IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v112y2020icp478-491.html
   My bibliography  Save this article

An agile co-creation process for digital servitization: A micro-service innovation approach

Author

Listed:
  • Sjödin, David
  • Parida, Vinit
  • Kohtamäki, Marko
  • Wincent, Joakim

Abstract

In this paper, we explore how manufacturing firms and their customers co-create digital service innovations in an attempt to address the digitalization paradox. We present empirical insights from a case study of four manufacturers and their customer relationships. The results suggest that value co-creation in digital servitization is best managed through an agile micro-service innovation approach. Such an approach requires incremental micro-service investments, sprint-based micro-service development, and micro-service learning by doing to ensure customized and scalable digital service offerings. The proposed agile co-creation model provides insight into the phases, activities, and organizational principles of a micro-service innovation approach. Relational teams that pool knowledge from providers’ and customers’ strategic, technological, and operational areas are crucial to ensure successful cooperation and governance for agile co-creation. This paper offers insight into how companies engage in agile co-creation processes, with important recommendations for innovation in manufacturing firms in the era of digitalization.

Suggested Citation

  • Sjödin, David & Parida, Vinit & Kohtamäki, Marko & Wincent, Joakim, 2020. "An agile co-creation process for digital servitization: A micro-service innovation approach," Journal of Business Research, Elsevier, vol. 112(C), pages 478-491.
    • Handle: RePEc:eee:jbrese:v:112:y:2020:i:c:p:478-491
    DOI: 10.1016/j.jbusres.2020.01.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296320300175
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2020.01.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lenka, Sambit & Parida, Vinit & Sjödin, David Rönnberg & Wincent, Joakim, 2018. "Exploring the microfoundations of servitization: How individual actions overcome organizational resistance," Journal of Business Research, Elsevier, vol. 88(C), pages 328-336.
    2. Jovanovic, Marin & Raja, Jawwad Z. & Visnjic, Ivanka & Wiengarten, Frank, 2019. "Paths to service capability development for servitization: Examining an internal service ecosystem," Journal of Business Research, Elsevier, vol. 104(C), pages 472-485.
    3. Cenamor, J. & Rönnberg Sjödin, D. & Parida, V., 2017. "Adopting a platform approach in servitization: Leveraging the value of digitalization," International Journal of Production Economics, Elsevier, vol. 192(C), pages 54-65.
    4. Kohtamäki, Marko & Parida, Vinit & Oghazi, Pejvak & Gebauer, Heiko & Baines, Tim, 2019. "Digital servitization business models in ecosystems: A theory of the firm," Journal of Business Research, Elsevier, vol. 104(C), pages 380-392.
    5. Bianchi, Mattia & Marzi, Giacomo & Guerini, Massimiliano, 2020. "Agile, Stage-Gate and their combination: Exploring how they relate to performance in software development," Journal of Business Research, Elsevier, vol. 110(C), pages 538-553.
    6. Sklyar, Alexey & Kowalkowski, Christian & Tronvoll, Bård & Sörhammar, David, 2019. "Organizing for digital servitization: A service ecosystem perspective," Journal of Business Research, Elsevier, vol. 104(C), pages 450-460.
    7. Federico Adrodegari & Nicola Saccani, 2017. "Business models for the service transformation of industrial firms," The Service Industries Journal, Taylor & Francis Journals, vol. 37(1), pages 57-83, January.
    8. Sjödin, David & Parida, Vinit & Kohtamäki, Marko, 2019. "Relational governance strategies for advanced service provision: Multiple paths to superior financial performance in servitization," Journal of Business Research, Elsevier, vol. 101(C), pages 906-915.
    9. Fernando F. Suarez & Michael A. Cusumano & Steven J. Kahl, 2013. "Services and the Business Models of Product Firms: An Empirical Analysis of the Software Industry," Management Science, INFORMS, vol. 59(2), pages 420-435, November.
    10. Marco Ardolino & Mario Rapaccini & Nicola Saccani & Paolo Gaiardelli & Giovanni Crespi & Carlo Ruggeri, 2018. "The role of digital technologies for the service transformation of industrial companies," International Journal of Production Research, Taylor & Francis Journals, vol. 56(6), pages 2116-2132, March.
    11. Kock, Alexander & Gemünden, Hans Georg, 2016. "Antecedents to Decision-making Quality and Agility in Innovation Portfolio Management," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 85099, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    12. Opresnik, David & Taisch, Marco, 2015. "The value of Big Data in servitization," International Journal of Production Economics, Elsevier, vol. 165(C), pages 174-184.
    13. Gebauer, Heiko & Fleisch, Elgar & Friedli, Thomas, 2005. "Overcoming the Service Paradox in Manufacturing Companies," European Management Journal, Elsevier, vol. 23(1), pages 14-26, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bustinza, Oscar F. & Opazo-Basaez, Marco & Tarba, Shlomo, 2022. "Exploring the interplay between Smart Manufacturing and KIBS firms in configuring product-service innovation performance," Technovation, Elsevier, vol. 118(C).
    2. Tian, Jiamian & Coreynen, Wim & Matthyssens, Paul & Shen, Lei, 2022. "Platform-based servitization and business model adaptation by established manufacturers," Technovation, Elsevier, vol. 118(C).
    3. Kolagar, Milad & Parida, Vinit & Sjödin, David, 2022. "Ecosystem transformation for digital servitization: A systematic review, integrative framework, and future research agenda," Journal of Business Research, Elsevier, vol. 146(C), pages 176-200.
    4. Kohtamäki, Marko & Parida, Vinit & Patel, Pankaj C. & Gebauer, Heiko, 2020. "The relationship between digitalization and servitization: The role of servitization in capturing the financial potential of digitalization," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    5. Linus Thomson & Anmar Kamalaldin & David Sjödin & Vinit Parida, 2022. "A maturity framework for autonomous solutions in manufacturing firms: The interplay of technology, ecosystem, and business model," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 125-152, March.
    6. Shen, Lei & Sun, Wanqin & Parida, Vinit, 2023. "Consolidating digital servitization research: A systematic review, integrative framework, and future research directions," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    7. Mosch, Philipp & Schweikl, Stefan & Obermaier, Robert, 2021. "Trapped in the supply chain? Digital servitization strategies and power relations in the case of an industrial technology supplier," International Journal of Production Economics, Elsevier, vol. 236(C).
    8. Kohtamäki, Marko & Parida, Vinit & Oghazi, Pejvak & Gebauer, Heiko & Baines, Tim, 2019. "Digital servitization business models in ecosystems: A theory of the firm," Journal of Business Research, Elsevier, vol. 104(C), pages 380-392.
    9. Struwe, Sascha & Slepniov, Dmitrij, 2023. "Unlocking digital servitization: A conceptualization of value co-creation capabilities," Journal of Business Research, Elsevier, vol. 160(C).
    10. Chen, Liping & Dai, Yishu & Ren, Fei & Dong, Xiaoying, 2023. "Data-driven digital capabilities enable servitization strategy——From service supporting the product to service supporting the client," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    11. Khanra, Sayantan & Dhir, Amandeep & Parida, Vinit & Kohtamäki, Marko, 2021. "Servitization research: A review and bibliometric analysis of past achievements and future promises," Journal of Business Research, Elsevier, vol. 131(C), pages 151-166.
    12. Culot, Giovanna & Orzes, Guido & Sartor, Marco & Nassimbeni, Guido, 2020. "The future of manufacturing: A Delphi-based scenario analysis on Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    13. Zhou, Dan & Yan, Tingting & Dai, Weiqi & Feng, Junzheng, 2021. "Disentangling the interactions within and between servitization and digitalization strategies: A service-dominant logic," International Journal of Production Economics, Elsevier, vol. 238(C).
    14. Huikkola, Tuomas & Kohtamäki, Marko & Rabetino, Rodrigo & Makkonen, Hannu & Holtkamp, Philipp, 2022. "Overcoming the challenges of smart solution development: Co-alignment of processes, routines, and practices to manage product, service, and software integration," Technovation, Elsevier, vol. 118(C).
    15. Yong Chen & Zhengjie Wu & Wenchao Yi & Bingjia Wang & Jianhua Yao & Zhi Pei & Jiaoliao Chen, 2022. "Bibliometric Method for Manufacturing Servitization: A Review and Future Research Directions," Sustainability, MDPI, vol. 14(14), pages 1-26, July.
    16. Kohtamäki, Marko & Rabetino, Rodrigo & Einola, Suvi & Parida, Vinit & Patel, Pankaj, 2021. "Unfolding the digital servitization path from products to product-service-software systems: Practicing change through intentional narratives," Journal of Business Research, Elsevier, vol. 137(C), pages 379-392.
    17. Leminen, Seppo & Rajahonka, Mervi & Wendelin, Robert & Westerlund, Mika & Nyström, Anna-Greta, 2022. "Autonomous vehicle solutions and their digital servitization business models," Technological Forecasting and Social Change, Elsevier, vol. 185(C).
    18. Münch, Christopher & Marx, Emanuel & Benz, Lukas & Hartmann, Evi & Matzner, Martin, 2022. "Capabilities of digital servitization: Evidence from the socio-technical systems theory," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    19. Sjödin, David & Parida, Vinit & Palmié, Maximilian & Wincent, Joakim, 2021. "How AI capabilities enable business model innovation: Scaling AI through co-evolutionary processes and feedback loops," Journal of Business Research, Elsevier, vol. 134(C), pages 574-587.
    20. Chirumalla, Koteshwar & Leoni, Luna & Oghazi, Pejvak, 2023. "Moving from servitization to digital servitization: Identifying the required dynamic capabilities and related microfoundations to facilitate the transition," Journal of Business Research, Elsevier, vol. 158(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:112:y:2020:i:c:p:478-491. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.