Challenges for going downstream

Motivations for servitization: the impact of product complexity

“…Services can deliver a new sustainable source of revenue to the manufacturer, helping it to overcome stagnating product markets (Eggert et al, 2011;Slack, 2005). The services market is often worth many times that of the product market, particularly as the installed product base increases (Auramo and Ala-Risku, 2005).…”

“…Many papers on this topic include a brief discussion of the motivations of manufacturers undertaking servitization; for example, Auramo and Ala-Risku (2005); Spring and Araujo (2013). These motivations generally draw on Wise and Baumgartner (1999) and are delineated by Oliva and Kallenberg (2003) into three main categories: competitive motivations, demandbased motivations, and economic motivations.…”

Striving for network power: The perspective of solution integrators and suppliers

“…Therefore, service providers must adjust their production capacity to the demand (Auramo and Ala-Risku, 2005), which means that their ability to predict demand reliably is essential (Cox, 2001b). The scope of customers' demand is also central in shaping the power sources of solution provision because it affects the possibilities of different supplying companies to act at the customer interface.…”

Supplier involvement in new product development: a case study from the semiconductor industry

“…It is possible to gain volume, design and technology capabilities through strategic supply chain management (Auramo & Ala-Risku, 2005;Chang et al, 2006). Supplier involvement in NPD brings new competences, fast penetration to new markets and resource conservation to the buyer (Wagner & Hoegl, 2006).…”

“…One of the classical defi nitions of "innovation" is the process of making improvements by introducing something new; it may refer to both radical and incremental changes to products, processes or services, and implicitly it means bringing solutions to problems (Baregheh et al, 2009). Innovation has always been at the center of competitiveness, with academics and practitioners devoting signifi cant amounts of effort and resources to the identifi cation of organizational and individual correlates of innovation for fi ve decades (Cooper, 1998).…”