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How business model innovation overcomes barriers during manufacturers’ servitization transformation: a case study of two top piano manufacturers in China

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  • Qiang Xu
  • Jinghui Yu
  • Jianxin Xu
  • Guangxi Zhang
  • Canying Liang

Abstract

Servitization is important for manufacturers’ strategic transition, yet applying servitization has significant barriers. Business model innovation is regarded as a systematic solution of overcoming the barriers. However, it has been insufficiently studied especially in emerging economies. Therefore, we conducted a multi-case study of two leading piano manufacturers engaging in services in China, and explore the process of business model innovation for their servitization. This study finds that, with the facilitation of dynamic capabilities, manufacturers address the barriers through business model innovation in three elements of content, structure and governance, and finally form a new business model with ambidexterity, in which efficiency-centred theme and novelty-centred theme can coexist, interact, and dynamically match with emerging economies’ context. This study provides new insights on how manufacturers in emerging economies conduct business model innovation for realizing their servitization transformation.

Suggested Citation

  • Qiang Xu & Jinghui Yu & Jianxin Xu & Guangxi Zhang & Canying Liang, 2021. "How business model innovation overcomes barriers during manufacturers’ servitization transformation: a case study of two top piano manufacturers in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 27(3), pages 378-404, May.
    • Handle: RePEc:taf:apbizr:v:27:y:2021:i:3:p:378-404
    DOI: 10.1080/13602381.2021.1894722
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    Cited by:

    1. Diogo Pombo & Mário Franco, 2023. "A qualitative investigation of infusing products with service via strategic alliances among SMEs: a case of servitization," Service Business, Springer;Pan-Pacific Business Association, vol. 17(2), pages 529-555, June.
    2. 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).
    3. José Oliveira & António Azevedo & João J. Ferreira & Sofia Gomes & João M. Lopes, 2021. "An insight on B2B Firms in the Age of Digitalization and Paperless Processes," Sustainability, MDPI, vol. 13(21), pages 1-21, October.

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