Title: Equipment as a service and the role of technology: the transition towards usage-based business models

Authors: Isabella Stojkovski; Ann-Kristin Achleitner; Thomas Lange; Svenja Jarchow

Addresses: Technical University Munich (TUM), Center for Entrepreneurial and Financial Studies (CEFS), Arcisstrasse 21, 80333, Munich, Germany ' Technical University Munich (TUM), Center for Entrepreneurial and Financial Studies (CEFS), Arcisstrasse 21, 80333, Munich, Germany ' acatech – National Academy of Science and Engineering (until September 2020), Karolinenplatz 4, 80333, Munich, Germany ' Technical University Munich (TUM), Center for Entrepreneurial and Financial Studies (CEFS), Arcisstrasse 21, 80333, Munich, Germany

Abstract: Technological advances open opportunities for new ways of profit generation or entirely new business models (BMs). 'Equipment as a service' (EaaS) is perhaps one of the most drastic examples of technology-enabled BM innovation (BMI) in the field today. To gather knowledge on this phenomenon, we choose an exploratory, qualitative research design and collect data through 26 semi-structured interviews with experts belonging to four relevant stakeholder groups. Drawing on BMI theory, we clarify: why firms move towards usage-based BMs, what the main usage-based BM archetypes are, and how shifting to these archetypes innovates the BM. We discuss technology as a key driver of usage-based BMI. Our analysis further identifies four usage-based BM archetypes: Leasing Plus, Flexible Contracting, Renting/Sharing, and Performance Contracting. While this study focuses mainly on BMI in established firms, the results are also relevant to younger firms and start-ups that are yet to determine their BM.

Keywords: EaaS; equipment as a service; technology-enabled business model innovation; usage-based business models; business model canvas; business model innovation; company life cycle; pay-per-use.

DOI: 10.1504/IJEV.2022.127454

International Journal of Entrepreneurial Venturing, 2022 Vol.14 No.4/5, pp.413 - 448

Received: 18 Jan 2021
Accepted: 13 Jan 2022
Published online: 05 Dec 2022 *

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