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  • 1.
    Lenka, Sambit
    Luleå tekniska universitet, Innovation och Design.
    Managing the Transformation Towards Advanced Service Provision: A Multilevel Framework of Servitization2018Doctoral thesis, comprehensive summary (Other academic)
    Abstract [en]

    Product-oriented firms are increasingly moving towards providing services to customers in a bid to differentiate their offerings, increase customer loyalty, and achieve higher, more stable revenue streams. This trend of servitization is becoming ubiquitous in manufacturing firms. These firms increasingly invest resources in efforts to offer basic and advanced services. Basic services focus on supporting the functioning of the product and increasing its efficiency. But advanced services focus on helping customers achieve their desired outcomes. Providing advanced services holds potential of greater benefits for the manufacturing firms, but a closer look indicates that most firms still largely offer basic services. This is because, advanced services demand greater intensity in relationships with customers, a higher degree of customization, and a sharper focus on assisting customers in their own value creation processes.

     

    Offering advanced services is more risky, complex, and difficult to execute. Therefore, significant changes must be made in terms of company culture, structures, processes, capabilities, and business models. In fact, servitizing firms must transform almost every aspect of the way they do business – from their business strategy to their capabilities, organizational structure, culture, mindset, and business logic. This transformation towards advanced services therefore affects all levels of the firm: strategic, operational, and individual levels. Although prior studies have explored many aspects of the challenges involved in the transformation towards advanced services, they typically focus on function-specific practices without linking initiatives at other organizational levels. The literature lacks a multilevel understanding of the transformation process. Such an understanding could provide a better understanding of the transformation process, linking various aspects at multiple levels within the firm. To address this gap, this dissertation aims to improve our understanding of multilevel transformation towards advanced service provision in manufacturing firms.

     

    Based on extensive qualitative studies with 13 leading Swedish manufacturing firms engaged in servitization, this dissertation provides a framework that shows how manufacturing firms experience ambivalence (i.e. the simultaneous pull in opposite directions) during transformation and how this affects the firm at the strategic, operational, and individual levels. The dissertation provides specific insights of how individual actions enable capability building for advanced services and how capabilities for advanced services help address business model alignment problems, thereby supporting transformation towards advanced service provision. This dissertation extends our understanding of how various aspects at multiple levels within a manufacturing firm are linked during the transformation towards advanced service provision. It marks one of the initial attempts in the servitization research to provide a multilevel explanation of firms’ overall transformation from providers of products to providers of advanced services.

     

    This dissertation also uses the lens of ambivalence to provide insights into co-existing product and service orientations and their consequences during servitization. Ambivalence theories have been associated with individuals and have been applied in the sociopsychology literature. This dissertation extends these theories to the organizational context and the servitization literature. It also identifies specific capabilities that can help manufacturing firms in their transformation towards advanced services. Specifically, it redefines digitalization capability and shows how this capability is one of the most important capabilities that manufacturing firms must develop to transform into advanced service providers. This dissertation also provides a capability maturity model that can help guide the capability development process in manufacturing firms. Finally, this dissertation contributes to our understanding of the role of individuals in the transformation process within firms. This is one of the first systematic attempts to provide a microfoundation-based view of individual-level influences on higher-level outcomes in the servitization literature.

     

     

  • 2.
    Lenka, Sambit
    et al.
    Luleå tekniska universitet, Innovation och Design.
    Frishammar, Johan
    Luleå tekniska universitet, Innovation och Design.
    Parida, Vinit
    Luleå tekniska universitet, Innovation och Design.
    Development of integrated product/service offers through integration, or not?: A multiple case study of global manufacturing firms2015Conference paper (Other academic)
    Abstract [en]

    In a world where advanced engineering products are commoditized, many manufacturing companies now strive to improve differentiation and profitability by offering integrated combinations of products and services known as product-service systems (PSS). Prior literature has proposed that such integrated offers be developed through an integrated product/service development process, but has so far not studied such integration in detail. To this background, our purpose is to study how integrated product/service offers actually come about. Our results are somewhat surprising, and paradoxical. Through an inductive multiple case study across eight multinational companies, we find that effective alignment-not integration-is the key to developing successful integrated PSS offerings. Thus, an integrated PSS offer seems to be reached through alignment rater than integration. The paper also identifies the key factors that inhibit integration and the various mechanisms that support alignment, and provides theoretical implications for literature and managerial implications for better development of integrated PSS solutions.

  • 3.
    Lenka, Sambit
    et al.
    Luleå tekniska universitet, Innovation och Design.
    Parida, Vinit
    Luleå tekniska universitet, Innovation och Design.
    Rönnberg Sjödin, David
    Luleå tekniska universitet, Innovation och Design.
    Wincent, Joakim
    Luleå tekniska universitet, Innovation och Design.
    Digitalization and advanced service innovation: How digitalization capabilities enable companies to co-create value with customers2016In: Management of Innovation and Technology, ISSN 2001-208X, no 3, p. 2-4Article in journal (Other (popular science, discussion, etc.))
    Abstract [en]

    In the context of increasing connectivity and the omnipresence of information technology in manufacturing industry, adopting digital technologies is changing the very nature of how innovation occurs and the products-services offered by manufacturing companies to their customers.

  • 4.
    Lenka, Sambit
    et al.
    Luleå tekniska universitet, Innovation och Design.
    Parida, Vinit
    Luleå tekniska universitet, Innovation och Design.
    Rönnberg Sjödin, David
    Luleå tekniska universitet, Innovation och Design.
    Wincent, Joakim
    Luleå tekniska universitet, Innovation och Design.
    Exploring the microfoundations of servitization: How individual actions overcome organizational resistance2018In: Journal of Business Research, ISSN 0148-2963, E-ISSN 1873-7978, p. 328-336Article in journal (Refereed)
    Abstract [en]

    Servitization research has principally focused on the transition of organizational-level strategy, systems, capabilities, and processes for firms to be able to offer advanced services to their customers. Less is known of the underlying microfoundational dynamics of such transitions at the individual-level. Based on a multiple case study of six large multinational industrial firms engaged in servitization efforts, this paper identifies the tactics (i.e., evangelizing, bootlegging, leveraging, and collaborating) that individuals adopt to overcome organizational resistance to servitization. This study also presents the conditions that are necessary for individual employees to adopt these tactics. The present study provides theoretical and practical implications of the microfoundations of servitization, focusing attention on individual-level actions that affect the outcomes at the organizational-level to drive servitization efforts.

  • 5.
    Lenka, Sambit
    et al.
    Entrepreneurship and Innovation Group, Department of Business Administration, Technology and Social Sciences, Luleå University of Technology, Luleå, Sweden.
    Parida, Vinit
    Entrepreneurship and Innovation Group, Department of Business Administration, Technology and Social Sciences, Luleå University of Technology, Luleå, Sweden.
    Sjödin, David Rönnberg
    Entrepreneurship and Innovation Group, Department of Business Administration, Technology and Social Sciences, Luleå University of Technology, Luleå, Sweden.
    Wincent, Joakim
    Entrepreneurship and Innovation Group, Department of Business Administration, Technology and Social Sciences, Luleå University of Technology, Luleå, Sweden.
    Towards a multi-level servitization framework: Conceptualizing ambivalence in manufacturing firms2018In: International Journal of Operations & Production Management, ISSN 0144-3577, E-ISSN 1758-6593, Vol. 38, no 3, p. 810-827Article in journal (Refereed)
    Abstract [en]

    Purpose: The dominant-view within servitization literature presupposes a progressive transition from product to service orientation. In reality, however, many manufacturing firms maintain both product and service orientations throughout their servitization journey. Using the theoretical lens of organizational ambivalence, the purpose of this paper is to explore the triggers, manifestation and consequences of these conflicting orientations.

    Design/methodology/approach: A multiple case study method was used to analyze five large manufacturing firms that were engaged in servitization. Semi-structured interviews were conducted with 35 respondents across different functions within these firms.

    Findings: Servitizing firms experience organizational ambivalence during servitization because of co-existing product and service orientations. This paper provides a framework that identifies the triggers of this ambivalence, its multi-level manifestation and its consequences. These provide implications for explaining why firms struggle to implement servitization strategies due to co-existing product and services orientations. Understanding organizational ambivalence, provides opportunity to manage related challenges and can be vital to successful servitization.

    Originality/value: Considering the theoretical concept of ambivalence could advance the understanding of the effects and implications of conflicting orientations during servitization in manufacturing firms. 

  • 6.
    Lenka, Sambit
    et al.
    Luleå University of Technology, Entrepreneurship and Innovation, Sweden.
    Parida, Vinit
    Luleå University of Technology, Entrepreneurship and Innovation, Sweden.
    Sjödin, David Rönnberg
    Luleå University of Technology, Entrepreneurship and Innovation, Sweden.
    Wincent, Joakim
    Luleå University of Technology, Entrepreneurship and Innovation, Sweden.
    Eriksson, Joakim
    Volvo Construction Equipment, Sweden.
    Role conflicts in R&D units undergoing pss transition2015In: IAMOT 2015 - 24th International Association for Management of Technology Conference: Technology, Innovation and Management for Sustainable Growth, Proceedings / [ed] G. A. Thopil & L. Pretorius, Graduate School of Technology Management, University of Pretoria , 2015, p. 579-590Conference paper (Refereed)
    Abstract [en]

    Recent trends in manufacturing industries, is the movement of firms towards providing industrial services or product-service systems (PSS). Importance of this phenomenon has been acknowledged as imperative for strategic differentiation, maintaining competitiveness, increase profitability and be environmentally sustainable. Although a lot of studies have focussed on the benefits of PSS provision, yet very less is know about the challenges of such transition, especially at the functional unit level within an organsiation. Our study focusses on the R&D unit and the various role conflicts that emerges as the function of the unit moves from being based on legal structure to that based on collegial authotiry in the PSS transition process. In a cross-case analysis of large manufacturing companies involved in PSS transition, we identified how role conflicts occur at the organisation, unit and intra-unit levels. Our findings contribute to role conflict literature and in the context of PSS and R&D units. We also observe that role conflict operates not just at the individual member level but at various levels within the organisation and the R&D unit, which has not been observed previously. We contribute by showing that an understanding of these challenges can be the differentiating factor for successful implementation and managing transition towards PSS that have been previously neglected in PSS and R&D literature as well.

  • 7.
    Lenka, Sambit
    et al.
    Luleå tekniska universitet, Innovation och Design.
    Parida, Vinit
    Luleå tekniska universitet, Innovation och Design.
    Wincent, Joakim
    Luleå tekniska universitet, Innovation och Design.
    Digitalization Capabilities as Enablers of Value Co-Creation in Servitizing Firms2017In: Psychology & Marketing, ISSN 0742-6046, E-ISSN 1520-6793, Vol. 34, no 1, p. 92-100Article in journal (Refereed)
    Abstract [en]

    As manufacturing companies pursue a servitization strategy, they are increasingly relying on developing digitalization capabilities to interact and co-create value with their customers. However, many lack an understanding of what constitutes digitalization capabilities and how they can create value with customers. To address these questions, the study builds on qualitative data from four industrial manufacturing firms to conceptualize three underlying subcomponents of digitalization capabilities, namely, intelligence capability, connect capability, and analytic capability. The study identifies and explains how digitalization capabilities enable value co-creation with customers through perceptive and responsive mechanisms. This study contributes to the servitization literature by showcasing how digitalization capabilities are enabling value co-creation in a business-to-business context.

  • 8.
    Lenka, Sambit
    et al.
    Luleå tekniska universitet, Innovation och Design.
    Sjödin, David Rönnberg
    Luleå tekniska universitet, Innovation och Design.
    Parida, Vinit
    Luleå tekniska universitet, Innovation och Design.
    Wincent, Joakim
    Luleå tekniska universitet, Innovation och Design.
    How individual tactics facilitate servitization efforts in manufacturing firms2017Conference paper (Other academic)
  • 9.
    Parida, Vinit
    et al.
    Luleå tekniska universitet, Innovation och Design.
    Sjödin, David Rönnberg
    Luleå tekniska universitet, Innovation och Design.
    Lenka, Sambit
    Luleå tekniska universitet, Innovation och Design.
    Wincent, Joakim
    Luleå tekniska universitet, Innovation och Design.
    Developing global service innovation capabilities: How global manufacturers address the challenges of market heterogeneity2015In: Research technology management, ISSN 0895-6308, E-ISSN 1930-0166, Vol. 58, no 5, p. 35-44Article in journal (Refereed)
    Abstract [en]

    As multinational manufacturing companies pursue service innovation toward global markets, their back-end development units (i.e. R&D headquarters) face immense challenges due to market heterogeneity. Our extensive studies of 14 leading multinational companies in service innovation have identified, analyzed, and ranked challenges to reveal the key steps to building necessary capabilities. Based on our analysis, we explain how back-end units develop four sub-dimensions of global service innovation capabilities (service offerings, digitalization, customer insights, and integrating global knowledge) to manage their relationships with regional front-end units and subsequently drive service innovation. In developing these capabilities, the back-end units progressively learn to collaborate, integrate, and orchestrate processes and activities across and within regional front-end units, customers, and service partners from heterogeneous global markets.

  • 10.
    Reim, Wibeke
    et al.
    Luleå tekniska universitet, Innovation och Design.
    Lenka, Sambit
    Luleå tekniska universitet, Innovation och Design.
    Frishammar, Johan
    Luleå tekniska universitet, Innovation och Design.
    Parida, Vinit
    Luleå tekniska universitet, Innovation och Design.
    Implementing sustainable product–service systems utilizing business model activities2017In: Procedia CIRP, ISSN 2212-8271, E-ISSN 2212-8271, Vol. 64, p. 61-66Article in journal (Refereed)
    Abstract [en]

    To stay competitive and comply with government legislation, many global manufacturing companies try to diminish their environmental impact and avoid commoditization of their products by offering sustainable product–service systems (PSS). Offering PSS successfully is highly challenging, however, and significant interfirm heterogeneity exists with regard to successful PSS provision. Based on multiple case studies in two global manufacturing companies, the importance of the business model as an organizing device to align and coordinate key activities and scarce resources in PSS is highlight. The analysis provides insights into the underlying building blocks that will help firms implement a PSS business model and provides new implications for analyzing and improving PSS offers.

  • 11.
    Sjödin, David Rönnberg
    et al.
    Luleå tekniska universitet, Innovation och Design.
    Parida, Vinit
    Luleå tekniska universitet, Innovation och Design.
    Lenka, Sambit
    Luleå tekniska universitet, Innovation och Design.
    Wincent, Joakim
    Luleå tekniska universitet, Innovation och Design.
    Vägen till tjänsteinnovationer hos globala tillverkningsföretag: Från samarbetande till integrerande och slutligen dirigerande förmågor2015In: Management of Innovation and Technology, ISSN 2001-208X, no 3, p. 3-5Article in journal (Other (popular science, discussion, etc.))
    Abstract [sv]

    Då multinationella tillverkningsföretag strävar efter att utveckla tjänsteinnovationer mot globala marknader, står huvudkontorens forsknings och utvecklingsenheter (FoU) inför enorma utmaningar på grund av omfattande heterogenitet i marknadsförutsättningar, kundbehov och leveransförutsättningar. I våra studier av 13 ledande multinationella tillverkningsföretag fokuserade mot ökad tjänsteinnovation, har vi identifierat fyra kompetenser som speciellt viktiga för utveckling av globala tjänsteinnovationsförmågor: utveckling av kundinsikt, integration av innovationsförmågor, skapande av ett globalt tjänsteutbud och bygga en digitaliseringskapacitet.

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