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Kohtamäki, M., Parida, V., Patel, P. C. & Gebauer, H. (2020). The relationship between digitalization and servitization: The role of servitization in capturing the financial potential of digitalization. Technological forecasting & social change, 151, Article ID 119804.
Open this publication in new window or tab >>The relationship between digitalization and servitization: The role of servitization in capturing the financial potential of digitalization
2020 (English)In: Technological forecasting & social change, ISSN 0040-1625, E-ISSN 1873-5509, Vol. 151, article id 119804Article in journal (Refereed) Published
Abstract [en]

The present study investigates the effect of the interaction between digitalization and servitization on the financial performance of manufacturing companies. We challenge the simple linear assumption between digitalization and financial performance with a sample of 131 manufacturing firms and hypothesize a nonlinear U-shaped interaction effect between digitalization and servitization on financial performance. From low to moderate levels of digitalization, the interaction effect between digitalization and high servitization on company financial performance is negative and significant. From moderate to high levels of digitalization, the interplay between digitalization and high servitization becomes positive and significant, improving companies’ financial performance. The results demonstrate the need for an effective interplay between digitalization and servitization, the digital servitization. Without this interplay, a manufacturing company may face the paradox of digitalization. For managers of manufacturing companies, the study provides insights into the complex relationship between digitalization and financial performance, emphasizing the value of servitization in driving financial performance from digitalization. Thus, the study demonstrates how manufacturing companies can become data-driven by advancing servitization.

Place, publisher, year, edition, pages
Elsevier, 2020
Keywords
Digital servitization business model, Product-service systems (PSS), Smart manufacturing (Industry 4.0), Digitalization capabilities, Internet of Things (IoT), Customer relationship management (CRM)
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-77119 (URN)10.1016/j.techfore.2019.119804 (DOI)2-s2.0-85075692001 (Scopus ID)
Note

Validerad;2019;Nivå 2;2019-12-10 (johcin)

Available from: 2019-12-10 Created: 2019-12-10 Last updated: 2019-12-10Bibliographically approved
Kamalaldin, A., Sundén, L., Sjödin, D. & Parida, V. (2019). A Relational View on Digital Servitization: Empirical Insights from Provider-Customer Relationships. In: Bigdeli, A.,Kowalkowski, C., Kindström, D., & Baines, T. (Ed.), Proceedings of the Spring Servitization Conference: Delivering Services Growth in the Digital Era. Paper presented at Spring Servitization Conference 2019, 13 - 15 May, 2019, Linköping, Sweden. Birmingham, UK
Open this publication in new window or tab >>A Relational View on Digital Servitization: Empirical Insights from Provider-Customer Relationships
2019 (English)In: Proceedings of the Spring Servitization Conference: Delivering Services Growth in the Digital Era / [ed] Bigdeli, A.,Kowalkowski, C., Kindström, D., & Baines, T., Birmingham, UK, 2019Conference paper, Poster (with or without abstract) (Refereed)
Abstract [en]

Providers are increasingly leveraging digitalization and offering their industrial customers more advanced services which are enabled by digital technologies such as the internet of things, remote monitoring, big data analytics, and artificial intelligence. This trend is referred to as digital servitization, and it is enabling significant changes in how value is created and captured in industrial relationships. In order to fully benefit from digital servitization, providers and customers need to transform their relationships. However, there is limited knowledge on how a provider and a customer govern their dyad relationship in the context of digital servitization. To address this gap, this paper applies the relational view theory as a lens for the purpose of studying how dyad relationships in digital servitization can be successfully governed by parties involved. To that end, research was conducted based on multiple case study of four dyad relationships between Swedish providers and customers that are actively involved in digital servitization. In total, 40 respondents from seven companies were interviewed, and data was analyzed based on thematic analysis approach to identify relevant themes and patterns. Although data collection followed an inductive approach, data aligned with the four determinants of interogranizational competitive advantage suggested by the relational view: complementary resources and capabilities, relation-specific assets, knowledge-sharing routines, and effective governance. The results of this study demonstrate that these determinants have great influence for governing relationships between the provider and customer in digital servitization. This paper provides theoretical contribution to servitization literature by highlighting the importance of relationship governance, and how this is gradually transformed as the relationship develops. This transformation is illustrated in a stepwise framework that can also guide managers in prioritizing activities and investments, and developing governance mechanisms to advance their business relationships in digital servitization context.

Place, publisher, year, edition, pages
Birmingham, UK: , 2019
Keywords
Digital servitization, Digitalization, Governance, Advanced services, Digital business models
National Category
Economics and Business Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-74258 (URN)978 1 85449 463 4 (ISBN)
Conference
Spring Servitization Conference 2019, 13 - 15 May, 2019, Linköping, Sweden
Projects
DigIn
Funder
Vinnova, 48752
Available from: 2019-06-07 Created: 2019-06-07 Last updated: 2019-07-01Bibliographically approved
Kamalaldin, A., Linde, L., Sjödin, D. & Parida, V. (2019). A Relational View on Industry 4.0: Governing Relationships in Digital Servitization. In: : . Paper presented at 8th International Conference on Business Servitization (ICBS 2019), San Sebastian, Basque Country, Spain.
Open this publication in new window or tab >>A Relational View on Industry 4.0: Governing Relationships in Digital Servitization
2019 (English)Conference paper, Oral presentation with published abstract (Refereed)
Abstract [en]

In the light of industry 4.0, providers are increasingly offering their industrial customers more advanced services enabled by digital technologies such as the internet of things, remote monitoring, and artificial intelligence. This trend is referred to as digital servitization, and it is enabling significant changes in how value is created and captured in industrial relationships. In order to fully benefit from digital servitization, providers and customers need to transform their relationships. However, there is limited knowledge on how a provider and a customer govern their relationship in the context of digital servitization. To address this gap, this paper applies the relational view theory as a lens for studying how dyad relationships in digital servitization can be successfully governed and transformed. To that end, research was conducted based on multiple case study of four dyadic relationships between providers and customers. In total, 40 respondents from both sides were interviewed, and data was analyzed based on thematic analysis approach to identify relevant themes and patterns. The results identify four components – complementary digitalization capabilities, relation-specific digital assets, digitally enabled knowledge-sharing routines, and partnership governance – that enable providers and customers to profit from digital servitization. The main contribution is the development of a relational governance framework for digital servitization. In doing so, we provide contribute to the servitization literature, as we advance understanding of the central role of relationship governance in digital servitization, and provide insights into the transformation of provider-customer relationships.

Keywords
Digital Servitization, Industry 4.0, Governance, Relational View
National Category
Economics and Business
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-76415 (URN)
Conference
8th International Conference on Business Servitization (ICBS 2019), San Sebastian, Basque Country, Spain
Funder
Vinnova
Available from: 2019-10-16 Created: 2019-10-16 Last updated: 2019-10-22
Cenamor, J., Parida, V., Oghazi, P., Pesämaa, O. & Wincent, J. (2019). Addressing dual embeddedness: The roles of absorptive capacity and appropriabilitymechanisms in subsidiary performance. Industrial Marketing Management, 78, 239-249
Open this publication in new window or tab >>Addressing dual embeddedness: The roles of absorptive capacity and appropriabilitymechanisms in subsidiary performance
Show others...
2019 (English)In: Industrial Marketing Management, ISSN 0019-8501, E-ISSN 1873-2062, Vol. 78, p. 239-249Article in journal (Refereed) Published
Abstract [en]

This study examines how subsidiaries can manage dual embeddedness with both local partners and a multinational enterprise. Specifically, we examine the role of absorptive capacity and appropriability mechanisms on subsidiary performance. We analyse how absorptive capacity and appropriability enable subsidiaries to successfully address knowledge challenges related to internal and external networks. We conducted an empirical analysis on a sample of 165 subsidiaries. Our results suggest that absorptive capacity has a direct, positive effect on subsidiary performance, which is greater in emerging countries. The study also found an indirect effect of absorptive capacity on subsidiary performance, which is mediated through appropriability mechanisms. These findings extend the literature on international networks, dual embeddedness and absorptive capacity.

Place, publisher, year, edition, pages
Elsevier, 2019
Keywords
Dual embeddedness, Absorptive capacity, Appropriability mechanisms, Emerging countries
National Category
Other Engineering and Technologies not elsewhere specified Business Administration
Research subject
Entrepreneurship and Innovation; Accounting and Control
Identifiers
urn:nbn:se:ltu:diva-64206 (URN)10.1016/j.indmarman.2017.06.002 (DOI)000466451500020 ()2-s2.0-85021130911 (Scopus ID)
Note

Validerad;2019;Nivå 2;2019-04-11 (marisr)

Available from: 2017-06-19 Created: 2017-06-19 Last updated: 2019-06-18Bibliographically approved
Reim, W., Parida, V. & Sjödin, D. (2019). Circular Business Models for the Bio-Economy: A Review and New Directions for Future Research. Sustainability, 11(9), Article ID 2558.
Open this publication in new window or tab >>Circular Business Models for the Bio-Economy: A Review and New Directions for Future Research
2019 (English)In: Sustainability, ISSN 2071-1050, E-ISSN 2071-1050, Vol. 11, no 9, article id 2558Article in journal (Refereed) Published
Abstract [en]

Circular and bio-economy represents a political and industrial initiative to ensure that our society can rely on renewable biological sources while achieving economic growth. However, there is a need to critical review how realistic and feasible such initiatives are towards fulfilling the promised benefits of this economy. The literature on bio-economy often discusses the importance of innovative business models and their role in a successful shift to a bio-economy. Still, much of the discussion that is related to circular business models is fragmented and immature. Therefore, the purpose of this study is to conduct a systematic literature review of circular business model activities and the barriers to a bio-economy. Further, this review provides future research directions for a shift to a bio-economy. This study is based on a systematic review of 42 scientific journal articles and book chapters on a forest-based bio-economy. The business model canvas is used to provide a structured aggregation of the existing circular business models activities being used by the forestry sector. In addition, we develop a framework that describes the barriers to bio-economy-based circular business models and suggest new directions for future research. The study highlights the need for alignment among the elements of a business model as a key condition for its successful implementation in a bio-economy

Place, publisher, year, edition, pages
MDPI, 2019
Keywords
bio-economy, circular economy, business models, circular business models, forest, literature review
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-75076 (URN)10.3390/su11092558 (DOI)000469518700106 ()2-s2.0-85066949345 (Scopus ID)
Note

Validerad;2019;Nivå 2;2019-08-15 (johcin)

Available from: 2019-06-27 Created: 2019-06-27 Last updated: 2019-08-15Bibliographically approved
Kohtamäki, M., Parida, V., Oghazi, P., Gebauer, H. & Baines, T. (2019). Digital servitization business models in ecosystems: A theory of the firm. Journal of Business Research, 104, 380-392
Open this publication in new window or tab >>Digital servitization business models in ecosystems: A theory of the firm
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2019 (English)In: Journal of Business Research, ISSN 0148-2963, E-ISSN 1873-7978, Vol. 104, p. 380-392Article in journal (Refereed) Published
Abstract [en]

This study extends the discussion of digital servitization business models by adopting the perspective of the theory of the firm. We use four theories of the firm (industrial organization, the resource-based view, organizational identity, and the transaction cost approach) to understand digital servitization business models of firms in the context of ecosystems. Digitalization transforms the business models of solution providers and shapes their firm boundary decisions as they develop digital solutions across organizational boundaries within ecosystems such as harbors, mines, and airports. Thus, digitalization not only affects individual firms' business models but also requires the alignment of the business models of other firms within the ecosystem. Hence, business models in digital servitization should be viewed from an ecosystem perspective. Based on a rigorous literature review, we provide suggestions for future research on digital servitization business models within ecosystems.

Place, publisher, year, edition, pages
Elsevier, 2019
Keywords
Digitalization, Industry 4.0, Ecosystems, Digital servitization, Product-service systems (PSS), Firm boundaries, Business model innovation, Platforms and sustainability
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-75256 (URN)10.1016/j.jbusres.2019.06.027 (DOI)000484647500030 ()
Note

Validerad;2019;Nivå 2;2019-09-27 (johcin)

Available from: 2019-07-08 Created: 2019-07-08 Last updated: 2019-09-27Bibliographically approved
Parida, V. & Sjödin, D. (2019). Digitalisering som möjliggörare av avancerade tjänsteaffärsmodeller i småföretag i Norrland. In: Karl Wennberg (Ed.), Entreprenörskapför en levande landsbygd: 15 texter om landsbygdsutvecklingoch entreprenörskap i Norrland. 010 Publishers
Open this publication in new window or tab >>Digitalisering som möjliggörare av avancerade tjänsteaffärsmodeller i småföretag i Norrland
2019 (Swedish)In: Entreprenörskapför en levande landsbygd: 15 texter om landsbygdsutvecklingoch entreprenörskap i Norrland / [ed] Karl Wennberg, 010 Publishers, 2019Chapter in book (Other academic)
Abstract [sv]

• Forskning visar att många av Norrlands småföretag är högspecialiserade och kan säkerställa framtida konkurrenskraft genom att utnyttja digitalisering och omvandling av affärsmodeller.

• Företag i alla branscher, men särskilt små och medelstora företag i perifera regioner är dåligt förberedda att dra nytta av digitaliseringens potential.

• Beslutsfattare, branschorganisationer och akademi behöver stödja små och medelstora företag att skapa, leverera och fånga värde genom digitalisering och avancerade tjänsteaffärsmodeller.

• Flertalet småföretag i Norrland kan komma att möta en ”digital paradox” på grund av omogenhet i att bygga digitaliseringsförmågor, samarbeta i industriella ekosystem och möta förändrade kundbehov.

Place, publisher, year, edition, pages
010 Publishers, 2019
National Category
Economics and Business
Identifiers
urn:nbn:se:ltu:diva-76187 (URN)
Available from: 2019-10-01 Created: 2019-10-01 Last updated: 2019-10-01
Sundén, L., Sjödin, D. & Parida, V. (2019). Ecosystem Business Models for Smart City Platforms. In: Bigdeli, A., Kowalkowski, C., Kindström, D., Baines, T. (Ed.), Ecosystem Business Models for Smart City Platforms: . Paper presented at 8th Spring Servitization Conference 13-15 May 2019.
Open this publication in new window or tab >>Ecosystem Business Models for Smart City Platforms
2019 (English)In: Ecosystem Business Models for Smart City Platforms / [ed] Bigdeli, A., Kowalkowski, C., Kindström, D., Baines, T., 2019Conference paper, Poster (with or without abstract) (Other academic)
Abstract [en]

Initiative towards “smart cities”, where digital technologies enable infrastructure, companies and inhabitants to interact and co-create value are increasing as a consequence of urbanization and digitalization. Indeed emphasis on smart cities has attracted considerable attention in research during the last decade and traditional B2B companies are increasingly providing smart city offerings. In most cases this includes investing in a digital platform where companies can share data with ecosystem actors, such as municipalities, infrastructure owners and utility companies, and build new value-adding services for diverse categories of customers. However, many companies are uncertain about their new role and ability to offer new service business models that would create, deliver and capture value from the digital platform. Research so far provide limited insights in on how actors develop new business models and their relationship with ecosystem partners in the smart city context. Thus, this study builds on platform theory with the purpose to enhance understanding how firms aligns ecosystem actor roles for smart city business models through digital platform. 

 

The research adopted an exploratory multiple case study design to capture insights from two industrial ecosystems in the housing and utility industries. To enhance understanding about how actors collaborate to develop smart city platforms, 35 semi-structured interviews were performed with different ecosystem actors, and were analysed using MAXQDA software. The preliminary findings reveal answers to questions like: what challenges are connected to smart city business models? And what value do different actors generate through digital platforms and how do they capture and distribute value? Further, we develop a framework connecting actor roles, to the design of the digital platform and associated business models contributing to the smart city. Thus, this study provides valuable insights to both academia and practitioners related to business models enabled by digital platforms in the smart city context. 

National Category
Economics and Business
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-74680 (URN)
Conference
8th Spring Servitization Conference 13-15 May 2019
Available from: 2019-06-18 Created: 2019-06-18 Last updated: 2019-06-18
Reim, W., Parida, V. & Sjödin, D. (2019). GLOBAL IMPLEMENTATION OF CIRCULAR BUSIENSS MODELS – DECISION SUPPORT. In: Spring Servitization Conference: . Paper presented at Spring Servitization Conference.
Open this publication in new window or tab >>GLOBAL IMPLEMENTATION OF CIRCULAR BUSIENSS MODELS – DECISION SUPPORT
2019 (English)In: Spring Servitization Conference, 2019Conference paper, Published paper (Refereed)
Abstract [en]

Purpose: Circular business models have a huge potential to lead to economic, social and environmental benefits. But in order to archive this it is crucial to reach global implementation. Therefore, the purpose of this paper is to investigate how firms can assess the potential and criteria for implementing circular business models in different global markets.

Design/Methodology/Approach: To reach the stated purpose, we have adopted a quantitative research approach and undertaken 25 explorative interviews in three large Swedish manufacturing companies and their global service network.

Findings: In this paper, a decision support tool to choose the appropriate circular business model for global implementation has been developed that facilitates the first steps towards circular business models implementation. It identifies eleven criteria that should be analysed to decide the appropriate circular business model.

Originality/Value: Circular business models have not yet reached wide implementation. One reason is that they are often presented as one fits all solutions but this is not appropriate for global implementation. Therefore, the decision tree that is developed in this paper helps companies to choose the circular business model that is most appropriate for a specific product in a specific market.

Keywords
Circular business models, Servitization, Product-Service Systems (PSS), Global markets, Service network, Decision making
National Category
Business Administration
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-74299 (URN)
Conference
Spring Servitization Conference
Available from: 2019-06-10 Created: 2019-06-10 Last updated: 2019-09-06
Cenamor, J., Parida, V. & Wincent, J. (2019). How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity. Journal of Business Research, 100, 196-206
Open this publication in new window or tab >>How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity
2019 (English)In: Journal of Business Research, ISSN 0148-2963, E-ISSN 1873-7978, Vol. 100, p. 196-206Article in journal (Refereed) Published
Abstract [en]

Digitalization offers unprecedented opportunities for entrepreneurial small and medium-sized enterprises (SMEs). However, many entrepreneurial SMEs lack resources and capabilities or suffer from inertia, which hampers these opportunities. This study investigates how entrepreneurial SMEs can enhance performance through digital platforms. Specifically, the study examines the effect of digital platform capability and network capability on entrepreneurial SMEs’ financial performance. The study also examines how exploitation and exploration orientations moderate this relationship. Based on analysis of 230 entrepreneurial SMEs, the results indicate that digital platform capability has a positive indirect effect on entrepreneurial SMEs’ performance via network capability. The study also shows that exploitation and exploration orientations negatively and positively moderate this effect, respectively. The results suggest that entrepreneurial SMEs can enhance their performance through digital platform capability by aligning this capability with their orientation. These findings thereby enrich the literature on entrepreneurial SMEs and capabilities. 

Place, publisher, year, edition, pages
Elsevier, 2019
Keywords
Digitalization, Entrepreneurial small and medium-sized enterprises, Entrepreneurship, Innovation management
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-73596 (URN)10.1016/j.jbusres.2019.03.035 (DOI)000470942500018 ()2-s2.0-85063688194 (Scopus ID)
Note

Validerad;2019;Nivå 2;2019-04-11 (johcin)

Available from: 2019-04-11 Created: 2019-04-11 Last updated: 2019-07-01Bibliographically approved
Organisations
Identifiers
ORCID iD: ORCID iD iconorcid.org/0000-0003-3255-414X

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