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A capability perspective on service business development in small and medium-sized suppliers

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  • Gebauer, Heiko
  • Paiola, Marco
  • Edvardsson, Bo

Abstract

Existing research suggests three theoretical pathways for service business development. The first pathway involves incremental enhancement of relational value for existing supplier–buyer relationships (Alpha). The second pathway captures financial value-seeking behavior in existing and new supplier–buyer relationships (Beta). The third pathway is a radical leap toward a new value constellation downstream in the value chain (Gamma). Our main research question aims at the exploration of these three pathways with respect to small and medium-sized suppliers. The research design is based on an exploratory study and an in-depth study. The exploratory study was able to replicate these three pathways in the empirical context of small and medium-sized suppliers. The in-depth study explores and describes co-evolvement of the dynamic and operational capabilities of each pathway. The results provide testable propositions that can be used to guide future research. The paper offers a comprehensive framework that will assist researchers in the conceptualization of paths for service business development and in the operationalization of capabilities. For managers, its value lies in a description of the capabilities needed to achieve an incremental enhancement of relational value in existing supplier–buyer relationships (Alpha), financial value-seeking behavior in existing and new supplier–buyer relationships (Beta), and radical leaps into new value constellations downstream in the value chain (Gamma).

Suggested Citation

  • Gebauer, Heiko & Paiola, Marco & Edvardsson, Bo, 2012. "A capability perspective on service business development in small and medium-sized suppliers," Scandinavian Journal of Management, Elsevier, vol. 28(4), pages 321-339.
    • Handle: RePEc:eee:scaman:v:28:y:2012:i:4:p:321-339
    DOI: 10.1016/j.scaman.2012.07.001
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    References listed on IDEAS

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    2. Mar’atus Sholihah & Tatsuru Maezono & Yuya Mitake & Yoshiki Shimomura, 2019. "PSS Strategic Alignment: Linking Service Transition Strategy with PSS Business Model," Sustainability, MDPI, vol. 11(22), pages 1-30, November.
    3. Mar’atus Sholihah & Tatsuru Maezono & Yuya Mitake & Yoshiki Shimomura, 2020. "Formulating Service-Oriented Strategies for Servitization of Manufacturing Companies," Sustainability, MDPI, vol. 12(22), pages 1-30, November.
    4. Vendrell-Herrero, Ferran & Bustinza, Oscar F. & Opazo-Basaez, Marco, 2021. "Information technologies and product-service innovation: The moderating role of service R&D team structure," Journal of Business Research, Elsevier, vol. 128(C), pages 673-687.
    5. 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).
    6. Rima Zitkiene & Egle Kazlauskiene & Mindaugas Deksnys, 2015. "Dynamic Capabilities for Service Innovation," MIC 2015: Managing Sustainable Growth; Proceedings of the Joint International Conference, Portorož, Slovenia, 28–30 May 2015,, University of Primorska, Faculty of Management Koper.
    7. Matthijs Janssen & Carolina Castaldi & Alexander Alexiev, 2014. "Dynamic capabilities for service innovation: conceptualization and measurement," Working Papers 14-07, Eindhoven Center for Innovation Studies, revised Mar 2014.

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