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Causal or effectual? Dynamics of decision making logics in servitization
Business School, Nankai University, Tianjin, China.
Business School, Soochow University, Taipei, China.
Business School, Tianjin University of Finance and Economics, Tianjin, China.
Jönköping University, Jönköping International Business School, JIBS, Business Administration.ORCID iD: 0000-0002-9269-2635
2019 (English)In: Industrial Marketing Management, ISSN 0019-8501, E-ISSN 1873-2062Article in journal (Refereed) Epub ahead of print
Abstract [en]

This study explores servitization as an innovative market strategy for manufacturers and investigates how the decision making logics change over time in the servitization transformation process. Effectuation theory is applied to examine servitization as a new theoretical exploration. A longitudinal case study of a global heavy vehicle manufacturer's servitization process in China reveals that the decision makers adjust their decision making logics depending on the stage of the servitization process and associated risk patterns. As the servitization process evolves into a more sophisticated stage, decision makers will change their decision making logics from a causation dominant logic to an effectuation dominant logic in order to cope with the increased risks. Effectuation theory originally developed from entrepreneurship research is found to be a valid theory for the explanation of the risk and uncertainty control behaviors in the servitization transformation process of manufacturing firms. 

Place, publisher, year, edition, pages
Elsevier, 2019.
Keywords [en]
Decision making logic, Effectuation theory, Risk control, Risk pattern, Servitization
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-43541DOI: 10.1016/j.indmarman.2019.03.013Scopus ID: 2-s2.0-85063460400Local ID: ;IHHÖvrigtISOAI: oai:DiVA.org:hj-43541DiVA, id: diva2:1307167
Available from: 2019-04-26 Created: 2019-04-26 Last updated: 2019-04-26

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Hertz, Susanne

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