Manufacturing companies that adopt the servitization strategy usually show lack of knowledge regarding the service offering associated to their manufactured products. Acquiring external knowledge from service suppliers can be a way to tackle this problem. The objective of this study is to understand how manufacturing companies aiming at a servitization-driven business model innovation (BMI) integrate such knowledge from service suppliers. We focus on different types of collaboration that can occur and on the knowledge sharing (KS) dynamics of this collaboration. We employ a multiple-case study approach to analyze nine BMI processes from companies that transformed their traditional business model (BM) to a servitized BM. As a result, we obtain a theoretical framework that presents six possible KS dynamics for the servitization design by originally combining two main approaches for servitization-driven BMI (i.e. productoriented and service-oriented product-service systems) and three main configurations of relationships with service suppliers based on traditional new product development classifications of buyer-supplier integration (i.e. white, grey and black box configurations). Implications of combining a BMI and a buyersupplier KS perspectives to investigate the process of servitization for manufacturing companies are then discussed.
Purpose-The purpose of this paper is to study service innovation in product companies (servitization) by considering the relationship (moderation) between product companies and service suppliers. Methodology-Using a relational view of the firm, we propose that there are three main business dimensions that product companies have to manage in servitization and that the support of service suppliers can moderate the effects of these dimensions on the benefits obtained from the Product-Service System (PSS) delivered. To test these hypotheses, we perform a cross-sectional quantitative survey in 104 Brazilian and Italian product companies. Findings-Our findings show that the three business dimensions are important for servitization while there is a trade-off decision regarding service suppliers' involvement since suppliers act differently depending on the PSS orientation (product or service-oriented). Research limitations/implications-Our work is limited to the analysis of what should change in a company during servitization and the impact of supplier's support. Further research is needed to complement this study by analyzing the process and context of the organizational change. Originality/value-This is one of the first quantitative studies to provide evidence of how service supplier' support affects different servitization business dimensions and the obtained benefits for both product and service-oriented outputs. Practical implications-Our research contributes an understanding about how the benefits practitioners can obtain from servitization are strongly influenced by the involvement of service suppliers and how this influence depends on the PSS orientation of the product company.
Purpose
The provision of Industry 4.0 solutions demands a vast range of technology domains. To provide these solutions, small and medium-sized enterprises (SMEs) may need the support of different supply chain actors through an inbound open innovation strategy. The authors study the contribution of four types of supply chain actors for inbound open innovation: suppliers, competitors with complementary technologies, R&D centers and customers. The authors analyze how these four actors moderate the effect of integrated Industry 4.0 solutions on three main competitive strategies: cost, focalization and differentiation.
Design/methodology/approach
The authors conducted a survey on 77 SMEs from the automation sector, using OLS regression with moderating effects. They considered the integration of 15 technologies and 7 classic automation activities in the provision of Industry 4.0 solutions. The authors also studied three competitive outputs – technology cost reduction (cost), customer loyalty (focalization) and technology innovation (differentiation) – as well as four supply chain actors (moderators).
Findings
Expanding the provision of Industry 4.0 technologies increases customer loyalty and technology innovation. Collaboration with competitors (complementary technologies) leverage these results and reduce technology costs. Integration between customers and R&D centers elevates costs but R&D centers can foster long-run innovation.
Originality/value
This study is the first to empirically investigate inbound open innovation in the supply chain for technology development in the context of Industry 4.0. The authors discuss how these actors contribute to four inbound open innovation activities: technology scouting; horizontal technology collaboration; vertical technology collaboration; and technology sourcing.
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