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From Service for Free to Service for Fee: Business model innovation in manufacturing firms
Karlstad University, Faculty of Economic Sciences, Communication and IT, Service Research Center. Karlstad University, Faculty of Economic Sciences, Communication and IT, Department of Business Administration.
Karlstad University, Faculty of Economic Sciences, Communication and IT, Department of Business Administration. Karlstad University, Faculty of Economic Sciences, Communication and IT, Service Research Center.
2013 (English)In: Journal of Service Management, ISSN 1757-5818, E-ISSN 1757-5826, Vol. 24, no 5, 520-533 p.Article in journal (Refereed) Published
Abstract [en]

Purpose – The purpose of the present research is to identify how business model innovation can be used to make the transition from service for free to service for fee. In particular, the focus is on identifying, describing and analysing alternative transition strategies, degree and type of innovation, and how building blocks in the business model change.

Design/methodology/approach – A multiple case study of six manufacturing firms was performed. Data were collected through interviews with CEOs, service managers and sales managers. In addition, two workshops were performed with the participating firms.

Findings – The present research identified eight strategies for transitioning from service for free to service for fee. These strategies represent change in the business model, incremental business model innovation and radical business model innovation. It is suggested to change the content and structure to perform incremental business model innovation and change the governance to perform radical business model innovation.

Originality/value – In most models for service infusion, the change of business model is seen as a necessary step and focus is placed on that a change of business model is needed. The present study elaborates on what approaches manufacturing firms use to make the change from one business model to another.

Place, publisher, year, edition, pages
2013. Vol. 24, no 5, 520-533 p.
Keyword [en]
Business model, Manufacturing firms, Multiple case study, Service innovation
National Category
Business Administration
Research subject
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-29319DOI: 10.1108/JOSM-04-2013-0103ISI: 000325235200004OAI: oai:DiVA.org:kau-29319DiVA: diva2:653947
Available from: 2013-10-07 Created: 2013-10-07 Last updated: 2016-08-10Bibliographically approved

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Witell, LarsLöfgren, Martin
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