The focal question that we address is about how firms transition their IT product capabilities to the IT services capabilities. In particular, we were interested in exploring the unexpected observation that some incumbent firms in the Japanese IT industry were able to leapfrog capability development for transitioning to the IT services model, while others struggled to do so. We use a multi-method (Mingers 2001) approach consisting of four complementary stages for addressing the research question: (a) multiple case studies in eleven leading Japanese IT firms, (b) a large scale survey of division managers in 208 firms in Japan, (c) quantitative sequence analysis of archival product development logs for over 1,800 IT products in 208 Japanese firms during the ongoing transition, and (d) a Monte Carlo simulation of a subset of the insights obtained in the preceding stages
