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Organizational capabilities for pay-per-use services in product-oriented companies
Linköping University, Department of Management and Engineering, Business Administration. Linköping University, Faculty of Arts and Sciences. Eawag Environm Social Science Business Innovat Sustai, Switzerland; Karlstad University, Sweden.
Eawag Environm Social Science Business Innovat Sustai, Switzerland.
Eawag Environm Social Science Business Innovat Sustai, Switzerland.
Karlstad University, Sweden.
2017 (English)In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 192, p. 157-168Article in journal (Refereed) Published
Abstract [en]

Pay-per-use services are an interesting phenomenon, both empirically and theoretically. Despite the alleged benefits, companies still struggle to succeed with pay-per-use services. Theoretically, it is common sense that existing service capabilities cannot easily be converted into organizational capabilities for pay-per-use services. Based on multiple case studies, the present article narrows down the existing empirical and theoretical gaps through an inductive research approach. Our findings make the following contributions to the field of services in product-oriented companies and to the servitization literature. We describe the organizational capabilities necessary for pay-per-use services (e.g., financing such services, aligning costs with equipment usage, and collaborating with customers). We reveal that companies should convert these capabilities into three core competencies (strategizing pay-per-use services, utilizing technologies for pay-per-use services, and de-risking pay-per-use services), in order to achieve competitive advantages.

Place, publisher, year, edition, pages
ELSEVIER SCIENCE BV , 2017. Vol. 192, p. 157-168
Keywords [en]
Pay-per-use services; Capabilities; Business model innovation; Financing; Knowledge-based view of the firm; Product usage
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-142165DOI: 10.1016/j.ijpe.2016.12.007ISI: 000412041200014OAI: oai:DiVA.org:liu-142165DiVA, id: diva2:1151569
Available from: 2017-10-23 Created: 2017-10-23 Last updated: 2017-10-23

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf