CUED Publications database

Only the Brave: Product Innovation, Service Business Model Innovation, and Their Impact on Performance

Visnjic, I and Wiengarten, F and Neely, A (2016) Only the Brave: Product Innovation, Service Business Model Innovation, and Their Impact on Performance. Journal of Product Innovation Management, 33. pp. 36-52. ISSN 0737-6782

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Abstract

© 2014 Product Development & Management Association. Recent empirical findings concerning the performance effects of service business model innovation (servitization) and its interplay with product innovation are mixed. Using the lenses of the demand-based view on value creation and complementarity, the performance impact of two key service business models is examined: the product-oriented model and the customer-oriented model, implemented jointly with product innovation. Results indicate that the interplay between service business model innovation and product innovation results in long-term performance benefits coupled with a degree of short-term perf ormance sacrifice. Service business model innovation in isolation from product innovation results in short-term profit gains but long-term knowledge loss and, thus, market performance decline. Our study suggests that firms need to look beyond the evidence on short-term effects in order to achieve superior performance in the long run.

Item Type: Article
Subjects: UNSPECIFIED
Divisions: Div E > Strategy and Policy
Depositing User: Cron Job
Date Deposited: 17 Jul 2017 19:32
Last Modified: 19 Sep 2017 01:33
DOI: