Product-service innovation and performance:the role of collaborative partnerships and R&D intensity

R and D Management, Special Issue: Industry and International Aspects on R&D Management Funding: European Commission under the Horizon 2020 -MAKERS project: Smart Manufacturing for EU Growth and Prosperity, Spanish Government (grant nr. ECO2014-58472-R), Junta de Andalusia (grant nr. P11SEJ-792 7294) and EPSRC (grant nr. EP/K014064/1, EP/K014072/1 and EP/K014080/1)Treating the intersection of the strategic partnerships, R&D intensity and servitisation literatures, this study explores empirically whether external collaborative service development and provision and industrial R&D intensity help to unpack the complex relation between product-service innovation (servitisation) and performance. We argue that manufacturing firms implementing services benefit from strategic partnerships with Knowledge-Intensive Business Service (KIBS) firms. KIBS partnering provides opportunities for downsizing, externalising risks and sharing knowledge. Additionally, manufacturers in R&D-intensive industries are more likely to benefit from implementing service provision than firms in other sectors because of industry dynamics and reduced customer uncertainty. The study surveys executives in 370 large manufacturers worldwide. Results reinforce the importance of concentric strategic partnerships to successful product-service innovation in high R&D industries.authorsversionpublishe

Digital Servitization: The Next “Big Thing” in Manufacturing Industries

Part 8: Designing and Delivering Smart Services in the Digital AgeInternational audienceManufacturing firms increasingly produce and provide services along with their traditional physical products. This process, better known as servitization, is a mature theme in the literature, flourishing in recent years. Digital disruption is propelling manufacturers to move on towards digital transformation and deliver digital services. Prior research investigated the impact of servitization measured by the traditional services. However, the role of digital technologies in manufacturing is neglected. This paper intends to shed light on the impact of digital service portfolio antecedents on firm performance. Our analysis used the Serbian dataset of 240 manufacturing firms from the European Manufacturing Survey conducted in 2018. The empirical results show that, in manufacturing firms, digital services can significantly increase the turnover ratio. Results indicate that management in manufacturing companies should utilize digital services such as Web-based services for customized product design and Web-based offers for product utilization to maximize firm’s turnover ratio and upgrade current service business model

The Moderating Role of Tangibility in Synchronous Innovation in Services

A synchronous pattern of innovation as between technological and management innovation, for example, can help firms improve their performance. This article explores this idea with respect to servitizing companies that introduce service delivery innovation as a means of gaining competitive advantage. It finds that the degree of tangibility, an indicator of the firm’s position on the product–service continuum, affects whether and how managers recognize the need for management innovation when introducing service delivery innovation. Using a socio‐technical perspective in conjunction with insights from managerial cognition, the relationship between management innovation and two central types of service delivery innovation—technological and customer interface—is examined. Tangibility shapes the managerial cognitive structures that are related to the enterprise’s technical and social subsystems in a paradigm that is capable of demonstrating contrasting effects. Technological delivery innovation is related to management innovation in firms with high tangibility. Customer interface delivery innovation, on the other hand, relates to management innovation in firms with low tangibility. This study uses a sample of diverse firms with varying degrees of tangibility to provide support for this theory