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Understanding product-service system innovation capabilities development for manufacturing companies
Product and Production Development, GKN Aerospace Engine System, Trollhättan.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.ORCID iD: 0000-0003-3255-414X
Product and Production Development, GKN Aerospace Engine System, Trollhättan.ORCID iD: 0000-0003-0373-3720
2015 (English)In: Journal of Manufacturing Technology Management, ISSN 1741-038X, E-ISSN 1758-7786, Vol. 26, no 5, p. 763-787Article in journal (Refereed) Published
Abstract [en]

PurposeManufacturing companies are increasingly making efforts to combine products and services into integrated offerings. However, the companies’ success in such transformation is linked with the presence of structured routines and processes, which we conceptualize as Product-Service Systems (PSS) innovation capabilities. Therefore, in this study we address the important question of how manufacturing companies can systematically build PSS innovation capabilities and does its presence or absence significantly influence PSS innovation.Design/methodology/approachThis study is based on longitudinal data from an aerospace company, which acts both as an OEM providing through-life services for aircraft engines, as well as a developer of innovative subsystem technologies. Data has been collected over 3 years (2009-2012) and constitutes 40 in-depth explorative and semi-structured interviews with diverse respondents. For analysis of the data, we have used constant comparison technique leading to identification of three high-order categories. In addition, we gain from observations and secondary data which enable us to achieve data triangulation and data validity.FindingsThe results objectively depict an overview of how the case company developed PSS innovation capabilities, though progression of routines over three early PSS development stages. More specifically, we find evidence for development of formalized routines related to customer interaction and innovative organizational climate during need phase, cross-functionality and network partnering during solution seeking phase, and competence and business case development during solution development phase. As these routines become more structured within the case company, they forge a path for PSS innovation capabilities development.Originality/valueThis study provides two distinctive contributions to emerging PSS literature. First, we propose and explain how PSS innovation capabilities are developed. Although prior studies acknowledge the importance of possessing specialized PSS innovation capabilities, limited studies have reported empirically how they are developed. Second, through adopting a longitudinal perspective, we reveal key routines and actions that drive PSS innovation during different development stages. To our knowledge, no prior study has combined insights from PSS literature and resource based view to objectively explain capabilities development process.

Place, publisher, year, edition, pages
2015. Vol. 26, no 5, p. 763-787
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
URN: urn:nbn:se:ltu:diva-3433DOI: 10.1108/JMTM-05-2013-0055ISI: 000374159900008Scopus ID: 2-s2.0-84930243932Local ID: 14242745-4c83-45cc-abc3-98a69da43990OAI: oai:DiVA.org:ltu-3433DiVA, id: diva2:976291
Projects
Fastelaboratoriet - VINNEXC
Note
Validerad; 2015; Nivå 1; 20140707 (vinpar)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved

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Wallin, JohannaParida, VinitIsaksson, Ola

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