Paradoxes in servitization

Product–service innovation and performance: the role of collaborative partnerships and R&D intensity

“…Product innovation is closely related to technological innovation, but service innovation cannot be reduced to technological innovation. Collaborative KIBS partnership extends the positive effect of innovation development to six forms of innovation – strategic, managerial, marketing and so on (Amara et al, ), making KIBS an innovation catalyst (European Commission, ) that help manufacturers overcome product–service innovation paradoxes (Einola et al, ).…”

“…This is particularly true of KIBS partnerships, where manufacturers can achieve product service innovation by partnering with service firms. KIBs partnerships help manufacturers to manage the paradox of focusing on core manufacturing activities while diversifying and differentiating their products by developing complementary innovative services (Einola et al, ).…”

“…Servitisation through KIBs partnerships may be valuable in overcoming and managing paradoxes involving growth and diversification (Einola et al, ). Such concentric alliances permit partnering firms to enhance their resource base, achieve higher product service innovation and provide integrated solutions whilst enabling manufacturers to maintain their traditional product‐identity by focusing on their unique resources and core competences.…”

Uncovering the role of cross-border strategic alliances and expertise decision centralization in enhancing product-service innovation in MMNEs

“…First, from a strategic point of view, we examine geographical location (local vs. international) as well as ownership (in-house vs. outsourcing) of the service unit. Second, we explore a mechanism to resolve organizational tensions caused by lack of coordination between service and product units (Calof & Beamish, 1995;Einola et al, 2016;Johnstone et al, 2014).…”

“…Thirdly, there is a coordination failure between product and service departments (Einola, Rabetino, & Luoto, 2016;Johnstone, Wilkinson, & Dainty, 2014) that ultimately is translated into high failure rates for servitized manufacturers (Benedettini, Neely, & Swink, 2015). One possible organizational mechanism to resolve this structural tension is the introduction of a central coordination unit (Kim, Park, & Prescott, 2003).…”