Servitization: A contemporary thematic review of four major research streams

Raddats, Chris; Kowalkowski, Christian; Benedettini, Ornella; Burton, Jamie; Gebauer, Heiko

doi:10.1016/j.indmarman.2019.03.015

Cited by 347 publications

(424 citation statements)

References 152 publications

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“…Business model innovation is crucial for industrial manufacturers (Adrodegari and Saccani, ; Foss and Saebi, ; Raddats, Kowalkowski, Benedettini, Burton, and Gebauer, ; Teece, ) and it has received considerable attention in the literature on management. While a business model represents the “design or architecture of the value creation, delivery, and capture mechanisms” of a firm (Teece, , p. 172), business model innovation represents “designed, novel, non‐trivial changes to the key elements of a firm's business model and/or the architecture linking these elements” (Foss and Saebi, , p. 201).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Value Creation and Value Capture Alignment in Business Model Innovation: A Process View on Outcome‐Based Business Models

Sjödin¹,

Parida²,

Jovanovic³

et al. 2020

J of Product Innov Manag

301

184

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Industrial manufacturers are innovating their business models by shifting from selling products to selling outcome‐based services, where the provider (manufacturer) guarantees to deliver the performance outcomes of the products and services. This form of business model innovation requires a profound yet little understood shift in how value is created, delivered, and captured. To address this research gap, our study examines two successful and four unsuccessful cases of this shift. We find that effectiveness in business model innovation hinges on the three process phases that unfold in collaboration with the customers: value proposition definition, value provision design, and value‐in‐use delivery. We also find that that success is determined by the alignment of specific value creation and value capture activities in each phase: identifying value creation opportunities—agreeing on value distribution in value proposition definition, designing the value offering—deciding on the profit formula in the value provision design, and finally refining value creation processes—regulating incentive structures in the value‐in‐use delivery. Our process model contributes to the literature and practice on business model innovation by providing a thorough understanding of how alignment of value creation and value capture processes is ensured, whilst paying special attention to their interdependence and the interactions between provider and customer.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Value Creation and Value Capture Alignment in Business Model Innovation: A Process View on Outcome‐Based Business Models

Sjödin¹,

Parida²,

Jovanovic³

et al. 2020

J of Product Innov Manag

301

184

View full text Add to dashboard Cite

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“…Although the search strategy includes a potentially broader scope of journals than those that are immediately associated with service research and the recent literature reviews therein (Keating et al, 2018;Raddats et al, 2019), action research has already gained a position in fields related to service research, in which the journal titles are associated with fields such as healthcare (Meyer, 2000) and operations management (Coughlan and Coghlan, 2002); the inclusion of these fields will strengthen the review. In addition to the main search, a list of service research-based journals ("service") were searched for "action research" in all search fields, resulting in five additional papers included ( Figure 1).…”

Section: Literature Review Approachmentioning

confidence: 99%

Service action research: review and guidelines

Elg

Gremyr

Halldórsson

et al. 2020

JSM

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Purpose Conducting research that is both practice- and theory-relevant is important for the service research community. Action research can be a fruitful approach for service researchers studying the transformative role of service research and wanting to make contributions to both the research community and to practical development. By exploring the current use of action research in service research, this study aims to make suggestions for enhancing the contribution to theory and practice development and to propose criteria for research quality for action research in service research. Design/methodology/approach This study builds on a systematic literature review of the use of action research approaches in service research. Findings The study makes three main contributions. First, it posits that any action research project needs to consider the four elements of problem identification, theorization, creating guiding concepts and intervention. Second, based on these elements mirrored in service action research, it outlines and analyzes three approaches to action research (i.e. theory-enhancing, concept developing and practice-enhancing). Third, it suggests a move from instrumental to a more conceptual relevance of the research and elaborates on the criteria for research quality. Originality/value This study contributes to the understanding of how action research may be applied for conducting high-quality collaborative research in services and proposes measures to enhance research quality in action research projects focusing services.

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“…For all five sub-samples, the results were the same as when using the full sample. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 (Kowalkowski et al, 2011;Gebauer et al, 2013) and has not dwelled sufficiently upon inter-firm relations with external service providers (Raddats et al, 2019). However, close relationships with providers of product-related services and other exchange partners in a manufacturer's business network are claimed to be a powerful resource to mobilize value creation and adapt product-service offers to customer needs (Windahl and Lakemond, 2006;Bastl et al, 2012;Gebauer et al, 2013;Jaakkola and Hakanen, 2013;de Vries et al, 2014;Zarpelon Neto et al, 2015).…”

Section: Robustness Testsmentioning

confidence: 99%

“…The study makes several contributions. First, it responds to the limited attention given to inter-firm relationships in the servitization literature (Raddats et al, 2019). To these authors'…”

Section: Introductionmentioning

confidence: 99%

Service providers and firm performance: investigating the non-linear effect of dependence

Benedettini

Neely

2019

JOSM

Self Cite

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1 Service providers and firm performance: investigating the non-linear effect of dependence Abstract Purpose -Servitized manufacturers can leverage close relationships with external providers of product-related services to mobilize value creation and improve the responsiveness of their offerings to customer needs. This paper investigates the economic link between the relational embeddedness of external service providers, as arising from the key dimension of dependence, and firm performance.Design/methodology/approach -The study evaluates financial statement data pertaining to 190 dyadic relationships of servitized manufacturers with service providers operating in downstream channels and accounting for more than 10 per cent of their revenue.Findings -The results indicate that service providers' dependence has an inverted U-shaped relationship with manufacturers' return-on-assets (ROA), via non-linear effects on return-onsales (ROS) and asset turnover (ATO). The results therefore suggest that the observed Ushaped relationship for ROA is driven by diminishing returns of dependence in terms of both differentiation ability and operational efficiency. Research limitations/implications -Future research could examine other dimensions of embeddedness, as well as contingency factors that may influence the embeddednessperformance relationship.Practical implications -The study conclusions suggest that managers of servitized firms should foster the embeddedness of external service providers, but they should also be careful to maintain an adequate level of dependence to maximize benefits and minimize liabilities.Originality/value -The study adds to the limited research delving into inter-firm relationships between servitized manufacturers and external service providers. It empirically demonstrates the economic effects of service providers' dependence-based embeddedness, challenging the general assumption about a monotonic positive effect of relational embeddedness.

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Servitization: A contemporary thematic review of four major research streams

Cited by 347 publications

References 152 publications

Value Creation and Value Capture Alignment in Business Model Innovation: A Process View on Outcome‐Based Business Models

Value Creation and Value Capture Alignment in Business Model Innovation: A Process View on Outcome‐Based Business Models

Service action research: review and guidelines

Service providers and firm performance: investigating the non-linear effect of dependence

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