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Article
Publication date: 3 April 2017

Tiina Kanninen, Esko Penttinen, Markku Tinnilä and Kari Kaario

The purpose of this paper is to examine what kinds of capabilities are required by process industry companies as they move toward servitization. The authors proceed in two steps…

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Abstract

Purpose

The purpose of this paper is to examine what kinds of capabilities are required by process industry companies as they move toward servitization. The authors proceed in two steps. First, the authors explore the capabilities needed in servitization with a qualitative multiple case study. Second, the authors link the identified capabilities to the servitization steps that were derived from prior literature.

Design/methodology/approach

Based on earlier servitization literature, the authors build a five-step servitization model for industrial companies. Then, drawing on the empirical study consisting of three focus group sessions with three case companies and 20 interviews in 14 case companies, the authors identify 14 servitization capabilities and link them to the servitization steps.

Findings

The study reveals how dynamic capabilities are required in servitization. In contrast to operational capabilities, which are geared toward enabling firms to make a living in the present, dynamic capabilities extend or modify operational capabilities in response to market changes. Based on the empirical study, the authors were able to identify dynamic capabilities for all five steps of servitization: identification of current services and customer needs, determination of a service strategy, creation of new business models and pricing logics, improvements in capabilities, and, ultimately, management services as a separate function.

Research limitations/implications

The current study is exploratory in nature and the number of empirical observations is limited to 14 industrial companies operating in the process industry.

Practical implications

Most importantly, in servitization, companies need dynamic capabilities to transform their operating capabilities in sales and marketing as well as in quantifying and communicating the value created for customers.

Originality/value

The study is the first one to make a link between the capabilities needed and the various stages of servitization and also the first to study the specific context of process industry companies.

Details

Business Process Management Journal, vol. 23 no. 2
Type: Research Article
ISSN: 1463-7154

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Book part
Publication date: 24 July 2024

Christopher J. Smith, Petri Virtanen, Aapo Hiilamo and Tiina Ristikari

Why is Finland failing to adequately address the issue of child poverty? Approximately 150,000 children are currently “at risk of poverty.” As data on at-risk-of-poverty (AROP…

Abstract

Why is Finland failing to adequately address the issue of child poverty? Approximately 150,000 children are currently “at risk of poverty.” As data on at-risk-of-poverty (AROP) and financial assistance over a 30-year period illustrates, numbers, in percentage terms, remain fairly constant despite continuing “political” recognition of the problem. Child poverty thus seemingly presents as a classic “wicked problem” particularly in the emerging social space that constitutes UN Sustainable Development Goal implementation. In line with “wickedness theory,” the chapter discusses the various technical and value-based possibilities for persistent policy failure around child poverty which sees increasing polarization between the majority and some increasingly marginalized social groups such as single parent and immigrant families. While definitive explanations for the persistence of child poverty in a Nordic welfare state such as Finland remain elusive, the Finnish experience suggests that interorganizational conflicts, siloed-thinking, and outdated implementation in relation to the benefits system represent key hindrances to better policymaking and thus to more equitable policy outcomes.

Details

Policy Capacity, Design and the Sustainable Development Goals
Type: Book
ISBN: 978-1-80455-687-0

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