IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v199y2025ics014829632500390x.html

B2B manufacturers in pursuit of Product-as-a-Service: Motivations, barriers, and approaches

Author

Listed:
  • Hedvall, K.
  • Benedettini, O.
  • Blümel, J.H.
  • Arsenovic, J.
  • Kristensson, P.

Abstract

•Manufacturers introduce PaaS as a response to market dynamics and competition.•Manufacturers and customers explore PaaS jointly, iteratively, and interactively.•Design of offerings involves customers in a joint learning-process.•Pricing and business models are developed stepwise together with customers.•Financing of PaaS is a challenge for manufacturers and requires partners.

Suggested Citation

  • Hedvall, K. & Benedettini, O. & Blümel, J.H. & Arsenovic, J. & Kristensson, P., 2025. "B2B manufacturers in pursuit of Product-as-a-Service: Motivations, barriers, and approaches," Journal of Business Research, Elsevier, vol. 199(C).
    • Handle: RePEc:eee:jbrese:v:199:y:2025:i:c:s014829632500390x
    DOI: 10.1016/j.jbusres.2025.115567
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S014829632500390X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2025.115567?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Charlotta Windahl & Pierre Andersson & Christian Berggren & Camilla Nehler, 2004. "Manufacturing firms and integrated solutions: characteristics and implications," European Journal of Innovation Management, Emerald Group Publishing Limited, vol. 7(3), pages 218-228, September.
    2. Yinshi (Agnes) Gao & Saurabh Bansal & V. Daniel R. Guide, 2023. "OEM‐servicizing with a multiusecycle product: Model analysis and insights," Production and Operations Management, Production and Operations Management Society, vol. 32(12), pages 4021-4048, December.
    3. Vishal V. Agrawal & Ioannis Bellos, 2017. "The Potential of Servicizing as a Green Business Model," Management Science, INFORMS, vol. 63(5), pages 1545-1562, May.
    4. Visnjic, Ivanka & Neely, Andy & Jovanovic, Marin, 2018. "The path to outcome delivery: Interplay of service market strategy and open business models," Technovation, Elsevier, vol. 72, pages 46-59.
    5. Charles J. Whalen & Katherine A. Whalen, 2020. "Circular Economy Business Models: A Critical Examination," Journal of Economic Issues, Taylor & Francis Journals, vol. 54(3), pages 628-643, July.
    6. Grubic, Tonci & Jennions, Ian, 2018. "Do outcome-based contracts exist? The investigation of power-by-the-hour and similar result-oriented cases," International Journal of Production Economics, Elsevier, vol. 206(C), pages 209-219.
    7. Visnjic, Ivanka & Jovanovic, Marin & Neely, Andy & Engwall, Mats, 2017. "What brings the value to outcome-based contract providers? Value drivers in outcome business models," International Journal of Production Economics, Elsevier, vol. 192(C), pages 169-181.
    8. Tabares, Sabrina & Parida, Vinit & Visnjic, Ivanka, 2023. "Revenue models for digital services in the railway industry: A framework for choosing the right revenue model," Journal of Business Research, Elsevier, vol. 165(C).
    9. Wolfgang Ulaga & Werner Reinartz, 2011. "Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully," Post-Print hal-00642039, HAL.
    10. Stefan Worm & Sundar G. Bharadwaj & Wolfgang Ulaga & Werner J. Reinartz, 2017. "When and why do customer solutions pay off in business markets?," Journal of the Academy of Marketing Science, Springer, vol. 45(4), pages 490-512, July.
    11. Vandermerwe, Sandra & Erixon, David, 2023. "Servitization of business updated: Now, new, next," European Management Journal, Elsevier, vol. 41(4), pages 479-487.
    12. Jingchen Hou & Andy Neely, 2018. "Investigating risks of outcome-based service contracts from a provider’s perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 56(6), pages 2103-2115, March.
    13. Karatzas, Antonios & Daskalakis, George & Bastl, Marko & Johnson, Mark, 2022. "Risky business? Shareholder value effects of service provision," International Journal of Production Economics, Elsevier, vol. 244(C).
    14. Christian Homburg & Danijel Jozić & Christina Kuehnl, 2017. "Customer experience management: toward implementing an evolving marketing concept," Journal of the Academy of Marketing Science, Springer, vol. 45(3), pages 377-401, May.
    15. Michael A. Cusumano & Steven J. Kahl & Fernando F. Suarez, 2015. "Services, industry evolution, and the competitive strategies of product firms," Strategic Management Journal, Wiley Blackwell, vol. 36(4), pages 559-575, April.
    16. Gebauer, Heiko & Saul, Caroline Jennings & Haldimann, Mirella & Gustafsson, Anders, 2017. "Organizational capabilities for pay-per-use services in product-oriented companies," International Journal of Production Economics, Elsevier, vol. 192(C), pages 157-168.
    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. 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.
    2. Marko Kohtamäki & Stephan C. Henneberg & Veronica Martinez & Koji Kimita & Heiko Gebauer, 2019. "A Configurational Approach to Servitization: Review and Research Directions," Service Science, INFORMS, vol. 11(3), pages 213-240, October.
    3. 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.
    4. Grubic, Tonci & Jennions, Ian, 2018. "Do outcome-based contracts exist? The investigation of power-by-the-hour and similar result-oriented cases," International Journal of Production Economics, Elsevier, vol. 206(C), pages 209-219.
    5. Kwak, Kiho & Kim, Namil & Lee, Haneul, 2026. "Unpacking digital servitization and firm performance in B2B manufacturing: Evidence from U.S. firms," Technovation, Elsevier, vol. 150(C).
    6. Korkeamäki, Lauri & Kohtamäki, Marko & Parida, Vinit, 2021. "Worth the risk? The profit impact of outcome-based service offerings for manufacturing firms," Journal of Business Research, Elsevier, vol. 131(C), pages 92-102.
    7. 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).
    8. 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).
    9. Abbas Tafti & Marcus Sandberg & Matts Andersson, 2024. "Exploring Alternative Revenue Models for Construction Consulting Firms in the Digital Era," Sustainability, MDPI, vol. 16(21), pages 1-29, October.
    10. 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.
    11. Sato, Kimitoshi & Nakashima, Kenichi, 2020. "Optimal pricing problem for a pay-per-use system based on the Internet of Things with intertemporal demand," International Journal of Production Economics, Elsevier, vol. 221(C).
    12. Li, Ai Qiang & Kumar, Maneesh & Claes, Björn & Found, Pauline, 2020. "The state-of-the-art of the theory on Product-Service Systems," International Journal of Production Economics, Elsevier, vol. 222(C).
    13. Maximilian Bock & Martin Wiener & Carol Saunders, 2023. "Non-ownership business models in the manufacturing industry: Uncertainty-exploiting versus uncertainty-mitigating designs and the role of context factors," Electronic Markets, Springer;IIM University of St. Gallen, vol. 33(1), pages 1-18, December.
    14. Wei, Zelong & Huang, Wengao & Wang, Yanping & Sun, Lulu, 2022. "When does servitization promote product innovation? The moderating roles of product modularization and organization formalization," Technovation, Elsevier, vol. 117(C).
    15. Kohtamäki, Marko & Einola, Suvi & Rabetino, Rodrigo, 2020. "Exploring servitization through the paradox lens: Coping practices in servitization," International Journal of Production Economics, Elsevier, vol. 226(C).
    16. Wang, Yanping & Gao, Jie & Wei, Zelong, 2022. "The double-edged sword of servitization in radical product innovation: The role of latent needs identification," Technovation, Elsevier, vol. 118(C).
    17. 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).
    18. Ashkan Faramarzi & Stefan Worm & Wolfgang Ulaga, 2024. "Service strategy’s effect on firm performance: A meta-analysis of the servitization literature," Journal of the Academy of Marketing Science, Springer, vol. 52(4), pages 1018-1044, July.
    19. Lerch, Christian M. & Jäger, Angela & Bikfalvi, Andrea & Moll, Cornelius, 2026. "Unpacking digital servitization: How its facets drive platformization and Industry 4.0," Technovation, Elsevier, vol. 150(C).
    20. Selvaprabu Nadarajah, 2023. "Corporate Renewable Procurement Analytics," Foundations and Trends(R) in Technology, Information and Operations Management, now publishers, vol. 16(3-4), pages 250-266, July.

    More about this item

    Statistics

    Access and download statistics

    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:199:y:2025:i:c:s014829632500390x. 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.