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One step at a time: Sequence and Dynamics of Service Capability Configuration in Product Firms
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.). Universidad Politécnica de Madrid.ORCID iD: 0000-0001-8542-1848
ESADE Business School.ORCID iD: 0000-0002-1628-2634
ESADE Business School.ORCID iD: 0000-0003-3689-7254
(English)Manuscript (preprint) (Other academic)
Abstract [en]

The purpose of this paper is to explore the process of service capability base development in manufacturing firms. While scholars mostly studied capabilities in isolation we argue that it seems to be important to assess how service capabilities are interrelated as well as how a firm orchestrate their development and deployment. Study cross-compare 10 national subsidiaries of one capital equipment manufacturer to explore the effectiveness of their service capability base development processes. Results suggest that successful organizations opt for a sequential development of three service capability clusters, which we subsequently label the ‘presence’ (first), ‘progress’ (second) and ‘process’ cluster (third). Furthermore, our cases suggest that less successful organizations either fail to fully develop one or more of these capability clusters; they develop them simultaneously or in a different sequence. The understanding of the process may assist the decision makers to prioritize activities and gradually invest in service business.

Keywords [en]
Servitization, Capability configuration, Capability clusters
National Category
Business Administration
Research subject
Industrial Economics and Management
Identifiers
URN: urn:nbn:se:kth:diva-227273OAI: oai:DiVA.org:kth-227273DiVA, id: diva2:1204140
Note

QC 20180525

Available from: 2018-05-07 Created: 2018-05-07 Last updated: 2018-05-25Bibliographically approved
In thesis
1. Navigating Manufacturing Firms to Service-led Business Models
Open this publication in new window or tab >>Navigating Manufacturing Firms to Service-led Business Models
2018 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis tackles an increasingly popular phenomenon – servitization of manufacturing – a growth opportunity for industrial firms through a service-led business model. However, implementing a servitization strategy in industrial firms triggers multifaceted challenges and requires further research.The thesis builds on extensive studies of world leading multinational capital equipment manufacturers that develop a successful service business model.

The dissertation builds on three closely interconnected studies. The first study is an in-depth exploratory case study of a Swedish industrial firm by cross-comparing two servitization initiatives—one that was highly successful, and one that was less so. The second study juxtaposes 10 worldwide subsidiaries of the same Swedish industrial firm to compare and contrast how the servitization process unfolded. This study focuses on the management of service capability development, as well as the management of emerging tensions between the product business units and service business units. The third study extends the research scope by analyzing four industrial firms that successfully developed advanced services (e.g. outcome-based contracts).

This thesis contributes to the servitization literature and business model literature by demarcating three business model archetypes for industrial firms: product business model, service business models and outcome business model. This thesis unpacks the content of the business model elements that underpins business model archetypes as well as the configuration and the relationship between the business model elements.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2018. p. 90
Series
TRITA-ITM-AVL ; 2018:13
Keywords
servitization, service transition strategy, service business models, outcome-based contracts
National Category
Business Administration
Research subject
Industrial Economics and Management
Identifiers
urn:nbn:se:kth:diva-227275 (URN)978-91-7729-770-3 (ISBN)
Public defence
2018-06-01, F3, Lindstedtsvägen 26, Stockholm, 14:00 (English)
Opponent
Supervisors
Note

QC 20180509

Available from: 2018-05-07 Created: 2018-05-07 Last updated: 2018-05-09Bibliographically approved

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