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Solutions in business networks: Implications of an interorganizational perspective
Abstract
Based on the combination of an interorganizational perspective and a processual view of solutions, this paper analyzes the provisioning of solutions in business networks. Drawing on a case study in a transportation industry setting, the interdependencies between solutions are uncovered. The case illustrates how 1) firms are simultaneously involved in the provisioning of multiple solutions, 2) firms take on multiple roles in the provisioning of solutions in the business network, and 3) solutions are subject to interdependencies via connected relationships and thus form “networks of solutions.” The paper concludes that interdependence among solutions is a significant characteristic, adding to previous research on solutions. Consequently, it is suggested that firms' interaction with various parties in the provisioning of solutions needs considerable managerial and theoretical attention.
... However, the network approach is a minority within the servitization literature. While very few studies adopt a "service network" perspective to servitization (Hedvall, Jagstedt, & Dubois, 2019;Ziaee Bigdeli, Bustinza, Vendrell-Herrero, & Baines, 2018), a recent review of servitization research calls for more research on the service network's perspective, "examining servitization strategies and outcomes at the relationship-level unit of analysis" (Faramarzi, Worm, & Ulaga, 2023, n. research direction 3). Faramarzi and colleagues echo previous calls to understand the effects of servitization on third parties (Ulaga & Reinartz, 2011). ...
... (5) Restructuring competition through actor roles. An inter-organizational perspective on solutions in business networks ( Hedvall et al., 2019) A qualitative, in-depth study of a truck OEM embedded in a wider network of firms. ...
... This study extends previous research on servitization in service networks (Hedvall et al., 2019;Parida & Jovanovic, 2022;Reim et al., 2019) by demonstrating that servitization is a network phenomenon that can lead to the emergence of adversarial networks. As a business strategy, servitization requires managing interdependencies and differing interests between manufacturers and service network firms. ...
This study examines the adversarial dynamics that emerge when service firms assess that manufacturers' servitization initiatives pose an existential risk to their survival as independent organizations. Adopting an industrial networks perspective, this investigation explores how service firms respond to manufacturers' servitization initiatives that threaten to disintermediate them. The study explores how Maintenance, Repair, and Overhaul firms (MROs) in the aviation industry respond to servitization initiated by Original Equipment Manufacturing firms (OEMs). Empirically, interviews with 49 experienced managers were conducted in the service network to understand their strategic pathways. Their responses reveal that MROs can resist servitization by strengthening their relationships with airlines or developing service-led advanced services. Alternatively, MROs can support OEMs' servitization by becoming subcontractors or licensed resource integrators. This study shows that servitization depends on the orchestration of service network actors with differing interests, making it contingent and multilateral.
... Rights reserved. capability to organize and combine the resources of business partners embedded in a business network (Hedvall et al. 2019). In order to access, exchange, and combine external service knowledge, capabilities, and resources, close collaboration with external partners in a business network is necessary (Fliess and Lexutt 2019;Marilungo et al. 2016). ...
... This study contributes to the existing literature by extending the concept of strong customer relationships to the domain of co-creation activities in SD logic, highlighting its pivotal role in driving service innovation (Mitręga and Katrichis 2010;Mina et al. 2014;Lusch and Nambisan 2015). Furthermore, while prior studies have identified the benefits of leveraging external resources from business partners embedded in a business network to provide integrated solutions (Hedvall et al. 2019) and successful innovation outcomes (Fisher and Qualls 2018), our findings further demonstrate the positive relationship between establishing a strong bond with business partners and enhancing the performance of service innovation. In short, this study extends relational view theory (Dyer and Singh 1998) in the context of open innovation and offers new insights that customer and business partner co-creation can improve service innovation via the mediating roles of the customer relationship bond and the business partner relationship bond. ...
In this study, we investigate the influence of customer and business partner co-creation on service innovation across 106 IT and 130 finance companies. Through the lens of open service innovation and service-dominant logic, the findings indicate that co-creation strengthens relationship bonds and increases the value of external knowledge, positively impacting service innovation. Furthermore, the present study identifies industry type (manufacturing vs. service) as a moderating factor in the relationship between antecedents and service innovation performance. By reevaluating the roles of external participants, this research offers valuable insights into service innovation, providing guidance for managers to effectively harness external cocreators.
... The idea of innovation in today's times cannot be compared to technology-based automation that exists purely for the purpose of obtaining economies of scale. Contemporary innovation is based on the convergence of diverse and disconnected pieces, which can deliver exponential effects through convergence and network economics (Hedvall et al., 2019;Li et al., 2024;Reim et al., 2019). Convergence innovation is characterized by a higher level of flexibility compared to automation, as it utilizes the quantum force of fusion among many elements, such as things, concepts, individuals, roles, tools, systems, sectors, and society (Lee, 2018). ...
... Convergence innovation is characterized by a higher level of flexibility compared to automation, as it utilizes the quantum force of fusion among many elements, such as things, concepts, individuals, roles, tools, systems, sectors, and society (Lee, 2018). Convergence Innovation has the ability to serve as a fundamental approach that is both sustainable and enduring, so enabling the generation of value and facilitating the pursuit of a smart future in which all stakeholders, including individuals, environment and overall society prosper (Ali et al., 2021;Hedvall et al., 2019;Lee & Trimi, 2018). The convergence of various technologies can be extensively utilized to address challenging situation (Hunt, 2021). ...
This paper explores the potential of Convergence Innovation (CI) as an effective catalyst for dealing with the COVID‐19 pandemic and devising a trajectory toward a sustainable post‐crisis future. It offers novel perspectives on sustainable innovation approaches that can enhance organizational performance and extend beyond it. The paper makes significant contributions to both the theoretical and practical aspects of innovation. It illustrates the impact of market forces in the context of the Fourth Industrial Revolution (4IR) and Digital Technologies (DT), highlighting the significance of sustainable innovation for organizational prosperity and individual welfare. Convergence Innovation is explained as a self‐regulating ecosystem that promotes and goes beyond value creation. Different technologies in the ecosystem enhance CI's sensing capabilities for fluctuations in market forces and facilitate the transmission of data for decision‐making. The study recommends splitting off the S‐curve of innovation and the life cycle of competitive intelligence, as the S‐curve of CI tends to be shorter in the digital age. This paper provides managers with a new framework for thinking about innovation and its role in achieving sustainable business success. By embracing CI, managers can create more agile and adaptable organizations that are better positioned to navigate the complex and rapidly changing world of the digital age.
... Обеспечение стратегического преимущества. Компании, реализующие стратегию сервитизации, получают возможность повысить конкурентоспособность за счет формирования более ценного предложения для клиента [Ulaga, Reinartz, 2011;Levihn, Levihn, 2016;Hoeber, Schaarschmidt, 2017;Canedo, Junior, Helal, 2018;Frank et al., 2019;Garcia Martin, Schroeder, Ziaee Bigdeli, 2019;Hedvall, Jagstedt, Dubois, 2019;Niu, Jiang, Wang, 2019;Dewi, Pittayachawan, Tait, 2020]. Особенно важно обеспечить стратегическое преимущество компании, что позволит ей поддерживать взаимоотношения с клиентами в течение длительного времени [Adrodegari, Saccani, 2017;Hsuan et al., 2017;Luz Martín-Peña, Díaz-Garrido, Sánchez-López, 2018;Frank et al., 2019;Rajala et al., 2019]. ...
... Рост организационной эффективности. Компании могут более эффективно использовать собственные ресурсы благодаря сервитизации [Sakyi-Gyinae, Holmlund, 2018;Hedvall, Jagstedt, Dubois, 2019;Niu, Jiang, Wang, 2019;Plouffe et al., 2019;Dewi, Pittayachawan, Tait, 2020]. Более быстрая адаптация к меняющимся требованиям клиентов способствует снижению рисков и повышению востребованности предложений компании [Canedo, Junior, Helal, 2018;Garcia Martin, Schroeder, Ziaee Bigdeli, 2019;Kohtamäki et al., 2019;Kryvinska, Kaczor, Strauss, 2020]. ...
The article defines the concept of “servitization”, identifies its features, and outlines the antecedents and consequences of servitization for the company. The analysis of academic literature on the concept of servitization was used as a research method. The author presents two approaches to the definition of the concept of “servitization”: the transformation process and the innovation of the business model. The former reflects the need for significant changes, while the latter draws attention to the change in the logic of creating, transferring and receiving value. The proposed definition of the concept of “servitization” adopts the “transformation process” approach, focuses on the formation of a solution and the orientation of a solution to achieve a result. The study highlights the features of servitization: the combination of goods and services, service orientation, focus on meeting customer needs, creating competitive advantages, commitment to the results, establishing relationships with customers, sharing knowledge, increasing the value of the offer and its differentiation, enhancing the productivity of a company. Servitization antecedents groups include improving competition, technological change, the development of international trade and changing consumer trends, while consequences groups include providing a strategic advantage, improving financial condition, increasing organizational efficiency, and developing customer relationships.
... Bask (2001, p. 473) advocates that "all three relationships should be covered" but without specifying the properties of these relationships. More recent publications in the logistics literature also show the value of three-way relationships in BSL triads on logistics efficiency (Hedvall et al., 2016;Hedvall et al., 2019;Andersson et al., 2019). The study of Wang et al. (2016, p. 117) shows that, despite that the fundamental logic of LSP is mediation in terms of performing a distributive service, "LSPs create value by taking advantage of being connected and exploring the presence of various forms of interdependence." ...
... Therefore, in the "lean" LSP triad, all three actors are equally involved in the logistics decision-making process. The idea of a balanced BSL triad, where the interests of all three actors are taken equally into account, goes in line with logistics studies on triads (Hedvall et al., 2016;Hedvall et al., 2019), which emphasize the importance of balanced relationships in a BSL triad and with IMP study of Wang et al. (2016), who suggest that LSPs take a "collaborative perspective" toward buyer and supplier in their strategy and not just the role of a mediator. By being directly connected to the buyer and supplier, the LSP can plan its deliveries more efficiently. ...
Purpose –This paper aims to develop the existing theoretical concept of a triad by informing it with the activity-resource-actor (ARA) model in a new empirical context of lean management (LM).
Design/methodology/approach –This conceptual paper draws on the industrial marketing and purchasing (IMP) school of thought and the ARA model as theoretical lenses to inform research on triads in an LM context.
Findings –The authors find that closed buyer-supplier-supplier (BSS) and buyer-supplier-logistics service provider (BSL) triads, which we call “lean triads,”had a positive impact on LM. The authors display the drivers for closure –LM improvements (Table 2) and the properties of these “lean triads”(Figure 3).
Research limitations/implications –The paper focuses only on closed triads and is based on previous empirical studies.
Practical implications –The authors demonstrate to lean managers the drivers for connecting their partners in BSS and BSL triads and show the importance of developing relationships on three layers between all three actors in both triads to improve a firm’s lean performance.
Originality/value –The authors contribute to the discussion within the IMP school of thought on the value of triads by enriching the understanding of a triad concept with the ARA model, which compounds a concept of a multilayered triad in an LM context.
Keywords - Multilayered triads, Lean management, Actor bonds, Resource ties, Activity links
Paper type - Conceptual paper
... With the increasing interest in business networks, there is also an increasing interest in the notion of "network pictures" among researchers in the field of business-to-business marketing (Henneberg, Mouzas, & Naude, 2006). In recent years, researchers have studied business networks to promote the development of society in relevant areas, including business continuity-inspired resilient supply chain network design (Namdar et al., 2020), a radical constructivist approach to boundaries in business network research (Guercini & Medlin, 2020), and implications of the interorganizational perspective of solutions in business networks (Hedvall, Jagstedt, & Dubois, 2019). ...
... Considering collaborative relationships in organizational networks, the traditional issues in the strategy and innovation literature are strategic alliances, technology licensing arrangements, joint ventures, and marketing partnerships. In today's big data and digital era, the method and aim of organizational networks are different from past phenomena (Hedvall, Jagstedt, & Dubois, 2019). More advanced technologies, including artificial intelligence, Internet of Things, and big data analytics, have allowed organizations to quickly sense the trajectory of market changes and identify candidate organizations as network partners (Afuah & Tucci, 2013). ...
Scientific research on service networks for sustainable business (SN-SB) and its impact on business and economics has been growing in recent years. The first document was published in 1968, and the SN-SB research has lasted over half a century. This paper offers a comprehensive bibliometric analysis of the academic literature published between 1968 and 2019 with regards to the SN-SB research in 2,366 publications from Web of Science. By applying different bibliometric analyses, such as performance analysis, cooperation analysis, co-occurrence analysis, burst detection analysis, and timeline view analysis, we have presented the fundamental characteristics of these publications, and identified the most influential countries/regions, institutions, and authors, as well as the evolution of the keywords these years. More discussions including popular issues in current study, challenges and avenues for future research, implications, and limitations are conducted to address the existing gaps in knowledge. This paper helps in understanding the evolution of the SN-SB research from the perspective of the bibliometric and inspires researchers to think from multiple aspects in this field.
... Researchers placed that the linear perspective on the interconnected firm, one which is contended to be lacking, dismisses the normal manners by which IFR in the SNS are shaped and advanced [Hedvall, Jagstedt, Dubois, 2019]. In this manner, it is contended that the SN now contains a blend of progressively formal and informal IFR, along these lines making a substantially more perplexing network structure [Hedvall et al., 2019]. ...
... Researchers placed that the linear perspective on the interconnected firm, one which is contended to be lacking, dismisses the normal manners by which IFR in the SNS are shaped and advanced [Hedvall, Jagstedt, Dubois, 2019]. In this manner, it is contended that the SN now contains a blend of progressively formal and informal IFR, along these lines making a substantially more perplexing network structure [Hedvall et al., 2019]. This unavoidably makes a perplexing structure of connections between the elements in the SNS. ...
... In the current digital age, innovation is not equivalent to technology-enabled automation for the economies of scale, as demonstrated by the industrial paradigm of mass production pioneered by the Fordism in the early 20th century (Hakansson & Ford, 2002). Today, innovation can be based on convergence of seemingly heterogeneous and unrelated things that can create an exponential outcome based on the economies of convergence and network (Coolican & Jin, 2018;Hedvall, Jagstedt, & Dubois, 2019;Metcalfe, 2013;Reim, Sjodin, & Parida, 2019). Innovation based on the exponential effect of convergence, which we label as convergence innovation (CI) in this paper, is much more dynamic than automation as it leverages the quantum force of fusion of various objects, ideas, people, functions, technologies, organizations, industries, and societies (Lee & Lim). ...
... CI would be a sustainable core competence for not only creating value but also pursuing a smart future where people, society, and the environment all flourish (Hedvall et al., 2019;Lee & Lim, 2018;Lee & Trimi, 2018). Although it was not labelled as CI, convergence of different objects and technologies has been widely applied to manage critical issues. ...
Sustainable innovation is imperative for organizational survival and success in the turbulent market environment of the digital age, especially more so in the current COVID-19 pandemic crisis. This paper presents convergence innovation (CI), powered by the exponential fusion effect of the various objects, technologies, ideas, and strategies, as a new sustainable core competence of organizations. We present the concept of CI including its autonomous ecosystem enabled by advanced technologies, unique life cycle features, relationships with other innovation approaches, and its purpose of value creation for the stakeholders and beyond (for the greater good). The paper also explores how CI can be a catalyst for managing the current COVID-19 pandemic and charting the path to post crisis. The study makes contributions to both innovation literature and to practicing managers with new insights on sustainable innovation strategies for organizational performance and beyond.
... A firm is always embedded in a service ecosystem involving other actors such as suppliers, customers, partners, and competitors. Most often, the interconnected firms also display interdependencies, both with respect to operations, offerings, and business models (Hedvall et al., 2019). Hence, when firms develop and implement green services that allow for improved environmental sustainability, they must also consider what this means from an "ecosystem perspective." ...
Services are key enablers in the transformation toward the circular economy because they provide the prerequisites for sustainable value co-creation. Services in the circular economy include “traditional” offerings such as maintenance and remanufacturing, but also newer types of services in the sharing economy. This chapter discusses three sustainable value co-creation activities in more detail: (1) extending product life, (2) dematerialization, and (3) replacing service systems. It also provides illustrations of services that support sustainable value co-creation and, ultimately, improved environmental sustainability. The chapter concludes by highlighting key challenges for firms and customers involved in sustainable value co-creation activities.
... The growing spotlight on business relationships (Håkansson and Snehota, 1995;Hedvall et al., 2019;Lasrado et al., 2023) has resulted in the development of several technologies and tools to manage and understand them better. From this standpoint, Customer Relationship Management (CRM) has been deemed a robust approach when translated into software to support firms in developing customer-centric business relationships with buyers and other stakeholders (Buttle, 2004;Payne and Frow, 2016). ...
... Finally, business networking is an activity that can provide SMEs with additional resources that they would not otherwise have (Guercini & Ranfagni, 2016;Hughes et al., 2019) which in turn enhance a venture's chances of success and leads to business growth (Ferguson et al., 2016;Ritter and Gemünden, 2003;Venkataraman and Van de Ven, 1998). Seen in this light, the matchmaking program enables SPX member companies to strengthen and improve their dynamic capabilities in a competitive business environment in the sense of Hedvall et al. (2019), and Teece (2018). The same applies to technical and technological skills related to managerial innovation, which is a strategic intention that builds competitive advantages (Gomez, 2016). ...
Is entrepreneurial support a performance enhancer for SMEs? The question of the link between support and performance has been raised in the context of developed countries. What about developing countries where support is an emerging process? This research aims to analyze entrepreneurial support and learn about its contribution to the performance of Cameroonian SMEs through the fsQCA (fuzzy set qualitative comparative analysis) method. This would allow us to explore a notion such as equifinality in the field of support. Based on the Subcontracting and Partnership Exchange (SPX), we selected six variables that influence the performance of 120 Cameroonian SMEs in the industrial sector. We demonstrate how the fsQCA completes the correlational methods and offers a finer understanding of the performance of the entrepreneurial support. We postulate that various combinations impact performance and that the interaction between certain combinations is necessary, but not sufficient to achieve performance. This analysis yields three configurations, with the particularitý that the CSR program is an irrelevant condition contributing to poor SME performance. Furthermore, the study provides meaningful implications for entrepreneurs, managers, and entrepreneurial support indicating combinations of factors that lead to an increase in firm performance The recommendations made aim to focus on supports deemed more effective. On a theoretical level, the use of fsQCA complements the knowledge derived from traditional analytical methods.
... To understand these issues further, Hedvall, Jagstedt, and Dubois (2019) used the ARA model to highlight the importance of buyer and supplier firms managing their various roles and relationships in the network in which it participates. What is also clear from the range of studies, which have used ARA in this field (Hedvall et al., 2019;Kot & Leszczyński, 2020;Pardo et al., 2022), is the usefulness of the model in analysing, critiquing and restructuring our understanding of B2B relationships amidst the backdrop of disruption from technology adoption. ...
Artificial intelligence (AI) in industrial marketing has seen significant research attention through various theoretical lenses with an emerging thread examining the dark side effects of AI. Thirty-four semi-structured interviews were conducted with buyers and suppliers of AI marketing solutions to investigate the consequences of AI 'dark forces' on B2B relationships. We posit AI as a new actor that has blurred the lines of the actors-resources-activities model. Findings show AI is now considered a new actor within B2B networks wielding dark force consequences such as algorithmic gatekeeping, which initiates dehumanization effects. In addition, AI is reliant on access to datasets which drives up resource costs. A lack of accountability of AI marketing solutions leads to opportunistic behaviours compromising actor relationships. Our conceptual model maps our understanding of the dark force consequences underpinning theoretical and managerial implications and recommendations for increased awareness and mitigation of dark forces.
... Despite an increasing focus on the ecosystem and the capabilities required for the development of service solutions (e.g., Friend & Malsche 2016;Hedvall et al., 2019), servitization literature has tended to focus on the manufacturer's perspective and has rarely focused on interactions between the B2B buying centers (BCs) and selling centers (SCs) involved. Researchers have covered: supplier adaptation (Bastl et al., 2012); under-utilization of end-users in the process (Sandin, 2015); demonstrating value, and trust building (Schaefers et al., 2021); and relational processes for solution provision (Töllner et al., 2011). ...
... The ARA-framework is well-known in network management studies, and it has been widely utilised over the years, for example, when describing the business network of the Polish furniture industry (Ratajczak-Mrozek and Herbeć 2013) or the Japanese seafood distribution system (Abrahamsen and Håkansson 2012). It has been applied when describing how actors act as key drivers in developing networks after industrial restructuring in Sweden (Lundberg et al. 2016), how company-specific resources and activities influence the relationships of industrial manufacturers in Japan (Choi and Hara 2018) and how servitisation and provisioning of solutions are embedded in business networks in timber transportation (Hedvall et al. 2019). ...
Numerous phenomena, such as sustainability challenges and the increasing importance of knowledge and digitalisation, have tremendous impacts on the global socio-economic system. These phenomena affect the dynamic and complex business environment where different actors from various sectors interact with each other. Responding to the phenomena and changes in the business environment calls for a systemic change in the ways that value-creating activities are performed. One suggested systemic change is a transition to a sustainable circular bioeconomy. Changes in the business environment pressure established business sectors, such as the forest sector, to reconfigure their networks and value creation logic, i.e., the ways in which actors co-create value. In this dissertation I investigated how the value creation logic of the forest sector changes when entering the sustainable circular forest-based bioeconomy. The research design followed a qualitative theory-guided interdisciplinary case study strategy. I analysed scientific and non-scientific documents to determine the past and currently occurring adaptations within the forest industry’s value creation logic. I conducted interviews to identify the possible future value creation logic of forestry service providers and the readiness of forest owners to respond to the occurring changes. According to the findings, the forest sector’s value creation logic is incrementally changing towards holistically sustainable, collaborative and cross-sectoral value co-creation logic. The sector has been able to reconfigure its networks and value creation logic in the past and it seems that the sector’s actors have understood the importance of cross-sectoral collaboration and intangible resources in the sustainable value-creating activities. They have acknowledged that their attitudes and actions will affect the future value creation within the sector. To reach holistic sustainability, actors need to consider the whole forest ecosystem as a capital and a resource base from where value and benefits for the common good are co-created in a forest-based sector.
... They presented a contingency model to accommodate four servitisation strategies: service extension, service benchmarking, digitalisation, and customer co-creation. Thus, most servitisation literature combined process view with inter-organisational perspective discussing the manufacturing firm's efforts in implementing CE principles co-create and deliver the value-propositions (Hedvall et al., 2019). ...
Unmanned Aerial Vehicle (UAV) or drone technology is developing quickly with various applications in military,
public safety, surveillance, delivery, communications and cinematography. With the growing interest from academia,
industry and government, the use of UAVs in daily life is only going to increase. Another emerging technology is 5G,
which offers significant performance improvements over 4G. As 5G develops, the technology is being experimented
for several use-cases including UAV networks. 5G offers high speed and ultra-low latency, which makes it suitable
for autonomous UAV systems. This research focuses on analysing the security challenges, attacks, risks and
threats associated with deploying an autonomous drone highway along the Manchester Ship Canal (MSC).
This research focuses on analysing the security challenges, attacks, risks and threats associated with deploying an
autonomous drone highway along MSC. Several attacks capable of disrupting communications, stealing data and
hijacking drones were identified. Existing security techniques were also discussed. This information was factored into a
threat model and risk assessment for the drone highway. Furthermore, a drone highway simulated model was developed
using the NS-3 simulation tool while discussing available simulation tools, and their capabilities and limitations.
The research identified several techniques that can be used by attackers to disrupt operations or hijack
drones. Security controls were recommended to mitigate these risks. In this paper, we have also identified
the need to achieve a trade-offs between fulfilling security requirements and maintaining efficient drones
network since any implemented security functionality adds an overhead to the drones communications. A
minimal simulation of the drones highway was developed using the NS-3 simulation tool and the simulation
results showing the network throughput, delay and signal quality were presented and discussed.
This research offers a better understanding of the simulation environment of UAVs and how it applies to the proposed Manchester Ship Canal drone highway. Furthermore, it can be used as a
framework in designing other autonomous drone-based transport systems around the UK.
... One of the most important elements in an entrepreneur's activity is establishing and developing inter-organizational cooperation (e.g., BarNir & Smith, 2002;Ekanayake et al., 2017;Hajderllari, 2015). Inter-organizational cooperation (COOP) has been the subject of researchers' interest for many years (e.g., Anderson, 2008;Gulati, 1999;Hedvall, Jagstedt, & Dubois, 2019;Tsai & Ghoshal, 1998;Zaefarian, Forkmann, Mitręga, & Henneberg, 2017). ...
Social relationships play an important role in organizational entrepreneurship. They are crucial to entrepreneurs' decisions because, despite the bleeding-edge technological advancements observed nowadays, entrepreneurs as human beings will always strive to be social. During the COVID-19 pandemic many companies moved activities into the virtual world and as a result offline Social relationships became rarer, but as it turns out, even more valuable, likewise, the inter-organizational cooperation enabling many companies to survive. This chapter aims to develop knowledge about entrepreneurs' SR and their links with inter-organizational cooperation. The results of an integrative systematic literature review show that the concept of Social relationships, although often investigated, lacks a clear definition, conceptualization, and operationaliza-tion. This chapter revealed a great diversity of definitions for Social relationships , including different scopes of meaning and levels of analysis. The authors Social Relationships: The Secret Ingredient of Synergistic Venture Cooperation Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this chapter (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode. 52 KATARZYNA CZERNEK-MARSZAŁEK ET AL. identify 10 building blocks and nine sources of entrepreneurs' Social relationships. The authors offer an original typology of Social relationships using 12 criteria. Interestingly, with regard to building blocks, besides those frequently considered such as trust, reciprocity and commitment, the authors also point to others more rarely and narrowly discussed, such as gratitude, satisfaction and affection. Similarly, the authors discuss the varied scope of sources, including workplace, family/friendship, past relationships, and ethnic or religious bonds. The findings of this study point to a variety of links between Social relationships and inter-organizational cooperation, including their positive and negative influences on one another. These links appear to be extremely dynamic, bi-directional and highly complex.
... The phrase "networks form of business" has been applied regularly to describe inter-company management that is typified by natural or casual community systems (Hedvall et al., 2019). There is a say this kind of inter-company organization as network control as it represents a "distinctive structure of organizing financial interest" which distinguishes it with markets and pyramids (Raab, 2019). ...
... • theory (among others: Castells, 2007;Falencikowski, 2015;Mikołajek-Gocejna, 2011), • typology (Czakon, 2012), • business model (Czakon, 2015b;Falencikowski, 2015;Hedvall, Jagstedt, and Dubois, 2019;Niemczyk, 2016), • formation (Cabral, 2015;Dodourova and Bevis, 2014;Jussila, Mainela, and Nätti, 2016;Manning, 2017; Mikołajek-Gocejna, 2011), • structure (Manning, 2017). ...
This paper deals with the phenomenon of networks in operations research using the example of a selected organization. The main research objective is to analyse and evaluate the network implications in the sector of global design and engineering service providers. In the course of the research, one representative organization in the sector was subjected to research in accordance with the adopted methodology using structured questionnaires. After a literature review, a model of strategic analysis in a network approach was chosen as a starting point for preparing the methodology. The case study clearly showed that the company cannot be classified as a network organization according to the adopted methodology despite the noted network qualities. Therefore, it is legitimate to indicate severe contradictions in the three areas examined: environment, strategy and organization. Future research could be twofold: related to organizational structures and strategies evolution as well as the incubation of more accurate research methods
... In addition, companies are no longer able to deliver all relevant values in a business model independently. It is therefore necessary to establish new forms of collaboration within ecosystems [40,41]. Consequently, it is necessary to address the question: How does the supporting business model need to be designed in the context of continuous innovation? ...
Due to growing global competition and heterogeneous and short-term changing customer needs, manufacturing companies have to enhance their innovation frequency. In addition, the extension of product life cycles is required to consider the demand of sustainability. In order to face these challenges continuous innovation becomes more important. Although, the importance has already been recognized, challenges for the realization of continuous innovation have not been sufficiently resolved. In this paper the challenges for the realization of continuous innovation are described. Furthermore a systematic and holistic
framework including eight fields of actions is derived, which contribute to the realization of continuous innovation.
... Companies must work jointly with a wide range of partners to combine the underlying technologies, applications, software, and services to ensure an integrated solution. The need for partnerships is intensified by rapidly changing technologies and growing consumer demands with due regard to customizing satisfaction (Hedvall et al., 2019). The best approach for companies is to intensively participate in developing a new landscape of interactions with partners and competitors. ...
This research aims to form a comprehensive methodological approach to assessing the quality of the integrated development of Ukrainian light industry enterprises as a groundwork for effective managerial decision-making. The methodological research toolkit includes developing an integration map, and modeling and forecasting the results of integrated development. This comprehensive evaluation helps to justify the effectiveness of management decisions and increase the quality of integrated enterprise development, as well as their performance as a whole. Based on the formed map of enterprise integration, groups of enterprises were identified: forwards, strikers, defenders, and outsiders. Using integrated development modeling, the potential quality level of a 1% cost increase in integrated development and the volumes of product sales of the surveyed companies was determined with regard to the group distribution for the period up to 2025. A considerable increase in the efficiency of integrated development is provided for the forward companies. It has been found that a high-quality level of the management of integrated development in light industry enterprises requires a longer period of time compared to other groups of enterprises due to the slow pace of reducing the cost of integrated business development.
... In the context of digital servitisation, several business model typologies have been identified based on solution customisation, solution pricing and solution digitalisation (see Kohtamäki et al. 2019 for a detailed description and categorisation). Furthermore, several studies recognise and put forward the idea that the evolution of digitalisation and technology advancement urge companies looking beyond their boundaries and being integrated in a value ecosystem Hedvall, Jagstedt, and Dubois 2019). Digital servitisation as well as smart, connected products are definitely transforming opportunities for value creation in the manufacturing industry. ...
A great interest was devoted to the rise of the Industry 4.0 production model and its impacts. Far less is known about the so-called digital service economy, a multifaceted phenomenon made of a sprawling range of businesses based on digital platforms and redesigning the boundaries of manufacturing towards services. The net socio-economic effects of the digital service economy at the local level are not yet known and difficult to be measured unless the different value creation models it entails are not identified. This paper fills such a gap by separating out, on conceptual grounds, specific value creation models within the digital service economy, each presenting distinctive growth opportunities and threats, and, empirically, measuring their spatial diffusion and coexistence in each European region. The taxonomy of European regions obtained serves future research purposes to assess the expected heterogeneous regional socio-economic effects of the digital service economy and its value creation models.
... Although a number of notable studies within a servitization context on buyer-supplier relationships (e.g., Bastl et al., 2012;Finne & Holmström, 2013;Johnson & Mena, 2008;Saccani et al., 2014) and network perspectives (e.g., Bigdeli et al., 2018;Hedvall et al., 2019) exist, there is a need for further research that addresses the challenges of coordinating an internal and external service partner network for servitizing firms. Previous research has demonstrated that more complex service supply network configurations might be necessary to create value for customers (Chakkol et al., 2014;Windahl & Lakemond, 2006), with some arguing that the " service network represents the missing link between the manufacturer and customers" (Reim et al., 2019, p. 469). ...
... The ARA framework has a strong standing in network research and thus has been widely utilized in many studies over the years, for example, in describing the business network of the Polish furniture industry (Ratajczak-Mrozek and Herbeć 2013) and the Japanese seafood distribution system (Abrahamsen and Håkansson 2012). In addition, in more recent studies, it has been utilized to describe how servitization and provisioning of solutions in the transportation industry is embedded in business networks (Hedvall et al. 2019), how firm-specific resources and tailored activities influence the relationship performance of Japanese industrial manufacturers (Choi and Hara 2018), and how actors operate as key drivers in sensemaking and network development after industrial restructuring (Lundberg et al. 2016). ...
Companies operate in a nested and complex system where global challenges shape their environments and put pressure on business activities. Systemic understanding of the past and ongoing changes within a national industry help to analyze the global influences and identify phenomena that reshape business collaborations. To address this issue in the case of a forest sector, this study constructs a systemic picture of the historical development of the Finnish pulp and paper industryâs business network and analyzes it qualitatively through the Actors-Resources-Activities framework. Books discussing the history of the Finnish forest industry were used as secondary data, which were analyzed with a theory-based content analysis method. The analysis revealed four development phases during which the network has evolved from rather simple one emphasizing cooperation organizations (1st) to a more complex one with stronger roles of the state and individual influencers (2nd), and then emphasizing export and advocacy associations (3rd), before returning to be rather simple, based around three large multinationals and the EU playing an important role (4th). The industry is concerned about securing its key resources, with varying foci. Research and technological innovation activities play an important role together with cooperative interactions. Overall, actors favor a business-as-usual strategy, which is overruled only by a radical change in the operating environment, leading to notable changes in the network. Thus, a suggestion for all actors within the forest sector is that actively detecting and interpreting change signals in the whole environment can help actors in pursuing sustainable activities.
... The authors further state that enterprise networks consist of small business owners and other businesses to acquire and share information and resources. Enterprise networks according to Hedvall et al. (2019) and Guo et al. (2018) are set up to strengthen their dynamic capabilities in a competitive business environment. The survival of enterprises depends on the performance of enterprises which could be strengthening as a result of cordial networks that are associated with its economic growth (Rodrigo-Alarcón et al. 2018); Kohli et al (1993); Narver and Slater (1990). ...
This study examined the impact of dynamic capacities on the performance of food and beverage enterprises in Lagos, Nigeria. The following sub-variables (strategic decision-making capacity, product innovation capacity, strategic flexibility, competitive intensity, technological turbulence, and technological capability) were employed to represent the variable of dynamic capacity. Also, the following sub-variables (sales growth, enterprise survival, enterprise efficiency, and competitive advantage) were employed to represent the variable of enterprise performance. Primary data was used to achieve descriptive and inferential statistics, and the statistics is estimated by the PLS-SEM method which was calibrated on Lisrel 8.70 software. This study found that product innovation, competitive intensity and technological turbulence, technological capability and competitive intensity, and strategic flexibility are critical sub-variables in determining the robustness of dynamic capacities, as they adequately improve increasing sales growth, survival, and sustenance of enterprise into the unforeseeable future, efficiency of enterprise, and competitive advantage of food and beverage manufacturing enterprises, respectively, particularly in this trying period that is evidenced with technological change and competition, among others.
... В зарубежной литературе концепция решения регулярно обсуждается [Plouffe et al., 2019;Rajala et al., 2019;Restuccia, Legoux, 2019;Apollo, 2020;Frost, 2020], тем не менее некоторые вопросы остаются открытыми и требуют дополнительного изучения. Во-первых, ориентация решения на результат часто встречается в консалтинговой литературе и редко в академических публикациях; во-вторых, многообразие определений понятия «решение» позволяет обратить внимание на его признаки и продвинуться в направлении определения, отражающего ключевые особенности решения в разных сферах бизнеса; в-третьих, концепции продажа решений и продажа результатов в литературе часто используются как взаимозаменяемые; в-четвертых, при сопоставлении концепций товара, услуги и решения требуется учет большего количества характеристик; в-пятых, существующие модели решения [Tuli, Kohli, Bharadwaj, 2007;Brax, Visintin, 2017;Hedvall, Jagstedt, Dubois, 2019], как правило, указывают на необходимость удовлетворения клиента, но не акцентируют внимание на создании результата и специфике решаемой задачи, включающей не только проблему клиента, но и ее контекст, а также комплексную потребность клиента. ...
Accelerating digitalization of the economy and changing pandemic-driven consumer trends provide companies with opportunities for a complete customer satisfaction by using solutions. This work aims to consider the formation of a solution as the basis for the servitization of a company. The analysis of academic and consulting literature on solution and servitization concepts was used as a research method. The paper proposes an approach to define the concept of solution as an offer. Two types of sales using solutions have been determined: solution selling and outcome selling. The definition of an outcome-oriented solution is provided. Based on this definition and the key features of a solution, a solution creation model is formed which includes the following components: the key elements and characteristics, the nature of the problem, joint value creation, and outcome orientation. The paper develops a model of the servitization process and compares the categories of goods, services, and solutions taking into account the development of the concept of ecosystems. Researchers can use the findings to build solution models and develop the outcome component of a solution. Practitioners can use the results to make the company transition from selling goods to selling solutions.
... Due to interdependencies and the mechanisms of change and dynamics in the networks (Håkansson & Snehota, 1995;Hedvall, Jagstedt, & Dubois, 2019;Hettich & Kreutzer, 2021), it can be said that it is not only strategy that influences the development of an organization. An organizational network also influences business strategy. ...
PURPOSE: The analysis of the literature shows that the attempts to conceptualize the strategic aspects of the network bring a significant impact on the development of research on organizational networks. This article aims to analyze the new trends in strategic management, and in particular on the possibility of exploring the network approach in strategic management, through the existing literature and the presentation of the new contributions of the following articles published in the current issue. METHODOLOGY: The article is descriptive in character; thus it is based on a literature review and its constructive critics. A narrative literature review was used to present the main assumptions and features of the network approach in strategic management, along with an indication of emerging trends and new directions. Also the identification of theoretical foundations for understanding the processes of strategic change in inter-organizational networks and the proposition of the way to understand network strategy were presented. FINDINGS: The research included in this issue shows that from a network perspective, business strategy plays an important role in guiding the development of individual relationships and networks. Exploring the network approach in strategic management allows one to adopt the category of network strategy, which can be described through the coexistence of cooperation and competition. IMPLICATIONS FOR THEORY AND PRACTICE: Considerations lead to the conclusion that the business strategy must be expressed in terms of potential changes in the network in which the company operates, taking into account its current and selected position in the network. Despite the fact that the current state of research on organizational networks in the theory of strategic management shows that this approach is already quite well established, on the basis of the analysis of research results concerning the conceptualization of strategic aspects of the network, the existing problems and limitations were identified. ORIGINALITY AND VALUE: The main problems related to the exploration of the network approach and the resulting consequences for the definition of the network strategy were indicated. Also, the combination of an organizational and economic approach with the logic of competitive advantage and relational annuity. The demonstration that the network perspective in strategic management allows for a more complete understanding of the strategic behavior of modern enterprises.
... Hence, the network level analysis is needed for complex sets of business exchanges that span the boundaries of the individual firms and relationships. Based on this, scholars argue for a network perspective to be taken on business models (Bankvall, Dubois, and Lind 2017;Hedvall, Jagstedt, and Dubois 2019). The most critical challenges of business seem not to be at a firm level, but rather at a network level (Leminen et al. 2015). ...
Technological development is rapidly having an impact on the road freight transport system. In parallel, there are suggestions for new types of business models to approach the network and complex features of business. In this paper, we raise the question of what this means in the road freight transport business from a truck manufacturer’s perspective. The purpose is to analyse the contents of and developments in networked business models for road freight transport in Sweden with the overall aim to contribute to sustainable transport solutions. The paper builds on a qualitative case study methodology of a truck OEM. The results display three forms of networked business models: business models in stable, established and emerging networks. The stable business model is based on the present situation with the truck at the centre. The established business model is partly based on the present and partly on the future with the focus on uptime of the trucks. The emerging business model is future-oriented and contains technological development of connectivity, electrification and automation. Managerial implications regard that coping with the emerging business is necessary but result in great uncertainty regarding how to interact, which resources to invest in and how to coordinate activities.
... Although a number of notable studies within a servitization context on buyer-supplier relationships (e.g., Johnson & Mena, 2008; and network perspectives (e.g., Hedvall et al., 2019) exist, there is a need for further research that addresses the challenges of coordinating an internal and external service partner network for servitizing firms. Previous research has demonstrated that more complex service supply network configurations might be necessary to create value for customers (Chakkol et al., 2014;, with some arguing that the " service network represents the missing link between the manufacturer and customers" (Reim et al., 2019, p. 469). ...
... This has forced organizations to rethink their approach to innovation, defined as the "deployment of new ideas and/or technologies to create new or additional value" [9,10]. In the current landscape a sustainable model of innovation is based on the fast convergence of seemingly heterogeneous and unrelated things into solutions that can create exponential outcomes [1,11,12]. This concept is labeled convergence innovation (CI) and exploits network effects and the exponential economies of convergence [1]. ...
Covid-19 has rapidly redefined the agenda of technological research and development both for academics and practitioners. If the medical scientific publication system has promptly reacted to this new situation, other domains, particularly in new technologies, struggle to map what is happening in their contexts. The pandemic has created the need for a rapid detection of technological convergence phenomena, but at the same time it has made clear that this task is impossible on the basis of traditional patent and publication indicators. This paper presents a novel methodology to perform a rapid detection of the fast technological convergence phenomenon that is occurring under the pressure of the Covid-19 pandemic. The fast detection has been performed thanks to the use of a novel source: the online blogging platform Medium. We demonstrate that the hybrid structure of this social journalism platform allows a rapid detection of innovation phenomena, unlike other traditional sources. The technological convergence phenomenon has been modelled through a network-based approach, analysing the differences of networks computed during two time periods (pre and post COVID-19). The results led us to discuss the repurposing of technologies regarding "Remote Control", "Remote Working", "Health" and "Remote Learning".
... • theory (among others: Castells, 2007;Falencikowski, 2015;Mikołajek-Gocejna, 2011), • typology (Czakon, 2012), • business model (Czakon, 2015b;Falencikowski, 2015;Hedvall, Jagstedt, and Dubois, 2019;Niemczyk, 2016), • formation (Cabral, 2015;Dodourova and Bevis, 2014;Jussila, Mainela, and Nätti, 2016;Manning, 2017; Mikołajek-Gocejna, 2011), • structure (Manning, 2017). ...
... In the views of Rehman and Saeed (2015) and (Wong, 2013), dynamic capability is a form of facility for any organization to flourish in the present dynamic environment. Competitive advantages are secured when intensifying business sustainable options (Seung, 2014), and creating value (Hedvall et al., 2019;Hashim et al., 2018;Guo et al., 2018;Rodrigo-Alarcón et al., 2018;Oghojafor et al., 2014;Sherazi et al., 2013;Machirori & Fatoki, 2013) Ibidunni and Inelo (2004) noted that sooner, the managers and owners of enterprises will engage in strategic and innovative thinking to sustain the increasing business dynamics and to enhance success of enterprise networks. In the perspective of Eisenhardt et al. (2010), for enterprise to sustain in the ferocious competitive environment, there is a need to develop strategies that will enhance more customer demand, changing the legal frameworks and implementing more technology solutions (Shimizu & Hitt 2004). ...
Objective: The study examined the mediating factors influencing the capacities and performance of enterprise network using some food and beverages enterprises in Lagos, Nigeria. Research Design & Methods: Primary source of data was employed in the study. The data collected from five hundred and thirty nine (539) respondents was analysed with the use of factor analysis which brings out the beauty and reality of the study. Six hundred and fifty seven (657) middle and top level management staff of six food enterprises and beverage enterprises particularly the manufacturing ones through a purposive sampling technique. Findings: When the original ten variables were analyzed, four variables were extracted from the analysis with eigenvalues greater or equal to 1, which explained 36.414 percent of the entire variance. Hence, the mediating factor influencing the capacities of enterprise network performance is Strategic Decision-Making Capacity (SDMC), Technological Capacity (TC), Efficiency Enterprise Capacity (EEC), and Complexity in Technology or Technological Turbulence (TT). Contribution & Value Added: Finally, factors influencing the capacities of network performance are Strategic Decision Making Capacity (SDMC), Technological Capacity (TC), Efficiency Enterprise Capacity (EEC), and Complexity in Technology or Technological Turbulence (TT). The result of the study is essential because of its significant contribution to the body of knowledge and literature regarding strategic management.
... This has forced organizations to rethink their approach to innovation, defined as the "deployment of new ideas and/or technologies to create new or additional value" [9,10]. In the current landscape a sustainable model of innovation is based on the fast convergence of seemingly heterogeneous and unrelated things into solutions that can create exponential outcomes [1,11,12]. This concept is labeled convergence innovation (CI) and exploits network effects and the exponential economies of convergence [1]. ...
Covid-19 has rapidly redefined the agenda of technological research and development both for academics and practitioners. If the medical scientific publication system has promptly reacted to this new situation, other domains, particularly in new technologies, struggle to map what is happening in their contexts. The pandemic has created the need for a rapid detection of technological convergence phenomena, but at the same time it has made clear that this task is impossible on the basis of traditional patent and publication indicators. This paper presents a novel methodology to perform a rapid detection of the fast technological convergence phenomenon that is occurring under the pressure of the Covid-19 pandemic. The fast detection has been performed thanks to the use of a novel source: the online blogging platform Medium. We demonstrate that the hybrid structure of this social journalism platform allows a rapid detection of innovation phenomena, unlike other traditional sources. The technological convergence phenomenon has been modelled through a network-based approach, analysing the differences of networks computed during two time periods (pre and post COVID-19). The results led us to discuss the repurposing of technologies regarding “Remote Control”, “Remote Working”, “Health” and “Remote Learning”.
... As for the facilitator "the establishment of a network," it fosters value co-creation, as firms cooperate with their network of partners to develop solutions and to create innovations (Martinez-Fernandez and Miles, 2006;Kohtam€ aki et al., 2013;Hedvall et al., 2019). Within the network, firms co-create value with their partners to access capabilities and transfer knowledge, so, the establishment of a network ensures competitive advantage (Kohtamaki and Helo, 2015;Schwetschke and Durugbo, 2018). ...
Purpose – The purpose of this study is to recognize the facilitators and inhibitors of value co-creation in the industrial service environment.
Design/methodology/approach – First, a systematic literature review (SLR) based on the systematic search flow (SSF) method was conducted, using six databases. Then, the content analysis proposed by Bardin (2011) was used to analyze the selected papers from SLR.
Findings – The authors identified a total of 11 facilitators and four inhibitors of value co-creation in industrial services. The findings show that concerning facilitators, the involvement of actors and synergy among participants reported a higher presence. As for the inhibitors, incompatibility among actors and actors’ inexperience in the context of value co-creation were the ones that registered the most frequency.
Research limitations/implications – Even though the SLR covered a large proportion of the studies available, this research may not have enabled a complete coverage of all existing peer-reviewed papers in the field of value co-creation in industrial services.
Practical implications – This study assists managers in enhancing the performance of the value co-creation process. This is because, by knowing both the facilitators and inhibitors, managers can have an improved understanding of this process, thereby pondering these elements on the elaboration of their strategies and
decision-making.
Originality/value – This study is one of the first attempts to recognize both the facilitators and inhibitors of value co-creation in industrial services.
Perkembangan digitalisasi bagi pelaku ekonomi kreatif di Indonesia berkembang pesat. Hal ini dikarenakan adanya perubahan dan perkembangan di era ini, khususnya dalam konteks teknologi. Digitalisasi dapat mendatangkan keuntungan bagi pelaku ekonomi, namun di sisi lain mereka menghadapi kendala dalam mengembangkan usahanya. Selanjutnya penelitian ini bertujuan untuk mengetahui hubungan antara pemasaran digital dengan peningkatan daya saing ekonomi kreatif pada sektor fesyen di Kecamatan Bangkinang Kota. Peneliti menggunakan metode kuantitatif untuk memperoleh informasi yang dibutuhkan dalam penelitian ini. Selain itu, teknik pengambilan sampel yang digunakan adalah simple random sampling dengan jumlah sampel sebanyak 122 pelaku ekonomi kreatif. Selain itu penelitian ini menemukan bahwa pemasaran digital memiliki hubungan yang positif dan signifikan terhadap peningkatan daya saing pelaku ekonomi kreatif khususnya yang berlokasi di Kabupaten Kampar dengan nilai sig. < 0,05 (0,000 < 0,005). Berdasarkan hasil uji koefisien determinasi diperoleh nilai R Square sebesar 0,451 atau 45,1%. Artinya, pemasaran digital memengaruhi daya saing ekonomi kreatif sebesar 45,1%, sedangkan 54,9% lainnya dipengaruhi oleh faktor lain yang tidak diteliti dalam penelitian ini.
It is a common perception that circular economy (CE) principles positively influence the servitisation strategy. The firms improve their productivity and resource/energy efficiency by engineering functional efficacy in a sustainable product. However, the managerial practices that support this distinctive business model (BM) are relatively sparse despite their liaisons. Therefore, this paper is focused on addressing this gap by investigating the managerial practices that firms can implement to explore the downstream opportunities of CE and servitisation BM. This paper uses a systematic literature review (SLR) approach to frame a theoretical model. The findings were improved by cross-validation using a text mining technique, demonstrating how organisations may co-create and extract value through CE and servitisation to develop a flexible management system. This study used the business model canvas antecedents to map a set of managerial practices to understand the mythography of the servitisation approach with CE principles. The findings show that identifying key stakeholders assists a firm in selecting an appropriate strategy based on sustainable value propositions that include cost structure and revenue streams to close the resource loop. Managerial commitment is critical in achieving the maximum economic, environmental, and societal potential. A few research agendas with distinct research orientations are proposed to mitigate the significant research gaps in CE and servitisation literature. This study provides managers and practitioners with some intriguing insights as it emphasises the need to select a suitable strategy to utilise a firm's resources successfully.
The study aimed to analyse the peculiarities of the introduction of digital technologies in the field of accounting at agricultural enterprises, in particular, the analysis of national and international experience. The study analysed the process of digitalisation of accounting at agricultural enterprises in Ukraine, which is an important step towards improving management efficiency, reducing operating costs and ensuring compliance with modern regulatory requirements. The analysis of the main trends in the implementation of automated accounting and financial accounting systems demonstrated that such systems allow agricultural enterprises to automate routine processes, reduce the number of errors and reduce the time for preparing financial statements. The study also revealed several challenges towards the full digitalisation of accounting, including insufficient technical infrastructure, lack of qualified personnel, and low digital literacy. Insufficient funding and regulatory barriers are also serious challenges for businesses. Particular attention was devoted to cybersecurity issues, which are increasingly relevant due to the growth of digital data. The study compared the Ukrainian experience with the experience of the European Union, the United States, and Canada, where the digitalisation of accounting has reached a high level. The study proposed recommendations for the successful implementation of digital technologies in accounting processes at agricultural enterprises in Ukraine, addressing the existing limitations and opportunities. The study emphasised the importance of auditing the existing digital infrastructure, investing in equipment upgrades, staff training, gradual introduction of new technologies, and partnerships with leading digital solution providers. The findings emphasise the significant potential of digitalisation to increase the efficiency, transparency, and competitiveness of Ukrainian agricultural enterprises, but achieving these goals requires a balanced approach to the introduction of new technologies, government support, and appropriate educational training. The results obtained in this study can be used to improve the digitalisation of accounting at Ukrainian agricultural enterprises, increase the efficiency of financial management and adapt international standards to local conditions
This conceptual proposal is a state of the art in the field of strategic management of the company with the perspective of building an enlightening line of analysis for the efficient organization of Ecuadorian MSMEs and the region. This is a bibliographical research based on the criteria of Relational Capital, Collaborative Strategies and Risk Coverage. The conclusions reached reveal that these concepts allow business productivity to operate with high competitive criteria in the value chain and, from this perspective, they are a novel contribution to this field of business management and entrepreneurship.
This article presents a systematic review and bibliometric analysis of research linking the inter-organizational business network and innovation research. It also discusses previous research on the subject and identify gaps for future studies. A review was done using the dimensions database. This was undertaken using specific keywords search in the title, abstract, and keywords of papers. The review revealed that the research in the field is growing fast. In fact, the paper has established that the UK, the US, and Italy respectively, have dominated publications in terms of the most influential countries for research in the field of inter-organizational business networks. The content review of papers showed that the papers were mainly trying to address the phenomena (the antecedents, management of the network, and network performance outcomes). These categories are not mutually exclusive but would help us to organize the fragmented literature on the topic. This article reviews and discusses the empirical literature on inter-organizational innovation networks and shows that the field is highly fragmented. While some areas have gained considerable research attention, others have experienced a relative paucity of research, and thus topics for future research are discussed.
As solutions in business-to-business markets become more complex, firms embed external products and services to better cater to customer needs. Complex solutions sometimes lead to triadic relationships, where interactions emerge between the supplier, the business-to-business buyer, and their customers. Infrequent examination of these relationships led this research to focus on understanding the interaction and innovation processes in triadic relationships. Using a single longitudinal case study, this study discovered four key outcomes that emerged from triadic interactions—product enhancement, service refinements, e-resource integration, and complementary synergy. These outcomes corresponded with a movement from a linear relationship (supplier with buyer and buyer with the customer) to a network relationship (each member has a relationship with other members). Surprisingly, our findings indicated that conflict is an antecedent to cooperation and the development of triadic relationships. Finally, shallow triadic relationships lead to incremental innovation, but deep triadic relationships lead to radical innovation. From our findings, we derive implications for theory and practice.
Solution networks refer to a relationship of actors who are connected to each other with the aim of integrating their resources to co-create value through solutions. Value co-creation is one of the key issues in the continuation of the implementation of innovative software solutions in these networks. The purpose of this research is to present a value co-creation model in business networks based on customer solutions in software companies. This research was conducted with a qualitative data-based method. The research data was collected through semi-structured interviews with 36 experts in Iran’s software industry. The data were analyzed through three stages of open, axial and selective
coding, according to which 93 concepts were obtained in the form of 16 main categories. The findings of the research show that the alignment of employees and managers with network goals, transparency of customer processes and resources, the quality of provider resources and knowledge of the business ecosystem create value co-creation and conditions such as long-term partnership, internal configurations, documentation and
feedback, management of changes and uncertainties, and protection of intellectual property are also effective. Based on the results, value co-creation is not only an inseparable concept with solution business networks, but also requires a kind of strategic alignment at the level of some joint activities between the provider and the customer.
Purpose
Implementing servitization requires collaborative efforts from multiple actors in the business network or ecosystem. A multi-actor perspective is considered valuable for understanding the process of servitization. This study aims to review the contemporary research on organizing servitization by multi-actor collaborations.
Design/methodology/approach
The approach of systematic literature review was used. In total, 90 English-language journal articles published from 2004 to 2021 were selected based on a series of rigorous steps. Furthermore, descriptive and thematic analyses were conducted to answer the predefined review questions.
Findings
The servitization research from the multi-actor collaboration perspective is an infant field yet growing increasingly. An integrative framework was proposed to reveal the extant related studies. In this framework, three typical servitization lenses emphasizing multi-actor collaborations were uncovered. Moreover, six categories of influence factors and possible positive and negative outcomes for this process were identified. Existing knowledge gaps and underlying research directions were also discussed to lay the foundations for future research.
Research limitations/implications
This research has been limited by the usage of single database, rigorous selection criteria by the Academic Journal Guide (AJG 2018) list and exclusion of non-English papers.
Originality/value
To the best of the authors’ knowledge, this study is one of the earliest systematic literature reviews to explore the servitization issues by adopting a multi-actor perspective. The findings can consolidate the knowledge base of servitization and provide implications for the multiple fields of industrial marketing, operational management, information management and service marketing.
The utilization phase is critical for overall solution value creation, but solution providers and customers alike struggle to manage this phase effectively. We employed the resource interaction approach (RIA) in a case study of a Swedish clean-tech company with three failed solution projects. We identified three challenges associated with co-creating solution value during utilization: (1) new interfaces between the solution outputs and the customer’s other relevant resources become manifest during use; (2) the standardized parts of the solution are created in specific contexts and hence may not perform as expected if the customer’s use context is considerably different; and (3) gradual changes in the solution outputs and the customer’s other relevant resources are difficult to detect and assess. We develop three propositions based on these findings. This study contributes to the solutions literature as one of the first empirical studies to investigate challenges in solution utilization from an RIA perspective.
Purpose
The authors selected global automobile manufacturing firms whose sales ranked within 100 in the five years from 2014 to 2018 in the Factiva database to examine how the characteristics of a firm's whole network and ego-network in a transnational coopetition network influence network performance.
Design/methodology/approach
The authors analyzed the public news of the sample firms about the coopetition by structural content analysis to build the coopetition networks and access to data on the competitive actions of firms. Then, to measure the variables associated with the coopetition network, such as the structural hole, centrality and ego-network stability, the authors use UCINET 6 that is a widely used piece of software for social network analysis to establishing five undirected binary adjacency matrices.
Findings
The authors find that a firm's competitive aggressiveness mediates the relationship between a firm's whole network position and network performance that emphasizes the need for integrating competitive dynamics research and coopetition research and shows how valuable insights can be gained through such integration. And the interaction of structural hole and centrality impacts competitive aggressiveness and network performance, and the interaction is different under high and low ego-network stability. The integration of whole network and ego-network literature studies provides new insights into firm network literature.
Practical implications
In the process of cooperation, firms should consider whether they can occupy the structural hole and center as important indicators for partner selection. Too stable relationship will prevent firms from obtaining new resources. Firms should weigh the period of cooperation according to specific situation.
Originality/value
These results indicate that ego-network stability, as an important complementary characteristic of coopetition network, has a significant synergistic effect with structural holes and centrality on competitive aggressiveness and network performance. And these findings expand the current literature on the relationship between characteristics of network, competitive aggressiveness and network performance.
This study examined the impact of dynamic capacities on the performance of food and beverage enterprise in Lagos, Nigeria. The following sub-variables (strategic decision-making capacity, product innovation capacity, strategic flexibility, competitive intensity, technological turbulence, and technological capability) were employed to represent the variable of dynamic capacity. Also, the following sub-variables (sales growth, enterprise survival, enterprise efficiency and competitive advantage) were employed to represent the variable of enterprise performance. Primary data was used to achieve descriptive and inferential statistics, and the statistics is estimated by PLS-SEM method which was calibrated on Lisrel 8.70 software.
This study found that product innovation, competitive intensity and technological turbulence, technological capability and competitive intensity, and strategic flexibility are critical sub-variables in determining the robustness of dynamic capacities, as they adequately improve increasing sales growth, survival and sustenance of enterprise into the unforeseeable future, efficiency of enterprise, and competitive advantage of food and beverage manufacturing enterprises respectively, particularly in this trying period that is evidenced with technological change, competition, among others.
With increasing competition at the international level and the emergence of complex customer needs, some suppliers have changed their value proposition from product or service selling to solution selling. Since studies of the solution have each addressed different aspects of the solution, and there is no clear framework for understanding the issue because of the novelty of the debate. Therefore, the purpose of this study is to summarize and classify the main categories and concepts related to customer solution in multinational companies and provide a conceptual framework for understanding it. For this purpose, 53 cases of qualitative studies customer solution in multinational companies analyzed by content analysis and their codes extracted using Meta–Synthesis method. Then the codes that conveyed a similar concept categorized into 13 concepts. Related concepts also categorized into 5 categories. The findings of the research showed that the customer solution framework has five main components: " configuration of strategic capabilities", "configuration of solution networks", "modularity of solution delivery", "solution processes and templates" and "uncertainty and tensions of solution”. These components find meaning in an interconnected framework and provide the basis for successful International business transition from selling products and services to delivering customer solutions.
Many firms struggle to successfully translate corporate strategy into value-added solutions for customers by integrating products and services. A particular hurdle is the intrinsic motivation of the people in charge. This study contributes to the microfoundations of servitization literature by exploring what motives and strategies drive decision-makers to pursue product-service integration (PSI). Given the fragmented state of the literature, we follow an abductive approach. First, applying a behavioral strategy lens, we identify the theoretical building blocks to construct a conceptual framework. Next, we collect data of 178 small, Belgian firms to perform an exploratory quantitative analysis. Finally, we develop theory based on the results. Specifically, we find that the need for achievement and affiliation are both directly and positively associated with PSI. Also, achievement-driven people are likely to pursue PSI, originating from a product leadership position. Finally, the power motive is positively associated with operational excellence, but not with PSI.
With increasing competition at the international level and the emergence of complex customer needs, some suppliers have changed their value proposition from product or service selling to solution selling. Since studies of the solution have each addressed different aspects of the solution, and there is no clear framework for understanding the issue because of the novelty of the debate. Therefore, the purpose of this study is to summarize and classify the main categories and concepts related to customer solution in multinational companies and provide a conceptual framework for understanding it. For this purpose, 53 cases of qualitative studies customer solution in multinational companies analyzed by content analysis and their codes extracted using Meta–Synthesis method. Then the codes that conveyed a similar concept categorized into 13 concepts. Related concepts also categorized into 5 categories. The findings of the research showed that the customer solution framework has five main components: " configuration of strategic capabilities", "configuration of solution networks", "modularity of solution delivery", "solution processes and templates" and "uncertainty and tensions of solution”. These components find meaning in an interconnected framework and provide the basis for successful International business transition from selling products and services to delivering customer solutions.
با افزایش رقابت در سطح بینالمللی و ظهور نیازهای پیچیده مشتریان، برخی تامینکنندگان پیشنهادات ارزش خود را از فروش کالا یا خدمت به فروش راهکار تغییر دادهاند. از آنجا که مطالعات انجام شده روی راهکار هر یک به صورت مجزا به جنبههای مختلف آن پرداختهاند، و از طرفی به دلیل نو بودن مباحث راهکار، در اینزمینه چارچوب مشخصی برای فهم موضوع وجود ندارد. از اینرو، هدف این پژوهش احصاء و طبقهبندی مقولهها و مفاهیم اصلی مرتبط با راهکار مشتری در شرکتهای چندملیتی و ارائه یک چارچوب مفهومی برای درک آن است. بدین منظور با استفاده از روش فراترکیب، 53 مورد از مطالعات کیفی انجام گرفته روی راهکار مشتری در شرکتهای چندملیتی تحلیل محتوا شد و کدهای آنها استخراج شد. سپس کدهایی که مفهوم مشابهی را میرساندند در قالب 13 مفهوم دستهبندی شدند. مفاهیم مرتبط نیز در 5 مقوله دستهبندی شدند. یافتههای پژوهش نشان داد چارچوب راهکار مشتری دارای پنج مولفه اصلی: «پیکربندی قابلیتهای استراتژیک»، «پیکربندی شبکههای راهکار»، «مدولار بودن ارائه راهکار»، «فرایندها و قالبهای راهکار» و «عدم قطعیت و تنشهای راهکار» است. این مولفهها در یک چارچوب متصل بههم معنا پیدا میکنند و زمینه انتقال موفق کسب و کارهای بینالمللی از فروش محصولات و خدمات به سوی ارائه راهکارهای مشتری را مهیا میکنند.
Since the introductory article for what has become known as the “service-dominant (S-D) logic of marketing,” “Evolving to
a New Dominant Logic for Marketing,” was published in the Journal of Marketing (Vargo, S. L., & Lusch, R. F. (2004a)), there
has been considerable discussion and elaboration of its specifics. This article highlights and clarifies the salient issues
associated with S-D logic and updates the original foundational premises (FPs) and adds an FP. Directions for future work
are also discussed.
KeywordsService-dominant logic-New-dominant logic-Service
OVERVIEW: Traditional manufacturing companies are increasingly offering industrial services in order to secure their position in the globally competitive environment. However, little is known about the extent and effect of this transition. Based on a large-scale survey of Finnish manufacturing companies, this study offers descriptive statistics for current industrial service offerings. Merely adding on simple services to a current product offering is shown to be negatively associated with financial performance. Rather, our statistical analysis suggests a thorough and comprehensive organizational transformation is required to generate significant financial value. In addition, qualitative data from globally recognized Swedish and Finnish frontrunner manufacturing companies offer insights into how these market leaders have successfully navigated the organizational challenges of such a transformation to offer successful industrial product-service systems. Based on the data, we outline four distinctive capabilities and associated key learning activities required to facilitate a successful transition toward becoming a high-value industrial product-service provider.
The point of departure for this article is the need for product-centric firms to compete in the market by adding services to their portfolio, which requires a greater focus on service innovation if they are to remain competitive. A major challenge associated with the shift from product-centeredness to a product-and-service orientation is the management of the essential dynamic capabilities of sensing, seizing, and reconfiguring needed for service innovation. The research study reported identifies key microfoundations forming the basis of successful realignment of a firm's dynamic capabilities so as to achieve a better fit with service innovation activities. Eight qualitative case studies of product-centric firms form the basis of the study. The findings make three primary contributions to the body of knowledge. First, they extend the existing literature on dynamic capabilities by specifically discussing microfoundations related to service innovation. Second, the study extends existing work on service innovation into the manufacturing industries by identifying the key microfoundations in that context. Third, the research provides empirical evidence of dynamic capabilities in practice, especially in product-centric settings in which the service context is novel.
The move being made by manufacturers of capital goods from offering products
to solutions implies that they must make a decision as to whether the capabilities
necessary for providing solutions should be developed internally or externally. However,
research has often implied an internal capability development option, and focused mostly
on multinational companies. Through multiple case studies, this paper provides a deeper
understanding of the strategic decisions about the ‘‘make or buy’’ of capabilities. A
framework is proposed for classifying the different approaches adopted by firms, consisting
of two dimensions. The first one encompasses the service components driving the
move from products to solutions, whilst the second one describes whether the capabilities
are developed internally, externally or in a mixed way. The empirical application of the
framework suggests four distinct strategic approaches relating the service components
and the development of capabilities. They are named ‘‘selling after-sales services’’,
‘‘integrating after-sales solutions’’, ‘‘selling life-cycle solutions’’ and ‘‘orchestrating
total solutions’’. The description of these approaches enriches the understanding of the
ways in which firms move towards the provision of integrated solutions. Finally, the inclusion
in the sample of smaller firms allows to extend the discussion about the transition
from products to solutions to contexts different from those of multinational enterprises
generally studied.
Because extant literature on the service logic of marketing is dominated by a metaphorical view of value co-creation, the roles of both service providers and customers remain analytically unspecified, without a theoretically sound foundation for value creation or co-creation. This article analyzes value creation and co-creation in services by analytically defining the roles of the customer and the firm, as well as the scope, locus, and nature of value and value creation. Value creation refers to customers’ creation of value-in-use; co-creation is a function of interaction. Both the firm’s and the customer’s actions can be categorized by spheres (provider, joint, customer), and their interactions are either direct or indirect, leading to different forms of value creation and co-creation. This conceptualization of value creation spheres extends knowledge about how value-in-use emerges and how value creation can be managed; it also emphasizes the pivotal role of direct interactions for value co-creation opportunities.
Purpose
This paper analyzes two manufacturing firms entering condition based maintenance business reveals the complex nature of establishing integrated solutions. Existing literature on integrated solutions is contrasted critically against empirical findings.
Design/methodology/approach
Descriptive, comparative case study focuses on solution offerings in two different companies. The data consist of 57 thematic interviews of both manufacturer and customer representatives and company documents.
Findings
In integrated solutions, value is created incrementally through the customer‐provider co‐production process. Building integrated solutions business requires managing the interdependence of the solution components – both within the provider company and the offering, and between the provider and the client – to enable this collaborative process.
Research limitations/implications
The case studies were first conducted separately and later compared. However, despite some minor differences in case methodologies, no problems were encountered in the comparative analysis of the data sets.
Originality/value
The paper departs from the canons of earlier literature as it proposes a revised definition for integrated solution offerings; it emphasizes balanced amalgamation of multiple perspectives instead of just replacing the old ones; it questions the view of solutions development as a straight‐forward implementation process; and it switches perspective from the manufacturer to the business of the client as the main system.
This study draws on depth interviews with 49 managers in customer firms and 55 managers in supplier firms and on discussions with 21 managers in two focus groups to propose a new way of thinking about customer solutions. Extant literature and suppliers interviewed for this study view a solution as a customized and integrated combination of goods and services for meeting a customer's business needs. In contrast, customers view a solution as a set of customerâ€supplier relational processes comprising (1) customer requirements definition, (2) customization and integration of goods and/or services and (3) their deployment, and (4) postdeployment customer support, all of which are aimed at meeting customers' business needs. The relational process view can help suppliers deliver more effective solutions at profitable prices. In addition, field research suggests that the effectiveness of a solution depends not only on supplier variables but also on several customer variables. Supplier variables include contingent hierarchy, documentation emphasis, incentive externality, customer interactor stability, and process articulation. Customer variables include adaptiveness to supplier offerings and political and operational counseling that a customer provides to a supplier. Several of these variables underscore the importance of suppliers developing social capital with customers. The authors discuss implications for solution suppliers and identify areas for further research.
Management literature is almost unanimous in suggesting to manufacturers that they should integrate services into their core product offering. The literature, however, is surprisingly sparse in describing to what extent services should be integrated, how this integration should be carried out, or in detailing the challenges inherent in the transition to services. Reports on a study of 11 capital equipment manufacturers developing service offerings for their products. Focuses on identifying the dimensions considered when creating a service organization in the context of a manufacturing firm, and successful strategies to navigate the transition. Analysis of qualitative data suggests that the transition involves a deliberate developmental process to build capabilities as firms shift the nature of the relationship with the product end-users and the focus of the service offering. The report concludes identifying implications of our findings for further research and practitioners.
Central to service-dominant (S-D) logic is the proposition that the customer becomes a co-creator of value. This emphasizes
the development of customer–supplier relationships through interaction and dialog. However, research to date suggests relatively
little is known about how customers engage in the co-creation of value. In this article, the authors: explore the nature of
value co-creation in the context of S-D logic; develop a conceptual framework for understanding and managing value co-creation;
and utilize field-based research to illustrate practical application of the framework. This process-based framework provides
a structure for customer involvement that takes account of key foundational propositions of S-D logic and places the customer
explicitly at the same level of importance as the company as co-creators of value. Synthesis of diverse concepts from research
on services, customer value and relationship marketing into a new process-based framework for co-creation provide new insights
into managing the process of value co-creation.
KeywordsCo-creation-Co-production-Service-dominant logic-Value
The creation of value is the core purpose and central process of economic exchange. Traditional models of value creation focus on the firm’s output and price. We present an alternative perspective, one representing the intersection of two growing streams of thought, service science and service-dominant (S-D) logic. We take the view that (1) service, the application of competences (such as knowledge and skills) by one party for the benefit of another, is the underlying basis of exchange; (2) the proper unit of analysis for service-for-service exchange is the service system, which is a configuration of resources (including people, information, and technology) connected to other systems by value propositions; and (3) service science is the study of service systems and of the co-creation of value within complex configurations of resources. We argue that value is fundamentally derived and determined in use – the integration and application of resources in a specific context – rather than in exchange – embedded in firm output and captured by price. Service systems interact through mutual service exchange relationships, improving the adaptability and survivability of all service systems engaged in exchange, by allowing integration of resources that are mutually beneficial. This argument has implications for advancing service science by identifying research questions regarding configurations and processes of value co-creation and measurements of value-in-use, and by developing its ties with economics and other service-oriented disciplines.
This paper examines the collaborative process of value co-creation in the context of knowledge intensive business services. Through 120 qualitative interviews with suppliers and buyers of knowledge intensive services, the extensive exploratory study analyzes the activities, roles and resources of buyers and suppliers in the reciprocal value co-creation process, and their implications for the resulting value-in-use. The paper draws on the literature on value creation, solutions and professional services marketing, and service-dominant logic. It provides a framework depicting value co-creation that occurs through a dyadic problem solving process, comprising activities such as diagnosing needs, designing and producing solutions, organizing the process and resources, managing value conflicts, and implementing the solution. The framework serves as a managerial tool to determine critical resources and roles for suppliers and customers, facilitate joint activities, and optimize resource utilization. Insights from this research are broadly applicable to the contexts of knowledge intensive and solutions business.
The underpinning logic of value co-creation in service logic is analyzed. It is observed that some of the ten foundational premises of the so-called service-dominant logic do not fully support an understanding of value-co-creation and creation in a way that is meaningful for theoretical development and decision making in business and marketing practice. Without a thorough understanding of the interaction concept, the locus as well as nature and content of value co-creation cannot be identified. Value co-creation easily becomes a concept without substance. Based on the analysis in the present article, it is observed that the unique contribution of a service perspective on business (service logic) is not that customers always are co-creators of value, but rather that under certain circumstances the service provider gets opportunities to co-create value together with its customers. Finally, seven statements included in six of the foundational premises are reformulated accordingly.
Following the article by Vargo and Lusch (2004) the use of a service- dominant logic has become an international topic for discussion. In the present article, following the research tradition of the Nordic School the contribution of service marketing to marketing at large is discussed. In this article a service logic is compared to a goods logic. It is concluded that a service logic fits best the context of most goods producing businesses today. These conclusions are similar to those proposed by Vargo and Lusch (2004). However, there are differences as well, as the approach of the Nordic School is to study services directly in their marketing context and report on how changing marketing contexts influence the logic required for effective marketing. Key Words Service logic service marketing service logic in marketing marketing theory
Purpose
The paper aims to provide a better understanding of the interrelatedness of customer and service orientations in the organizational structures of capital goods manufacturing companies.
Design/methodology/approach
A qualitative, multi‐case research design was employed using 36 European capital goods manufacturing companies.
Findings
This article explored four different patterns of how companies move from being product‐focused to service‐focused, and from having an organizational structure that is geographically focused to one that is customer‐focused. The four patterns are termed as follows: emphasizing service orientation, service‐focused organizational structure, emphasizing customer orientation, and customer‐focused organizational structure.
Research limitations/implications
Although the study is based on 36 case studies, the external validity (generalizability) of the findings could not be assessed accurately.
Practical implications
The description of the four organizational approaches offers guidance for managers to restructure their companies towards service and customer orientations.
Originality/value
The article links the relatively independent discussions of service and customer orientations in the context of organizational structures. The four patterns provide a better understanding of how capital goods manufacturers integrate increased customer and service focuses in their organizational structures.
Marketing inherited a model of exchange from economics, which had a dominant logic based on the exchange of "goods," which usually are manufactured output. The dominant logic focused on tangible resources, embedded value, and transactions. Over the past several decades, new perspectives have emerged that have a revised logic focused on intangible resources, the cocreation of value, and relationships. The authors believe that the new per- spectives are converging to form a new dominant logic for marketing, one in which service provision rather than goods is fundamental to economic exchange. The authors explore this evolving logic and the corresponding shift in perspective for marketing scholars, marketing practitioners, and marketing educators.
This study draws on depth interviews with 49 managers in customer firms and 55 managers in supplier firms and on discussions with 21 managers in two focus groups to propose a new way of thinking about customer solutions. Extant literature and suppliers interviewed for this study view a solution as a customized and integrated combination of goods and services for meeting a customer's business needs. In contrast, customers view a solution as a set of customer–supplier relational processes comprising (1) customer requirements definition, (2) customization and integration of goods and/or services and (3) their deployment, and (4) postdeployment customer support, all of which are aimed at meeting customers' business needs. The relational process view can help suppliers deliver more effective solutions at profitable prices. In addition, field research suggests that the effectiveness of a solution depends not only on supplier variables but also on several customer variables. Supplier variables include contingent hierarchy, documentation emphasis, incentive externality, customer interactor stability, and process articulation. Customer variables include adaptiveness to supplier offerings and political and operational counseling that a customer provides to a supplier. Several of these variables underscore the importance of suppliers developing social capital with customers. The authors discuss implications for solution suppliers and identify areas for further research.
The mainstream servitization literature mostly describes the success of manufacturing firms in integrating services for their corporate clients. However, the literature is relatively silent on how territories capitalize on the potential interconnectedness between manufacturing firms and the knowledge-intensive business service (KIBS) sector. The analysis of the outcomes that result from the mutually dependent associations between manufacturing businesses and KIBS firms, a process that we call Territorial Servitization, is of great relevance for academics and policy makers. This research hypothesizes that there is a positive symbiotic and bidirectional link between the growth in KIBS activity and employment generation by manufacturing sector start-ups. Furthermore, we scrutinize the mediating role over this relation of relevant industry characteristics, in our case the stock of manufacturing firms and the total number of freights transported. The empirical application considers a unique dataset created from multiple sources—the Global Entrepreneurship Monitor (GEM), the Spanish Institute of Statistics and Eurostat—for the 17 Spanish regions during the period 2006–2012. The results support the view that territorial servitization contributes to employment creation in manufacturing sectors. Territories with a vigorous manufacturing base benefit from a virtuous circle in which KIBS start-ups and newly formed manufacturers are connected through the economic activity of incumbent manufacturing firms. The study offers valuable insights for scholars and policy makers on how to implement specific policies—e.g., the development of digital infrastructures—that facilitate the interaction between manufacturing and KIBS businesses, thus fuelling territorial development.
By representing the servitization of three leading corporations via a strategy map, this multiple-case study discusses how the strategic logic of servitization can be explained by linking the key practices adopted by manufacturers to support critical processes while shifting their focus to project-based customer solutions. The results draw on data collected from solution providers operating in the metal and machinery industries headquartered in Finland. By examining the strategic actions, tools, and processes behind the implementation of servitization, this study extends recent debates on the service-based business models of manufacturing companies. For servitization theory, this study develops a strategy map for a solution provider. For manufacturing firms, this study provides a framework and a tool for benchmarking, developing and implementing a strategy while mitigating the processes of long-term value creation and appropriation.
In this article the authors discuss an article published in a pervious issue that presented an approach to building better theory through the use of case studies. The authors suggest that the paper does not do enough to support the claim that the methods used surpass pervious methods for conducting case studies. They compare the author's approach with various case studies and discuss the limitations of the author's work. Their main concerns fall into three areas; the in-depth study of a single case, deep vs. surface description and the telling of good stories vs. the creation of good constructs. They assert that by not conducting the in-depth research applied in a traditional case study the author is depriving the research of the insight one receives from that depth of study.
This study develops a profiling framework that allows systematic comparison of different value constellations of industrial, service-based business models. Following the systematic review method, 154 research articles on servitization are analyzed using this profiling approach, producing an integrative meta-model of servitization. Three different approaches to represent servitization in studies are identified: 1) end-state models; 2) gradual transition models, and 3) stepwise progression models. These are systematically compared and eight conceptually different, generic value constellations ranging from low to high levels of servitization are identified: products with limited support; installed and supported products; complementary services; product-oriented solutions; systems leasing; operating services; managed service solutions; and total solutions. These form a pattern of servitization showing increases in complexity of the offering and value for the customer as well as changes in operational responsibilities in the value constellations. This approach resolves the gap of conceptual incommensurability’ in the literature by providing a reference against which the different value constellations of servitization can be compared. The meta-model connects the various perspectives, models and terminology into a base line theory of servitization as a process, and enables a systematic comparison of the different empirical studies.
Through 31 in-depth interviews with customers and providers of knowledge-intensive business service solutions, this article explores their view on customers' contribution to value (co)-creation. First, the study defines five internal factors that prompt customers to engage with providers for value (co)-creation and discusses unique factors that influence how customers define their needs before engaging a solution provider. In addition, the study suggests extending the known solution process by proposing the problem and need definition phase to reflect the customer's early activities. The results support the theory that customers define their typical needs not only to aid them in selecting the right provider but also to use their awareness of possible issues to guide the solution process. Providers benefit from this definition in that they gain a better understanding of their roles and responsibilities in the process. Second, the study identifies eight variables that typically enable value (co)-creation. The findings show that customers should focus their activities on those variables and providers should identify possible customer shortcomings so that they can compensate for them.
This study seeks evidence for a positive moderating role of relationship learning in the relation between manufacturing firms' knowledge-intensive business services (KIBS), i.e., product-related services for developing customized solutions, and firms' customer-specific sales performance. Our findings from a survey of 91 supplier–customer relationships indicate that KIBS offerings do not generate performance per se; instead, supplier–customer relationships must be characterized by relationship learning to co-create value from the supplier's KIBS offerings. Our findings extend the literature on industrial service businesses by shedding a more nuanced light on the core activities that enable value co-creation and value appropriation in the KIBS context.
The companies that benefits from the `go downstream' theory are presented. Managing downstream businesses requires looking at new variables such as profit per installed unit, share of customer's total downstream-activity spending and total customer return over the product life cycle. Manufacturer's cannot afford to ignore the opportunities that lie downstream, if they do, the next decade will decade will be even bleaker than the last.
Building on Thompson's (1967) typology of long-linked, intensive, and mediating technologies, this paper explores the idea that the value chain, the value shop, and the value network are three distinct generic value configuration models required to understand and analyze firm-level value creation logic across a broad range of industries and firms. While the long-linked technology delivers value by transforming inputs into products, the intensive technology delivers value by resolving unique customer problems, and the mediating technology delivers value by enabling direct and indirect exchanges between customers. With the identification of alternative value creation technologies, value chain analysis is both sharpened and generalized into what we propose as a value configuration analysis approach to the diagnosis of competitive advantage. With the long-linked technology and the corresponding value chain configuration model as benchmark, the paper reviews the distinctive logic and develops models of the value shop and the value network in terms of primary activity categories, drivers of cost and value, and strategic positioning options.
Many companies today are adopting strategies to package products and services into solutions. However, several well-managed companies are experiencing difficulty in transitioning from stand-alone product offerings to solutions. These difficulties stem directly from the organizational challenge. This challenge derives from the necessity to create a customer-centric unit or units and integrate it into the existing organization. The existing organization usually consists of product-centric business units. The leadership task is to create the management processes with which to manage the resulting inevitable conflict. This article defines a customer-centric unit. It then identifies the different solutions strategies that will determine different degrees of customer-centricity and different forms of organization. The article concentrates on the structure and management processes that are needed to implement reasonably complex solutions. The recommended structure is the front-back hybrid model that has been adopted by IBM Corp. and Nokia AB oyj. The five key processes that need to be added are customer strategy, product portfolio planning, solutions development, solutions ordering and pricing, and the assembly and disassembly of teams. These key processes are the primary vehicles through which the leaders manage the tensions between product- and customer-centric units. In addition, the redesign of reward systems is mentioned. To complete the organization, the issues of developing and selecting talent for account management and project management are highlighted. Overall, the development of skills to manage conflict and the management of this conflict through the five key processes are the organizational challenges that are featured. [ABSTRACT FROM AUTHOR]
Purpose
– The servitization of manufacturing is a diverse and complex field of research interest. The purpose of this paper is to provide an integrative and organising lens for viewing the various contributions to knowledge production from those research communities addressing servitization. To achieve this, the paper aims to set out to address two principal questions, namely where are the knowledge stocks and flows amongst the research communities? And what are generic research concerns being addressed by these communities?
Design/methodology/approach
– Using an evidenced-based approach, the authors have performed a systematic review of the research literature associated with the servitization of manufacturing. This investigation incorporates a descriptive and thematic analysis of 148 academic and scholarly papers from 103 different lead authors in 68 international peer-reviewed journals.
Findings
– The work proposes support for the existence of distinct researcher communities, namely services marketing, service management, operations management, product-service systems and service science management and engineering, which are contributing to knowledge production in the servitization of manufacturing. Knowledge stocks within all communities associated with research in the servitization of manufacturing have dramatically increased since the mid-1990s. The trends clearly reveal that the operations community is in receipt of the majority of citations relating to the servitization of manufacturing. In terms of knowledge flows, it is apparent that the more mature communities are drawing on more locally produced knowledge stocks, whereas the emergent communities are drawing on a knowledge base more evenly distributed across all the communities. The results are indicative of varying degrees of interdependency amongst the communities. The generic research concerns being addressed within the communities are associated with the concepts of product-service differentiation, competitive strategy, customer value, customer relationships and product-service configuration.
Originality/value
– This research has further developed and articulated the identities of distinct researcher communities actively contributing to knowledge production in the servitization of manufacturing, and to what extent they are pursuing common research agendas. This study provides an improved descriptive and thematic awareness of the resulting body of knowledge, allowing the field of servitization to progress in a more informed and multidisciplinary fashion.
Purpose ‐ This paper aims to explore practices and technologies successfully servitised manufacturers employ in the delivery of advanced services. Design/methodology/approach ‐ A case study methodology is applied across four manufacturing organisations successful in servitization. Through interviews with personnel across host manufacturers, their partners, and key customers, extensive data are collected about service delivery systems. Analyses identify convergence in their practices and technologies. Findings ‐ Six distinct technologies and practices are revealed: facilities and their location, micro-vertical integration and supplier relationships, information and communication technologies (ICTs), performance measurement and value demonstration, people deployment and their skills, and business processes and customer relationships. These are then combined in an integrative framework that illustrates how operations are configured to successfully deliver advanced services. Research limitations/implications ‐ The analyses are reductive and rationalising. Future studies could identify other technologies and practices. Case study as a method is inherently limited in the extent to which findings can be generalised. Practical implications ‐ Awareness and interest in servitization is growing, yet adoption of a servitization strategy requires particular organisational capabilities on the part of the manufacturer. This study identifies technologies and practices that underpin these capabilities. Originality/value ‐ This paper contributes to the understanding of the servitization process and, in particular, the implications to broader operations of the firm.
Using a business model perspective, we identify four continua that are of specific relevance for industrial firms transforming toward solution business models: customer embeddedness, offering integratedness, operational adaptiveness, and organizational networkedness. Using these continua, we explore the opportunities and challenges related to solution business model development in two different business logics that are of particular importance in an industrial context: 'installed-base' (IB) and 'input-to-process' (I2P). The paper draws on eight independent research projects, spanning an eleven-year period, involving a total of 52 multinational enterprises. The findings show that the nature and importance of the continua differ between the I2P and IB business logics. IB firms can almost naturally transition toward solutions, usually through increasing customer embeddedness and offering integratedness, and then by addressing issues around the other continua. For I2P firms, the changes needed are less transitional. Rather, they have to completely change their mental models and address the development needs on all continua simultaneously.
Combining resources to develop complex solutions (e.g., products or services) involves a varied set of business actors. Research tends to assume that actors are more or less autonomous in combining the resources they use. Presenting findings from a study of the construction of the first two pre-discharge homes for patients with cognitive and motor disabilities, we show that the autonomy of the single actor in combining resources is limited and that resource combinations are collectively enacted. Consequently, the features of the emergent resource combinations depend on the set of actors involved. We also argue that each actor takes part in resource combination both as provider and as user of resources; the two roles imply different perspectives that lead to different focal points which, in turn, impact how resources interface. The two roles orient the conduct of parties and, as confronted in business relationships, they shape the development of business relationships and resource combinations.
Based on in-depth interviews with customers, this study explores the customers' view of relevant solution criteria in the capital goods industry. Our research examines (1) whether the initial four-process conceptualization of customer solutions also holds for this industry, or whether it has to be extended and (2) which criteria of the customer solution matter the most for each member of the buying center. This study reveals that customers purchasing solutions in the capital goods industry expect the provider to be excellent in terms of six customer/supplier relational processes, namely (1) customer requirements definition, (2) customization and integration of goods and/or services, (3) their deployment, (4) post-deployment support, (5) signaling activities, and (6) inter-process management. Moreover, we found that the relevance of these processes differs across the most important members of the buying center (users, buyers, and deciders) due to their specific organizational function.
The developed solution business model framework assists firms wishing to design solution business models by categorizing capabilities and management practices necessary for the effective management of such a business model. The developed framework integrates findings from a wide variety of research streams with the empirical data collected in an abductive research process, involving ten firms with multi-national operations. The framework consist of a solution process with four phases (develop solutions, create demand, sell solution, and deliver solution) and three groups of cross-functionality issues (commercialization, industrialization, and solution platform). The framework identifies twelve capability categories, and sixty-four capabilities and management practices pertinent to the effective management of solution business. The research points to the importance of cross-functional alignment within firms. An effective solution business model requires the intricate coordination of resources and business processes across all functions.
The focus of this article is on discussing the foundations, conceptual development, and implications of resource interaction in inter-organizational networks. The article conceptualizes and classifies resources before discussing how resource interfaces enable to utilize, manage, and change resources. In doing so it provides a set of basic principles as to how resources interact at a network level, or how firms combine, develop, mobilize, and manage resources over time. This is in strong contrast to a focus on the acquisition, accumulation, and exchange of resources by the firm. The article further provides a comparison with two other research streams, the Resource-Based view (RBV) and the Service-Dominant logic (S-D logic), in order to better position this perspective on inter-organizational resource interaction. It concludes by discussing an agenda for further research.
Function-oriented business models or product–service systems (PSSs) are often seen as an excellent means for achieving ‘factor 4’. SusProNet, an EU network on PSSs, showed a more complicated reality. At least eight different types of PSS exist, with quite diverging economic and environmental characteristics. The economic potential of each type was evaluated in terms of (i) tangible and intangible value for the user, (ii) tangible costs and risk premium for the provider, (iii) capital/investment needs and (iv) issues such as the providers' position in the value chain and client relations. The environmental potential was evaluated by checking the relevance of certain impact reduction mechanisms (e.g. more intensive use of capital goods, inherent incentives for sustainable user and provider behaviour etc.). Most PSS types will result in marginal environmental improvements at best. The exception is the PSS type known as functional results, but here liability and risk premium issues, amongst others, need a solution. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.
Consumers today have more choices of products and services than ever before, but they seem dissatisfied. Firms invest in greater product variety but are less able to differentiate themselves. Growth and value creation have become the dominant themes for managers. In this paper, we explain this paradox. The meaning of value and the process of value creation are rapidly shifting from a product- and firm-centric view to personalized consumer experiences. Informed, networked, empowered, and active consumers are increasingly co-creating value with the firm. The interaction between the firm and the consumer is becoming the locus of value creation and value extraction. As value shifts to experiences, the market is becoming a forum for conversation and interactions between consumers, consumer communities, and firms. It is this dialogue, access, transparency, and understanding of risk-benefits that is central to the next practice in value creation.
More and more corporations throughout the world are adding value to their core corporate offerings through services. The trend is pervading almost all industries, is customer demand-driven, and perceived by corporations as sharpening their competitive edges. Modern corporations are increasingly offering fuller market packages or "bundles" of customer-focussed combinations of goods, services, support, self-service, and knowledge. But services are beginning to dominate. This movement is termed the "servitization of business" by authors Sandra Vandermerwe and Juan Rada, and is clearly a powerful new feature of total market strategy being adopted by the best companies. It is leading to new relationships between them and their customers. Giving many real-life examples, the authors assess the main motives driving corporations to servitization, and point out that its cumulative effects are changing the competitive dynamics in which managers will have to operate. The special challenge for top managers is how to blend services into the overall strategies of the company.
The purpose of this article is to explore the contributions that could be made to the conceptual frame of reference for business strategy management by one of the research programmes which focuses on the organization-environment interface, and to which a network approach has been applied. We start by examining some of the assumptions underlying the current “strategy management doctrine”. The network model of the organization-environment interface is then reviewed and three central issues of the strategy management doctrine are discussed from the viewpoint of the network model: (1) organizational boundaries, (2) determinants of organizational effectiveness, and (3) the process of managing business strategy.The conclusion reached is that in all three areas changes are required in the assumptions of the business strategy model. Our arguments stem from a basic proposition about the situations described by the network model: continuous interaction with other parties constituting the context with which the organization interacts endows the organization with meaning and a role. When this proposition applies, any attempt to manage the behaviour of the organization will require a shift in focus away from the way the organization allocates and structures its internal resources and towards the way it relates its own activities and resources to those of the other parties constituting its context. Such a shift in focus entails a somewhat different view of the meaning of organizational effectiveness: what does it depend on and how can it be managed?
Firms that have traditionally focused on selling products, spare parts and services face difficulties with increasing competition and declining margins. They are therefore turning to new strategies where products and services are integrated into so-called integrated solutions. Research on the challenges this presents is sparse, but there is evidence that internal factors as well as external relationships play an important role. In this paper we investigate the relationships within the business network in order to uncover some of the complex issues related to integrated solutions, including how and to what extent these relationships facilitate or impede the development of integrated solutions. Two case studies of one more and one less successful initiative within the same firm are used to illustrate challenges and possible success factors for the development of integrated solutions in the capital goods industry.The paper identifies the following six factors as important when developing integrated solutions: the strength of the relationships between the different actors involved, the firm's position in the network, the firm's network horizon, the solution's impact on existing internal activities, the solution's impact on customers' core processes, and external determinants. It shows that inter- and intra-firm relationships can both enable and obstruct the development of integrated solutions. For the firms involved in the development of integrated solutions, it becomes crucial to manage this duality.
This paper provides an overview of the implications for strategizing offered by an industrial network perspective and a comparison of this view with strategic management thinking. We argue that it is crucial for a company to relate its activities to those of other firms in order to enhance its performance, and it is through the continuous combining and recombining of existing resources that new resource dimensions are identified and further developed within business relationships. From the standpoint of a single company, strategizing from an industrial network perspective implies that the heterogeneity of resources and interdependencies between activities across company boundaries, as well as the organized collaboration among the companies involved, must be considered simultaneously.
This paper revisits the product–service distinction from an institutional perspective. Much of the literature in marketing and management has focused on the intrinsic characteristics of services with a view to derive implications for the management of service-based firms. Our key argument is that the quest for foundational differences between products and services is misguided. What counts as a product or a service is dependent on the nature of producer–user interactions and the institutional structure of production rather than on any essentialist feature of products or services. Furthermore, we develop the argument that services play an increasingly important role in manufacturing firms and we explore the reasons that underpin this trend.
The terms “relationships” and “networks” are widely used in academic discussion of business practice and have become increasingly common in the conversions between managers themselves. This paper starts with a description of some aspects of business networks and relationships and highlights the questions that they pose for practitioners. The paper suggests that an understanding of these questions require an appreciation of a number of paradoxes that are intrinsic to the nature of business networks. The paper explores each of these paradoxes and draws out their managerial implications. It uses these paradoxes to provide an answer to the question; “How should companies interact in business networks?”
This paper examines the current state of application of qualitative methods, namely case studies in purchasing and supply management. We argue that the case study method has much to contribute to the development of the discipline namely in terms of theory development, providing strong exemplars as well as testing theories culled from other disciplines. In examining the use of the case method in purchasing and supply management, we suggest that there is a noticeable trend away from single case designs with sparse methodological reflections to multiple case, comparative designs accompanied by the use of conventional method justifications. These developments are broadly welcomed but we identify two blind spots: (1) the relative neglect of the links between theory and method and (2) the use of inappropriate statistical criteria to justify multiple case research designs. We discuss the nature of these problems using a number of examples and formulate rules for conducting good case research.
For both manufacturing companies and service firms, the basis of competition is shifting fast. Manufacturers are finding they must compete by selling services; service firms now have to provide products as well as services. The emerging battleground is known as "integrated solutions," and it is where leading companies such as IBM, General Electric, Rolls-Royce and EDS already compete aggressively. Rolls-Royce provides airlines with "power by the hour:' selling engines along with the services to maintain and upgrade them over many years. Services provider EDS now manages and integrates different suppliers' technologies and products as part of its business outsourcing solutions. However, the integrated solutions approach is not simply a matter of blending products and services. Customers are buying guaranteed solutions for trouble-free operations. So the key is to develop and deploy the right capabilities - and to structure the organization so these capabilities match customers' needs. This article offers a blueprint for implementing integrated solutions, drawing on extensive research with such companies as Alstom Transport, Cable & Wireless, Thales, Ericsson and Atkins. The article highlights the importance of four prerequisite capabilities and shows the organization structures necessary for success - structures that are no longer bounded by product, service or geographic lines. The article then lays out three levels of organizational capability to chart the journey that integrated-solutions providers must take.