Title: Exploring the profit model of servitising manufacturers: a resource-based perspective

Authors: Jinghua Li; Li Lin; Ting Zhang

Addresses: Research Centre for Technology Innovation and Service Management, Zhejiang Gongshang University, Hangzhou, China ' Research Centre for Technology Innovation and Service Management, Zhejiang Gongshang University, Hangzhou, China ' Research Centre for Technology Innovation and Service Management, Zhejiang Gongshang University, Hangzhou, China

Abstract: Servitisation is a kind of business model innovation, and the profit model of servitisation is the core elements of this innovation. In this paper, a comparative case study of two servitising manufacturers was carried out through analysing and cross-comparing different types of servitisation profit models for different product-service offerings within both firms. We classify servitisation profit models into four categories, and then delineating basic profit model elements and finally exploring the relationships between these elements and a firm's resources, capabilities and product-service offerings. The conclusions are that, the effective integration of resources is the prerequisite to foster key capabilities so to build relevant revenue streams, thus forming appropriate servitisation profit models. Understanding the basic logic between elements within the servitisation profit model and the relationship between resources, capabilities and business offerings is critical when the manufacturer is seeking successful transition towards servitisation.

Keywords: servitisation; profit model; resource-based view; technology resource; human resource; case study.

DOI: 10.1504/IJTPM.2020.10030768

International Journal of Technology, Policy and Management, 2020 Vol.20 No.2, pp.153 - 176

Received: 04 Sep 2018
Accepted: 20 Mar 2019

Published online: 25 Jul 2020 *

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