Competence development needs for micro-enterprises entering servitisation

Abstract

Servitisation, as a means to drive growth, provides a great business opportunity for microenterprises (micros), offering the possibility of longer and more profitable customer relationships. However, such enterprises possess limited human resources and, thus, competences. Competence-related challenges must be understood in order to operate successfully in the field of servitisation. This study produces new knowledge about competence development needs. The study material consists of interviews conducted in ten Finnish subcontracting micros in the fields of forestry, agriculture, and mining. Using a multiple case approach allows for an extensive examination of the insufficiently studied phenomenon of interestmicros engaging in servitisation -utilising Tukker's (2004) product-service system. The results contribute both academically and practically by showing that micros face competence-related servitisation challenges in terms of entrepreneurship, change management, and financing. The study broadens Tukker's product-service categorisation to include product manufacturing industries that offer assembly services.

Crisis, innovation and change management: a blind spot for micro-firms?

“…Nevertheless, these studies do not focus on how microfirms manage change, as the distinction in their size is not clear. The research by Taipale-Erävala et al (2021) and Rastrollo-Horrillo (2021) is much closer in this direction. The first argues that MF change management must be contingent on core organizational competencies.…”