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On Service Innovation and Realization in Manufacturing Firms
Linköping University, Department of Management and Engineering, Industrial Economics. Linköping University, The Institute of Technology.
2015 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Service innovation is increasingly becoming a basis for manufacturing firms to reach and sustain competitive advantages. While traditional product innovation typically includes how new technology can be utilized in new products, service innovation spans a broader area that is not exclusively focused on new technology, but rather how resources can be developed into value propositions and then integrated in the customer’s process in order to support customer value creation through realization. However, manufacturing firms that infuse services struggle with service innovation; this becomes especially evident in the realization phase.

This thesis is a compilation of five papers discussing different aspects of service innovation realization and the inherited challenges. The study builds upon empirical data from four Swedish manufacturing firms that infuse services and develop new value propositions that include both products and services to support customer processes.

The thesis illustrates realization as a phase in service innovation where the firm interacts with its customer in order to adjust, revise and further find new ways of improving the customer’s processes through for example customer training. Realization is characterized by a deployment phase and a post-deployment phase that represent the ongoing relationship between the customer and the firm.

Depending on who has the competencies or ability to integrate the resources that are needed for service innovation, different interaction patterns are identified. Through indirect interaction, the firm facilitates the customer’s value creation through, for example, preventive maintenance, while through direct interaction the firm acts as a co-creator in the service innovation process and hence work jointly together with the customer in order to improve customer value creation.

This thesis contributes to the literature by characterizing service innovation realization and by increasing the understanding for different interaction patterns in the service innovation process.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2015. , 71 p.
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1675
Keyword [en]
Service innovation, realization, manufacturing firm, co-creation
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:liu:diva-117965DOI: 10.3384/diss.diva-117965ISBN: 978-91-7519-053-2 (print)OAI: oai:DiVA.org:liu-117965DiVA: diva2:812482
Public defence
2015-06-05, ACAS, A-huset, Campus Valla, Linköping, 13:15 (Swedish)
Opponent
Supervisors
Available from: 2015-05-19 Created: 2015-05-19 Last updated: 2015-05-19Bibliographically approved
List of papers
1. The evolution of service innovation research: A critical review and synthesis
Open this publication in new window or tab >>The evolution of service innovation research: A critical review and synthesis
2014 (English)In: Service Industries Journal, ISSN 0264-2069, E-ISSN 1743-9507, Vol. 34, no 5, 373-398 p.Article in journal (Refereed) Published
Abstract [en]

The number of service innovation articles has increased dramatically in the past 25 years. By reviewing 128 articles published between 1986 and 2010, primarily in leading marketing and innovation journals, this study analyzes the progression of service innovation research according to topicality and perspective. The authors summarize prior research by clustering it into three evolutional phases and drawing parallels with the evolution of the wider services marketing field. Overall, the view of service innovation has evolved, from a complement of traditional product innovation to a multidimensional, all-encompassing notion that entails several functions, both within and outside the firm.

Place, publisher, year, edition, pages
Routledge, 2014
Keyword
service innovation, service development, product development, review article
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-95805 (URN)10.1080/02642069.2013.780044 (DOI)000334060600001 ()
Available from: 2013-07-24 Created: 2013-07-24 Last updated: 2017-12-06
2. A lean approach to service productivity improvements: Synergy or oxymoron?
Open this publication in new window or tab >>A lean approach to service productivity improvements: Synergy or oxymoron?
2013 (English)In: Managing Service Quality, ISSN 0960-4529, E-ISSN 1758-8030, Vol. 23, no 4, 291-304 p.Article in journal (Refereed) Published
Abstract [en]

Purpose – Service productivity continues to receive ever-greater amounts of attention as service covers a greater portion of the economy. As competition increases, service productivity becomes increasingly important. This study aims to explore the applicability of lean principles in a service context and to conceptualize how these principles impact service productivity.

Design/methodology/approach – This paper presents a conceptual analysis of the six most commonly used lean principles in manufacturing and their applicability to a service context for different types of services. Using this analysis, six propositions are developed to examine the influence of lean on service productivity.

Findings – This study suggests promising synergies, as well as important obstacles, for applying lean principles in services. Standardizing services and increasing reliability in service processes through lean principles can increase efficiency. However, the customer's active role in certain services and, simultaneously, high diversity make the application of lean principles increasingly difficult. Also, customer satisfaction must be considered when improving service productivity, otherwise the positive long-term effects of a lean approach in service will be absent.

Practical implications – These findings are useful for organizations aiming to improve their service productivity. Particularly, lean principles are invaluable to increase efficiency and customer satisfaction for services with low diversity and low customer participation. This paper suggests a direction for the proper use of lean principles for different service types, and how efficiency and customer satisfaction are affected through a lean approach.

Originality/value – This study contributes to the research on service productivity and continues the discussion on prototypic characteristics of service and manufacturing orientations.

National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-95804 (URN)10.1108/MSQ-04-2013-0052 (DOI)000321087100003 ()
Available from: 2013-07-24 Created: 2013-07-24 Last updated: 2017-12-06
3. Service process modularization and modular strategies
Open this publication in new window or tab >>Service process modularization and modular strategies
2014 (English)In: The journal of business & industrial marketing, ISSN 0885-8624, E-ISSN 2052-1189, Vol. 29, no 4, 313-323 p.Article in journal (Refereed) Published
Abstract [en]

Purpose - This paper aims to investigate the role of service modularity in developing and deploying efficient services, while at the same time meeting diverse customer needs. The analysis distinguishes between different service types and sets forth key issues for service modularization, identifying supporting resources (both internal and customer) and associated modular strategies for the different types. Design/methodology/approach - The study design used an exploratory case study approach, focusing on three Swedish manufacturing firms that are moving toward an increased service focus (service infusion). Data were collected through interviews and focus groups, and the collected data were analyzed independently, before being merged and synthesized in a cross-case analysis. Themes and patterns were extracted and linked to the theoretical framework following a systematic combining process. Findings - This study contributes insights to the emerging field of service modularity by investigating process modularization and modular strategies. A framework is put forward outlining modular strategies for four different service types covering both a passive and an active role for a customer. From a theoretical point of view, the role of the customer is added to the discussion to advocate for the necessity of a co-creative perspective in service modularity. Originality/value - This article contributes to the emerging research field of service modularity by providing empirical insights into how modularization and modular strategies can enable more efficient services. Depending on service type, different modular strategies are set forth. This study also highlights the need to recognize customer-specific activities, resources and competencies as pivotal parts of the modular service processes. Such insights are particularly relevant given the established view of service modules as functions of intra-firm activities.

Place, publisher, year, edition, pages
Emerald, 2014
Keyword
Service development; B2B services; Modular strategies; Modularization; Service deployment; Service modularity
National Category
Economics and Business
Identifiers
urn:nbn:se:liu:diva-111304 (URN)10.1108/JBIM-08-2013-0170 (DOI)000341888300006 ()
Available from: 2014-10-14 Created: 2014-10-14 Last updated: 2017-12-05
4. Triadic value propositions: When it takes more than two for tango
Open this publication in new window or tab >>Triadic value propositions: When it takes more than two for tango
2016 (English)In: Service Science, ISSN 2164-3962, E-ISSN 2164-3970, Vol. 8, no 3, 282-299 p.Article in journal (Refereed) Published
Abstract [en]

Value propositions are reciprocal resource-integration promises and value alignment mechanisms, operating to and from actors seeking an equitable exchange. In a business triad any change between two of the actors will also affect the relationships with the third actor, thus influencing resource integration and value creation on a value constellation level. The objective of this paper is to conceptualize a triadic value proposition and analyze how service innovation changes the structural, economic, and social ties between the actors in the triad. Through a qualitative empirical enquiry, we study a six-year process in which a multinational industry incumbent enters the service business. Data comes primarily from interviews with respondents from the manufacturer, dealers, and users. As the value proposition evolves over time, the network ties and thus the interdependence between manufacturer, dealer, and user are strengthened. The findings provide firms a better understand of how to involve and collaborate with key actors in order to initiate a discontinuous change on a firm and network level. This is particularly timely given the major difficulties product firms face when intermediaries play a decisive role for the success of their service innovation initiatives.

Place, publisher, year, edition, pages
Institute for Operations Research and the Management Sciences (INFORMS), 2016
Keyword
Value proposition; network ties; relationship development; service innovation; longitudinal research
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-117961 (URN)10.1287/serv.2016.0145 (DOI)000390566500004 ()
Note

Previous status of this article was Manuscript.

Available from: 2015-05-19 Created: 2015-05-19 Last updated: 2017-12-04Bibliographically approved
5. Who Involves Whom?: Interaction modes in service innovation
Open this publication in new window or tab >>Who Involves Whom?: Interaction modes in service innovation
2015 (English)Manuscript (preprint) (Other academic)
Abstract [en]

Purpose: Collaboration with customers and the involvement of a customer’s resources have been regarded as a key issues in the service innovation process. However, research that covers collaboration in service innovation tends to have a one-sided focus, as it especially concentrates on the involvement of customer resources in the firm’s development of the offering per se and hence foresees the firm’s involvement of resources in the later part of the service innovation. Therefore, the purpose of this study is to analyze resource involvement from both the firm and the customer in the service innovation process.

Design/methodology/approach: The study used an exploratory case study approach, focusing on two Swedish manufacturing firms in a business-to-business context that add services to their core product offerings (service infusion). Data was collected through interviews and focus groups.

Findings: The study found that different types of interaction modes are related to the integration of varying key resources from both the firm and the customer. A typology of interaction modes in service innovation, based on different levels of involvement, is developed.

Managerial implications: Increased and more specific knowledge of the customer’s resources is required in order to manage and coordinate how and with what resources the customer and the firm should contribute to the service innovation process.

Originality/Value: The previous service innovation literature tends to focus on how the customer can be involved in the firm’s development of offerings per se. This article suggests that focus should also include the firm’s involvement in the later phases of the service innovation process. The study contributes to the research on involvement in service innovation by showing how resources from both the customer and the firm are integrated in the service innovation process.

Keyword
Service innovation, involvement, resource integration, co-creation, B2B, reciprocity.
National Category
Economics and Business
Identifiers
urn:nbn:se:liu:diva-117962 (URN)
Available from: 2015-05-19 Created: 2015-05-19 Last updated: 2015-05-19Bibliographically approved

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