Servitization as business model contestation: A practice approach

Teea Palo, Maria Åkesson, Nina Löfberg

Research output: Contribution to journalArticlepeer-review

Abstract

In principle, organizations know how to do servitization, but in practice, many struggle to change their business models to include service offerings. To understand this struggle, this paper examines servitization in a large multinational manufacturer within the pulp and paper industry. Utilizing practice theory, the study explicates the servitization process as a contestation of a company's parallel business models — one existing and dominant; one emerging. As business models materialize in organizational practices, and therefore have the potential to frame and organize servitization efforts, the models give rise to contestations in the practices performed by actors in the organization and the ecosystem. The elements of such contestations provide a better understanding of the ways in which practices may be disrupted to support servitization. Contestations can thus be creative instead of problematic. As a result, this paper extends the conceptualization of servitization as a bottom-up, emergent and iterative process of business model contestation.
Original languageEnglish
Pages (from-to)486-496
JournalJournal of Business Research
Volume104
Early online date1 Nov 2018
DOIs
Publication statusPublished - 30 Nov 2019

Keywords

  • servitization
  • business model
  • practice
  • change
  • contestation

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