Maximilian Michael Klein, Sebastian Simon Biehl and Thomas Friedli
The purpose of this paper is to identify and investigate non-technical barriers for smart services in the capital goods industry.
Abstract
Purpose
The purpose of this paper is to identify and investigate non-technical barriers for smart services in the capital goods industry.
Design/methodology/approach
A multiple methodology approach is adopted. First, qualitative workshops and interviews were conducted with 14 experts from five companies. The findings generated subsequently provided a basis for a large-scale quantitative survey of manufacturing company service representatives in the capital goods industry, the data from which were analyzed using explorative factor analysis.
Findings
In total, 25 items that represent barriers to smart service businesses were identified, using qualitative research. Large-scale quantitative research revealed 24 items structured into four factors. Additionally, the respondents’ assessment of the individual barriers’ impact on their smart service businesses is presented.
Research limitations/implications
The study focuses on manufacturing companies in the capital goods industry, mainly, in the European countries. Caution should be exercised in seeking to generalize the results to other industries. The findings should be confirmed with subsequent confirmatory analyses using additional data.
Practical implications
The authors’ findings provide a comprehensive list and classification of barriers, as well as an assessment of their severity, serving as a practical guideline for managers.
Originality/value
This paper explores the barriers to smart services from a provider’s perspective. Its holistic approach and use of large-scale quantitative data qualify it as one of the first studies of this kind.
Details
Keywords
Christoph Tienken, Moritz Classen and Thomas Friedli
Digital solutions (DS) that build on recurring revenue models (RRMs) offer new opportunities to continuously create and capture superior value. However, many firms fail to engage…
Abstract
Purpose
Digital solutions (DS) that build on recurring revenue models (RRMs) offer new opportunities to continuously create and capture superior value. However, many firms fail to engage their sales force in digital solution selling (DS selling), leading to agency problems that receive little attention in literature. This study aims to examine the drivers of agency problems that surface in the transition toward DS selling and the sales control systems that resolve these problems.
Design/methodology/approach
The authors conducted a qualitative, inductive study. Data were collected from interviews with 72 marketing and sales managers representing 53 industrial firms transitioning toward DS selling.
Findings
DS selling is subject to adverse selection and moral hazard caused by motivation-related, opportunity-related and ability-related drivers. Input, capability, activity and outcome controls – detailed in this study – can resolve these agency problems.
Research limitations/implications
The limitations of this study’s methodology and scope suggest several directions for future research. Methodology-wise, the authors mainly relied on cross-sectional interview data from informants in Central and Northern Europe. Scope-wise, more research is needed on the capabilities, processes and steering instruments supporting DS sales. Finally, only now do the authors begin to understand which compensation plans motivate DS selling.
Practical implications
The controls identified in this study help managers to steer their sales force in DS sales.
Originality/value
To the best of the authors’ knowledge, this study is the first to investigate DS sales control systems. Thereby, the authors enhance prior understandings of solution selling, agency problems and sales control systems.
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Keywords
Cheng Gong and Vincent Ribiere
The purpose of this paper is to clarify the conceptual confusion in the extant literature about organizational agility and explore its role in different relationships in the…
Abstract
Purpose
The purpose of this paper is to clarify the conceptual confusion in the extant literature about organizational agility and explore its role in different relationships in the context of digital transformation.
Design/methodology/approach
An integrative review of the relevant literature on agility was conducted. The literature on organizational agility and other variables in recent quantitative research was also examined to explore its role in different relationships.
Findings
Organizational agility is the ability to quickly respond and proactively embrace unanticipated changes in dynamic environments through effective resource reconfiguration and rapid decision-making. The role of organizational agility in achieving digital transformation has not been addressed from a holistic conceptual perspective. This paper addresses that gap and proposes that organizational agility is the underlying mechanism for an organization to fully use and engage its workforce, operation and network in the process of digital transformation.
Research limitations/implications
This research is an integrative review of the existing literature on the concept of agility and its relationships. The next phase of research needed for theory building will be the operationalization of constructs.
Practical implications
Organizations should strive to strategically develop both the reactivity and proactivity sides of organizational agility in achieving digital transformation that involves fundamental changes at different levels of the organization.
Originality
This paper explores the role of organizational agility in digital transformation through an integrative review of the relevant literature.