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Value Leakage in Product-Service System Provision: A Business Model Alignment Perspective
Luleå University of Technology, Department of Social Sciences, Technology and Arts, Business Administration and Industrial Engineering.ORCID iD: 0000-0002-8939-5509
Jönköping International Business School, 553 18 Jönköping, Sweden.ORCID iD: 0000-0003-0401-033X
Luleå University of Technology, Department of Social Sciences, Technology and Arts, Business Administration and Industrial Engineering. University of Vaasa, 65200 Vaasa, Finland.ORCID iD: 0000-0003-3255-414X
Luleå University of Technology, Department of Social Sciences, Technology and Arts, Business Administration and Industrial Engineering.ORCID iD: 0000-0002-8103-2519
2024 (English)In: IEEE transactions on engineering management, ISSN 0018-9391, E-ISSN 1558-0040, Vol. 71, p. 940-951Article in journal (Refereed) Published
Abstract [en]

To stay competitive, manufacturing companies offer product–service systems (PSS) to avoid commoditization of their products. The potential to create value through PSS offerings lies in a company's ability to successfully implement the PSS business model. However, many companies are unable to realize the benefits because PSS represents significant changes to all the business model elements, which comprise value creation, value delivery, and value capture. This leads to misalignment among the business model elements, which is a topic of interest within PSS and business model literatures. This article aims to provide empirical insights into the business-model-element alignment problems and conceptualize their consequences, which manufacturing companies face during PSS implementation. This article utilizes an abductive multicase study of three Swedish manufacturing companies with long-term experience of PSS provision to provide novel insights by identifying six alignment problems that companies face as a consequence of the interaction among the three business model elements. Furthermore, we contribute to both the PSS and business model literature by conceptualizing the consequences of business model element alignment problems, explaining the three value leakages that occur as a result of inappropriate resource and capability utilization, unattractive offer configurations, and inefficient service network processes in PSS provision.

Place, publisher, year, edition, pages
Institute of Electrical and Electronics Engineers (IEEE) , 2024. Vol. 71, p. 940-951
Keywords [en]
Advanced services, alignment, business model, product-service systems (PSS), servitization, value destruction, value leakage
National Category
Business Administration
Research subject
Entrepreneurship and Innovation
Identifiers
URN: urn:nbn:se:ltu:diva-89527DOI: 10.1109/TEM.2022.3144741ISI: 000751494400001Scopus ID: 2-s2.0-85124176094OAI: oai:DiVA.org:ltu-89527DiVA, id: diva2:1644403
Note

Validerad;2023;Nivå 2;2023-12-04 (hanlid);

Full text license: CC BY

Available from: 2022-03-14 Created: 2022-03-14 Last updated: 2023-12-04Bibliographically approved

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Reim, WiebkeParida, VinitFrishammar, Johan

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