Paths to Service Capability Development for Servitization

Examining an Internal Service Ecosystem

Marin Jovanovic, Jawwad Raja, Ivanka Visnjic, Frank Wiengarten

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

There is a need to examine the internal service ecosystem perspective to understand how the capability development process unfolds. To achieve this, an embedded case study of ten subsidiaries of a large multinational capital equipment manufacturer was conducted to analyze how front- and back-office capability development progresses across the subsidiaries. Three different paths for capability development were identified, indicating: (i) the sequential development of capabilities and capability renewal; (ii) difficulties of capability replication; and (iii) capability retrenchment and service dilution. It is argued that a lack of interaction between the front- and back-office may constrain progress in terms of realizing efficiencies through the standardization of offerings, processes, and performance measures. Important managerial implications indicate the need to manage an internal service ecosystem that allows for capability replication, which requires a strong center to leverage learning.
Original languageEnglish
JournalJournal of Business Research
Volume104
Pages (from-to)472-485
Number of pages14
ISSN0148-2963
DOIs
Publication statusPublished - Nov 2019

Bibliographical note

Published online: 31. May 2019

Keywords

  • Servitization
  • Service capability development
  • Internal service ecosystem
  • Front- and back-office

Cite this

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title = "Paths to Service Capability Development for Servitization: Examining an Internal Service Ecosystem",
abstract = "There is a need to examine the internal service ecosystem perspective to understand how the capability development process unfolds. To achieve this, an embedded case study of ten subsidiaries of a large multinational capital equipment manufacturer was conducted to analyze how front- and back-office capability development progresses across the subsidiaries. Three different paths for capability development were identified, indicating: (i) the sequential development of capabilities and capability renewal; (ii) difficulties of capability replication; and (iii) capability retrenchment and service dilution. It is argued that a lack of interaction between the front- and back-office may constrain progress in terms of realizing efficiencies through the standardization of offerings, processes, and performance measures. Important managerial implications indicate the need to manage an internal service ecosystem that allows for capability replication, which requires a strong center to leverage learning.",
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Paths to Service Capability Development for Servitization : Examining an Internal Service Ecosystem. / Jovanovic, Marin; Raja, Jawwad; Visnjic, Ivanka ; Wiengarten, Frank .

In: Journal of Business Research, Vol. 104, 11.2019, p. 472-485.

Research output: Contribution to journalJournal articleResearchpeer-review

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AB - There is a need to examine the internal service ecosystem perspective to understand how the capability development process unfolds. To achieve this, an embedded case study of ten subsidiaries of a large multinational capital equipment manufacturer was conducted to analyze how front- and back-office capability development progresses across the subsidiaries. Three different paths for capability development were identified, indicating: (i) the sequential development of capabilities and capability renewal; (ii) difficulties of capability replication; and (iii) capability retrenchment and service dilution. It is argued that a lack of interaction between the front- and back-office may constrain progress in terms of realizing efficiencies through the standardization of offerings, processes, and performance measures. Important managerial implications indicate the need to manage an internal service ecosystem that allows for capability replication, which requires a strong center to leverage learning.

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