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Make-or-buy configurational approaches in product-service ecosystems and performance

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  • Bustinza, Oscar F.
  • Lafuente, Esteban
  • Rabetino, Rodrigo
  • Vaillant, Yancy
  • Vendrell-Herrero, Ferran

Abstract

This research examines firm boundary configurations for manufacturers' product-service offerings. We argue that the building of a product-service ecosystem through collaboration with service providers in certain types of business services can increase performance as a result of the superior knowledge-based resources coming from specialized partners. By using fuzzy set qualitative analysis on a sample of 370 multinational manufacturing enterprises (MMNEs), the results reveal that effective servitization is heterogeneous across manufacturing industries and across business service offerings. The findings indicate that most industries achieve their highest performance through collaborations with value-added service providers in two out of three of the service continuum stages (Base and Intermediate services); while keeping the development of Advanced services in-house. The results help to contextualize the best practices for implementing service business models in MMNEs by detailing which service capabilities should be retained in-house and which should be outsourced to specialized partners in various industrial contexts.

Suggested Citation

  • Bustinza, Oscar F. & Lafuente, Esteban & Rabetino, Rodrigo & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2019. "Make-or-buy configurational approaches in product-service ecosystems and performance," Journal of Business Research, Elsevier, vol. 104(C), pages 393-401.
    • Handle: RePEc:eee:jbrese:v:104:y:2019:i:c:p:393-401
    DOI: 10.1016/j.jbusres.2019.01.035
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    7. Wim Coreynen & Arjen van Witteloostuijn & Johanna Vanderstraeten, 2021. "Toward Servitized Research: An Integrated Approach for Sustainable Product-Service Innovation," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
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    20. Huikkola, Tuomas & Kohtamäki, Marko & Ylimäki, Juho, 2022. "Becoming a smart solution provider: Reconfiguring a product manufacturer's strategic capabilities and processes to facilitate business model innovation," Technovation, Elsevier, vol. 118(C).
    21. Horváth, Krisztina & Berbegal-Mirabent, Jasmina, 2022. "The role of universities on the consolidation of knowledge-based sectors: A spatial econometric analysis of KIBS formation rates in Spanish regions," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    22. D’Amico, Elettra & Belitski, Maksim & Colombelli, Alessandra, 2023. "Evaluating Internal and External Knowledge Sources in Adopting Artificial Intelligence," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202315, University of Turin.
    23. Story, Vicky & Zolkiewski, Judy & Verleye, Katrien & Nazifi, Amin & Hannibal, Claire & Grimes, Anthony & Abboud, Liliane, 2020. "Stepping out of the shadows: Supporting actors’ strategies for managing end-user experiences in service ecosystems," Journal of Business Research, Elsevier, vol. 116(C), pages 401-411.

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