Only the Brave: Product Innovation, Service Business Model Innovation, and Their Impact on Performance

Accepted version
Repository DOI

Type
Article
Change log
Authors
Visnjic, I 
Wiengarten, F 
Abstract

jats:pRecent empirical findings concerning the performance effects of service business model innovation (servitization) and its interplay with product innovation are mixed. Using the lenses of the demand‐based view on value creation and complementarity, the performance impact of two key service business models is examined: the product‐oriented model and the customer‐oriented model, implemented jointly with product innovation. Results indicate that the interplay between service business model innovation and product innovation results in long‐term performance benefits coupled with a degree of short‐term performance sacrifice. Service business model innovation in isolation from product innovation results in short‐term profit gains but long‐term knowledge loss and, thus, market performance decline. Our study suggests that firms need to look beyond the evidence on short‐term effects in order to achieve superior performance in the long run.</jats:p>

Description
Keywords
product-service system, servitization, open-service innovation, resource-based view, customer utility, firm performance
Journal Title
Journal of Product Innovation Management
Conference Name
Journal ISSN
0737-6782
1540-5885
Volume Title
33
Publisher
Wiley
Sponsorship
Royal Academy of Engineering (RAEng) (unknown)
Engineering and Physical Sciences Research Council (EP/K003542/1)