Article: Competence development needs for micro-enterprises entering servitisation Journal: International Journal of Value Chain Management (IJVCM) 2021 Vol.12 No.1 pp.86 - 105 Abstract: <i>Servitisation</i>, as a means to drive growth, provides a great business opportunity for micro-enterprises (micros), offering the possibility of longer and more profitable customer relationships. However, such enterprises possess limited human resources and, thus, competences. Competence-related challenges must be understood in order to operate successfully in the field of servitisation. This study produces new knowledge about competence development needs. The study material consists of interviews conducted in ten Finnish subcontracting micros in the fields of forestry, agriculture, and mining. Using a multiple case approach allows for an extensive examination of the insufficiently studied phenomenon of interest - micros engaging in servitisation - utilising Tukker's (2004) product-service system. The results contribute both academically and practically by showing that micros face competence-related servitisation challenges in terms of entrepreneurship, change management, and financing. The study broadens Tukker's product-service categorisation to include product manufacturing industries that offer assembly services. Inderscience Publishers - linking academia, business and industry through research

Title: Competence development needs for micro-enterprises entering servitisation

Authors: Kyllikki Taipale-Erävala; Matti Muhos; Katariina Ala-Rämi

Addresses: University of Oulu, Kerttu Saalasti Institute, Microentrepreneurship Center of Excellence, Pajatie 5, 85500 Nivala, Finland ' University of Oulu, Kerttu Saalasti Institute, Microentrepreneurship Center of Excellence, Pajatie 5, 85500 Nivala, Finland ' University of Oulu, Kerttu Saalasti Institute, Microentrepreneurship Center of Excellence, Pajatie 5, 85500 Nivala, Finland

Abstract: Servitisation, as a means to drive growth, provides a great business opportunity for micro-enterprises (micros), offering the possibility of longer and more profitable customer relationships. However, such enterprises possess limited human resources and, thus, competences. Competence-related challenges must be understood in order to operate successfully in the field of servitisation. This study produces new knowledge about competence development needs. The study material consists of interviews conducted in ten Finnish subcontracting micros in the fields of forestry, agriculture, and mining. Using a multiple case approach allows for an extensive examination of the insufficiently studied phenomenon of interest - micros engaging in servitisation - utilising Tukker's (2004) product-service system. The results contribute both academically and practically by showing that micros face competence-related servitisation challenges in terms of entrepreneurship, change management, and financing. The study broadens Tukker's product-service categorisation to include product manufacturing industries that offer assembly services.

Keywords: micro-enterprises; competences; servitisation; case study; human resource management.

DOI: 10.1504/IJVCM.2021.112846

International Journal of Value Chain Management, 2021 Vol.12 No.1, pp.86 - 105

Received: 02 Mar 2020
Accepted: 04 Jun 2020
Published online: 07 Feb 2021 *

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Title: Competence development needs for micro-enterprises entering servitisation

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