The innovation antecedents behind the servitization–performance relationship

Abstract

Servitization allows manufacturing firms to differentiate themselves from rivals and become more competitive. Scholars have studied the service paradox, but analysis of the relationship between servitization and firm performance has provided inconclusive results. In terms of the antecedents that influence this relationship, the literature has tended to focus on firm and product characteristics but not on companies' innovative behavior. This article probes the relationship between servitization and firm performance by focusing on two forms of innovation (technological and open) that may exert an influence. The study draws on the resource‐based view literature to explain the role of interactions between technological innovation, service innovation, and open innovation in enhancing firm performance. Longitudinal empirical analysis was conducted with a sample of Spanish industrial firms for the period 2010–2016. Two time‐lagged models were built and analyzed. The results show that technological innovation influences servitization. This relationship is moderated by open innovation. Servitization mediates the relationship between technological innovation and firm performance. The findings contribute to the literature on servitization and innovation management. Innovation is posited as an antecedent to the service paradox. Products, services, and open innovation should be considered when firms design innovation strategies to improve their performance. Such innovation strategies should lead to an increase in servitization. Service innovation should be supported by open innovation to strengthen technological innovation potential.

Unlocking agility: Trapped in the antagonism between co-innovation in digital platforms, business analytics capability and external pressure for AI adoption?

“…Competitive advantage refers to a superior level of value creation or customer satisfaction relative to competitors (Peteraf, 1993). From this theoretical perspective, CO enables the creation of competitive advantages in two ways: (1) by obtaining key resources from external sources, such as data and knowledge (Bresciani et al ., 2021); and (2) by combining external and internal resources in unique ways through collaboration with external Allies (Nguyen et al ., 2023), which makes the company's response to environment demands inimitable and non-substitutable (Ashrafi et al ., 2019; Martín-Peña et al ., 2023).…”

Configurations for emerging market firms to achieve a high-level servitization strategy: evidence from Chinese manufacturing firms

“…2.2 Literature review 2.2.1 Servitization level. Servitization refers to the practice of manufacturing firms regularly augmenting services to the products they offer, and thus, these firms can differentiate and improve their value propositions and ultimately obtain competitive advantages (Vandermerwe and Rada, 1988;Martin-Pena et al, 2023). A high-level servitization strategy concerns whether the synergy effect between products and services is generated; therefore, servitization firms in emerging markets have a competitive advantage (Choo et al, 2021).…”

The moderating role of technological collaboration in the relationship between absorptive capacity and servitization: an open innovation approach in high-tech industries

“…External sources also differ in terms of how easily that knowledge can be accessed and in the strength of this interaction (Brunswicker and Vanhaverbeke, 2015). Martín-Peña et al . (2023) study technological collaboration and servitization through time-lagged models.…”

“…(2023) introduced the idea of the direct effect of open innovation on what they denote treble innovation (product, process and digital servitization). Martín-Peña et al . (2023) clarify the cause-effect relationship between technological collaboration and servitization, using time-lagged models.…”

“…In this context, there are research opportunities to further understand the role of innovation activities (through absorptive capacity and open innovation) as antecedents in service innovation in manufacturing firms (Bustinza et al, 2019;Mart ın-Peña et al, 2023). The identified gaps could then be addressed.…”