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Adaption of  Product-Service System (PSS) Business Model Innovations in Global Distribution Networks
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.ORCID iD: 0000-0002-8939-5509
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.ORCID iD: 0000-0001-5464-2007
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.ORCID iD: 0000-0003-3255-414X
2017 (English)Conference paper, Published paper (Refereed)
Abstract [en]

Offering product-service systems (PSS) is argued to result in significant benefits to economic, environmental and social sustainability but also entails a significant challenges related to relational dynamics between the manufacturer and the service providers belonging to the distributer network. As most large manufacturing companies operate globally, their delivery network partners also tend to be globally distributed. This adds to heterogeneity within the global distribution network, where products and services sales largely relay upon readiness and willingness of their distributers to sell PSS innovations successfully. Thus, firms must actively manage the resistance in the distributer network to adopt and implement PSS business model innovations. Therefore, the purpose of this paper is to investigate how manufacturing companies can facilitate adoption of PSS business model innovations among their global distributer network. In a single case study we interviewed 23 respondents from the headquarter, regional managers and distributer network which resulted in unique insides about the challenges, needs and expectations of the different functions and how they differ from each other. The data clearly reveals that the distributer network varies significantly in terms of their readiness and ability to offer advanced services. The distributers can be classified based on the PSS business models that they are currently offer or based on certain characteristics that influence their possibility to offer advanced services (e.g. customer characteristics, market characteristics and distributer capabilities). Based on this classification and the individual challenges of the distributers, support mechanisms for managing PSS adoption in a global distributer network were identified. The mechanisms differ based on the maturity of the distributer and based on whether they support the value creation, value delivery or value capture (business model elements). The findings show that the distributers need to be treated differently based on their maturity level in order to adopt PSS successfully and that the manufacturer need to be actively involved in the development of all distributors.

Place, publisher, year, edition, pages
2017.
National Category
Economics and Business Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
URN: urn:nbn:se:ltu:diva-65760OAI: oai:DiVA.org:ltu-65760DiVA, id: diva2:1143606
Conference
24th International Product Development Management Conference IPDMC, 2017, Reykjavik, Iceland, June 11-13, 2017
Available from: 2017-09-21 Created: 2017-09-21 Last updated: 2017-11-24Bibliographically approved

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fulltext(527 kB)136 downloads
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Type fulltextMimetype application/pdf

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Reim, WiebkeRönnberg Sjödin, DavidParida, Vinit

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CiteExportLink to record
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