Enhancing servitization by international consumer integration: the influence of open innovation and co-creation

Abstract

PurposeResearch demonstrates that servitization can achieve competitive advantages for firms; however, many firms are unable to achieve their target values due to various challenges. This study proposes a new model in which open innovation and co-creation are utilized to access consumer knowledge during the servitization process when developing customized services for international markets.Design/methodology/approachAn online survey was used to collect the data from 150 manufacturing firms. The data were analyzed using the partial least squares (PLS) approach.FindingsThe results indicate that open innovation positively affects servitization strategy. Moreover, consumer co-creation moderates the impacts of servitization on firm performance.Practical implicationsThis study confirms the significant role of open innovation and consumer integration in the servitization process, establishing that managers should effectively integrate different stakeholders from the service design stage (through open innovation) to the service delivery stage (through co-creation).Originality/valueThe paper's results prominently advance the present body of servitization literature by showing how the implementation of open innovation improves the servitization process, an issue that has been ignored in previous studies. Moreover, it seeks to resolve the inconsistent results on servitization's effect on performance by indicating the role of consumer co-creation in the servitization–performance link.

The innovation antecedents behind the servitization–performance relationship

“…Following the rationale behind this study, open innovation is presented as an antecedent of servitization. Few studies have linked open innovation to the success of servitization strategies (Abu Farha et al, 2022). The study identifies technological collaboration (open innovation) as a moderator of the relationship between technological innovation and servitization (H4).…”

Exploring the influence of hybrid product–service offerings on firm internationalization strategies: an international perspective

“…Additionally, Behl et al . (2023) and Abu Farha et al . (2022) delve into the enhancement of hybrid offerings' value in international markets through customer co-creation.…”

“…Shleha et al (2023) investigates the significance of customer proximity through service affiliates in diverse markets. Additionally, Behl et al (2023) and Abu Farha et al (2022) delve into the enhancement of hybrid offerings' value in international markets through customer co-creation. We proceed to offer an integrative analysis of these papers in the light of current debates.…”

“…Davies et al (2022) conducts a comprehensive literature review on how the coordination of hybrid offerings occurs through ecosystems rather than being internally developed by a single firm. In contrast, Abu Farha et al (2022) empirically evaluate the role of open innovation in implementing bundles of products and services within a single offer. Additionally, Magni et al (2023) delves into the role of Knowledge Intensive Business Service (KIBS) firms in sharing and disseminating knowledge within the local manufacturing business fabric.…”

“…A deeper understanding of consumer needs allows for a more tailored offering (Christofi et al ., 2020). On some occasions, this close relationship with the customer may involve co-creation processes (Abu Farha et al ., 2022). This is particularly essential in industrial environments where corporate clients have very specific needs that may necessitate specific investments and strong, long-term commitments, such as green supply chain management (Xing and Liu, 2023).…”