This chapter aims to examine and discuss the impact of ‘servitization’ and ‘service infusion’ in manufacturing companies by contextual analysis of previous studies in the development of different service logics and a case study of the wind turbine industry (use of service agreements). The aim is to answer the following questions: What is changed by the increased service infusion of a manufacturing company and in the relationship between providers and customers? Why are service offerings and service components increasingly becoming an essential part of the business model and innovation process of sophisticated products creating a solutions market with different corporate strategies? How do manufacturing companies decide to organize (‘internally’ or ‘externally’) their solution offerings depending on the impact of several factors? The factors being examined are: differences in market situation, the complexity of goods and services in the wind turbine industry, use of ‘big data’ and analytics, the institutional ‘set up’ (institutions and institutional arrangement) in the company’s service eco-systems and their customer relations.
Jørn Kjølseth Møller and Flemming Sørensen
This chapter discusses the potential of interpretivist approaches for social network analysis (SNA) to analyse service innovation processes. The benefits of interpretivist SNA approaches are discussed and it is argued that in service innovation studies they contribute an important complementary approach to more typical positivist, mathematical and computational approaches. The chapter illustrates how interpretivist-oriented SNA can identify, emphasize and explain the dynamic development of innovation networks and how this development is related to service innovation. It can identify and highlight the complex combinations of factors, including a variety of contextual factors that are important for the character and development of social networks as well as related service innovation processes.
Lars Fuglsang and Jørn Kjølseth Møller
In this chapter we develop a framework for analysing the challenge of dealing with innovation in hybrid public services. The main objective of the chapter is to analyse how hybridity can lead to innovation. Hybrid organisations are defined by the literature as organisations that combine multiple organisational identities and forms (Battilana and Lee, 2014), multiple institutional logics (Jay, 2013; Battilana and Lee, 2014) or sector principles (Billis, 2010). For the purpose of this chapter we define hybrid organisations as organisations that combine two or more institutional logics. An institutional logic is a socially constructed pattern of cultural symbols and material practices by which individuals and organisations provide meaning to their daily activity (Thornton et al., 2012, p. 2). For organisations, logics may translate into organisational ‘principles’ (Billis, 2010) or rules of the game. In this chapter we use logics and principles as almost interchangeable concepts but for us the overarching phenomenon is logics. The example of hybridity we analyse in this chapter is the growing ‘servitisation’ of public services. Servitisation we understand as a new institutional logic that leads public services to emphasise user-centric innovation approaches. Servitisation and the user-centric logic represent a move towards market sector principles and therefore an increase in sector hybridity.