firms. The paper focuses on dimensions related to the service transition, the offering and the development project. Design/methodology/approach -A multiple case study was conducted in order to trace specific service innovations and to explore critical dimensions and events throughout their development. A total of 16 interviews were held, covering service innovations in SKF, Volvo Buses, and Volvo Trucks. Findings -Each of the three service innovations studied are examples of recombinative innovations. While there are some differences in terms of what is innovative, a common theme is the bundling of technology and services. Recombinative innovation opens up the possibility to combine standardization and customization, which has been identified as a success factor for services in manufacturing companies. Originality/value -Although a large number of manufacturing firms are introducing services to utilize the entire life-cycle of the installed base, there is a shortage of literature that includes elaborate empirical accounts of service innovations in manufacturing firms. The study expands the scope for viewing service innovation by not only focusing on the offering but also taking into account service transition and the development project.
In principle, organizations know how to do servitization, but in practice, many struggle to change their business models to include service offerings. To understand this struggle, this paper examines servitization in a large multinational manufacturer within the pulp and paper industry. Utilizing practice theory, the study explicates the servitization process as a contestation of a company's parallel business models-one existing and dominant; one emerging. As business models materialize in organizational practices, and therefore have the potential to frame and organize servitization efforts, the models give rise to contestations in the practices performed by actors in the organization and the ecosystem. The elements of such contestations provide a better understanding of the ways in which practices may be disrupted to support servitization. Contestations can thus be creative instead of problematic. As a result, this paper extends the conceptualization of servitization as a bottom-up, emergent and iterative process of business model contestation.
UNDERSTANDING NEW SERVICE DEVELOPMENT AND SERVICE INNOVATION THROUGH INNOVATION MODES ABSTRACT PurposeThe purpose of this paper is to explore the role of innovation modes in understanding challenges of integrated NSD and NPD, and the use of structured NSD processes in manufacturing firms. Design/Methodology/ApproachThe research is based on a two-stage multiple case study. The first stage is an interview study of 17 key informants representing manufacturing firms in the machine industry.The second stage is an in-depth study of three service innovations at three manufacturing firms based on 16 interviews with key informants. FindingsThe results of the study show that NSD processes are often more structured if the service is developed separately from the product. The fact that different innovation modes benefit from varying degrees of structure in the development process means that integrated service development can be challenging. Furthermore, service innovations often follow a trajectory of innovation modes before succeeding in the market. Some innovation modes occur within the NSD process, while others occur outside the process.One success factor for NSD is the fit between the innovation modes and the NSD process, rather than the NSD process per se. Originality/ValueThis research uses innovation modes to explain why NSD in manufacturing firms is often performed on an ad hoc basis, and how service innovations go through a trajectory of innovation modes. In this way, the study contributes to theory development of service innovation, and specifically service innovations in manufacturing firms.
Purpose -The paper seeks to investigate how and why service strategies differ among manufacturing companies at different positions in a supply chain. Design/methodology/approach -The research was based on a multiple case study of three original equipment manufacturers (OEMs) -a heavy truck provider, a bus provider, and a construction equipment provider -and eight of their suppliers in the automotive industry. A total of 19 semi-structured, in-depth interviews were conducted with managers, including service managers, production managers, marketing managers, and chief executive officers. Findings -A company's choice of service strategy appears to be influenced by its position in the supply chain. Whereas the OEMs were all after-sales service providers, the suppliers were either development partners or had a customer service strategy. The main reasons for the difference in strategies seem to relate to differences in customer demand, the products to which the services were related, and the size of the companies.Research limitations/implications -The paper was conducted as a multiple case study that focused on two positions in the supply chain. In order to further validate the results, future studies should include more case studies that cover additional positions in the supply chain. Originality/value -The paper contributes to the sparsely researched area of manufacturing firms as services providers. Previous research has tended to focus on the actions of OEMs. The wider scope of the supply chain, covered in this paper, shows that small suppliers are influenced by the service infusion of the manufacturing industry.
When manufacturing firms increase the share of service revenues, managing service provision becomes challenging. This study extends previous research on servitisation in individual firms by analysing the challenges service provision creates in a value network. The challenges are identified both within the firms and in the business relationships in the value network. In addition, the paper identifies and describes service manoeuvres firms use to address challenges resulting from servitisation. This case study of a value network is based on interviews carried out at 13 firms in the automotive industry, including suppliers, original equipment manufacturers (OEMs), and consultancies. The research shows that service manoeuvres, such as new types of resource integration and value constellations, are used to overcome challenges in the value network.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
customersupport@researchsolutions.com
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.