Skip to main content

Advertisement

Log in

Understanding the influence of digitalization on service firm business model design: a qualitative-empirical analysis

  • Original Paper
  • Published:
Review of Managerial Science Aims and scope Submit manuscript

Abstract

This paper focuses on an analysis of how service firm digitalization is reflected in the business model design. We make use of an eclectic research approach combing insights from digitalization research, service firm research, and business model research. Against the background of nine in-depth case studies including 41 interviews and covering a 3-year-period of time (2014–2017), we identify four digital service firm business model archetypes. Our findings show that implementing digital technologies and digitalizing business activities helps service firms to overcome traditional service-related business constraints. Digital technologies help to speed up service processes and to disentangle the still very often assumed linkage between human activities and services. Our data further reveals that service firms are enabled to enhance service availability and service efficiency in this realm. Interestingly, we observe no effect of ongoing digitalization on the firms’ service-related knowledge base. Changes in the knowledge base only relate to digital knowledge.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Agarwal R, Helfat CE (2009) Strategic renewal of organizations. Organ Sci 20:281–293

    Article  Google Scholar 

  • Amit R, Zott C (2001) Value creation in e-business. Strateg Manag J 22:493–520

    Article  Google Scholar 

  • Ashton K (2009) The ‘internet of things’ thing. RFID J 22:97–114

    Google Scholar 

  • Atzori L, Iera A, Morabito G (2010) The internet of things: a survey. Comput Netw 54:2787–2805

    Article  Google Scholar 

  • Bansal P, Corley K (2012) Publishing in AMJ—Part 7: what’s different about qualitative research? Acad Manage J 55:509–513

    Article  Google Scholar 

  • Barkema HG, Baum JAC, Mannix EA (2002) Management challenges in a new time. Acad Manage J 45:916–930

    Google Scholar 

  • Biggiero L (2006) Industrial and knowledge relocation strategies under the challenges of globalization and digitalization: the move of small and medium enterprises among territorial systems. Entrep Reg Dev 18:443–471

    Article  Google Scholar 

  • Bluhm DJ, Harman W, Lee TW, Mitchell TR (2011) Qualitative research in management: a decade of progress. J Manag Stud 48:1866–1891

    Article  Google Scholar 

  • Bruhn M, Georgi D (2006) Services marketing. Pearson Education, Harlow

    Google Scholar 

  • Buera FJ, Kaboski JP (2012) The rise of the service economy. Am Econ Rev 102:2540–2569

    Article  Google Scholar 

  • Casadesus-Masanell R, Ricart JE (2010) From strategy to business models and onto tactics. Long Range Plann 43:195–215

    Article  Google Scholar 

  • Casadesus-Masanell R, Zhu F (2013) Business model innovation and competitive imitation: the case of sponsor-based business models. Strateg Manag J 34:464–482

    Article  Google Scholar 

  • Chesbrough HW (2007) Business model innovation: it’s not just about technology anymore. Strategy Leadersh 35:12–17

    Article  Google Scholar 

  • Chesbrough H, Rosenbloom RS (2002) The role of the business model in capturing value from innovation: evidence from Xerox Corporation’s technology spin-off companies. Ind Corp Change 11:529–555

    Article  Google Scholar 

  • Clausen JA (1998) Life reviews and life stories. In: Giele JZ, Elder GH (eds) Methods of life course research: qualitative and quantitative approaches. Sage, Thousand Oaks, pp 189–212

    Chapter  Google Scholar 

  • DaSilva CM, Trkman P (2014) Business model: what it is and what it is not. Long Range Plan 47:379–389

    Article  Google Scholar 

  • Daugherty P, Banerjee P, Negm W, Alter EA (2015) Driving unconventional growth through the industrial internet of things. Accenture

  • Delmar F, Shane S (2003) Does business planning facilitate the development of new ventures? Strateg Manag J 24:1165–1185

    Article  Google Scholar 

  • Demil B, Lecocq X, Ricart JE, Zott C (2015) Introduction to the SEJ special issue on business models: business models within the domain of strategic entrepreneurship. Strateg Entrep J 9:1–11

    Article  Google Scholar 

  • Denzin NK, Lincoln YS (2005) The SAGE handbook of qualitative research, 3rd edn. Sage Publications, Thousand Oaks

    Google Scholar 

  • Donald M, Carol C (2003) The ultimate competitive advantage of continuing business model innovation. J Bus Strategy 24:15–21

    Article  Google Scholar 

  • Doz YL, Kosonen M (2010) Embedding strategic agility: a leadership agenda for accelerating business model renewal. Long Range Plan 43:370–382

    Article  Google Scholar 

  • Eisenhardt KM (1989) Building theories from case study research. Acad Manage Rev 14:532–550

    Article  Google Scholar 

  • Eisenhardt KM, Graebner ME (2007) Theory building from cases: opportunities and challenges. Acad Manage J 50:25–32

    Article  Google Scholar 

  • Feagin JR, Orum AM, Sjoberg G (1991) A case for the case study. UNC Press Books, Chapel Hill

    Google Scholar 

  • Frambach RT, Wels-Lips I, Gündlach A (1997) Proactive product service strategies: an application in the European health market. Ind Mark Manag 26:341–352

    Article  Google Scholar 

  • Gartner WB, Birley S (2002) Introduction to the special issue on qualitative methods in entrepreneurship research. J Bus Ventur 17:387–395

    Article  Google Scholar 

  • Gioia DA, Corley KG, Hamilton AL (2012) Seeking qualitative rigor in inductive research: notes on the Gioia methodology. Organ Res Methods 16:15–31

    Article  Google Scholar 

  • Graebner ME, Martin JA, Roundy PT (2012) Qualitative data: cooking without a recipe. Strateg Org 10:276–284

    Article  Google Scholar 

  • Grönroos C (2006) Adopting a service logic for marketing. Mark Theor 6:317–333

    Article  Google Scholar 

  • Gummesson E (2007) Exit service marketing-enter service marketing. J Cust Behav 6:113–141

    Article  Google Scholar 

  • Loebbecke C, Picot A (2015) Reflections on societal and business model transformation arising from digitization and big data analytics: a research agenda. J Strateg Inf Syst 24:149–157

    Article  Google Scholar 

  • Mahadevan B (2000) Business models for internet based e-commerce: ananatomy. Calif Manage Rev 42:55–69

    Article  Google Scholar 

  • Manyika J, Chui M, Bisson P, Woetzel J, Dobbs R, Bughin J, Aharon D (2015) The internet of things: mapping the value beyond the hype. Mc Kinsey Global Institute, Seoul

    Google Scholar 

  • Markides C (2006) Disruptive innovation: in need of better theory*. J Prod Innov Manag 23:19–25

    Article  Google Scholar 

  • Markides C, Charitou D (2004) Competing with dual business models: a contingency approach. Acad Manage Exec 1993–2005(18):22–36

    Google Scholar 

  • McAfee A, Brynjolfsson E (2012) Big data: the management revolution. Harv Bus Rev 90:60–68

    Google Scholar 

  • McGrath RG (2010) Business models: a discovery driven approach. Long Range Plan 43:247–261

    Article  Google Scholar 

  • Miorandi D, Sicari S, De Pellegrini F, Chlamtac I (2012) Internet of things: vision, applications and research challenges. Ad Hoc Netw 10:1497–1516

    Article  Google Scholar 

  • Negroponte N (1995) Being digital. Vintage Books, London

    Google Scholar 

  • Newell S, Marabelli M (2015) Strategic opportunities (and challenges) of algorithmic decision-making: a call for action on the long-term societal effects of ‘datification’. J Strateg Inf Syst 24:3–14

    Article  Google Scholar 

  • Niemand T, Rigtering C, Kallmünzer A, Kraus S, Matijas S (2017) Entrepreneurial orientation in the financial service industry: a contigengcy approach. In: 25th European conference on information systems (ECIS), Guimarães, Portugal, June 5–10, 2017, pp 1081–1096

  • Osterwalder A, Pigneur Y (2010) Business model generation: a handbook for visionaries, game changers, and challengers. Wiley, Indianapolis

    Google Scholar 

  • Parasuraman A, Zeithaml VA, Berry LL (1985) Conceptual model of service quality and its implications for future research. J Mark 49:41–50

    Article  Google Scholar 

  • Parviainen P, Tihinen M, Kääriäinen J, Teppola S (2017) Tackling the digitalization challenge: how to benefit from digitalization in practice. Int J Inf Syst Proj Manag 5:63–77

    Google Scholar 

  • Patton MQ (2002) Qualitative research and evaluation methods, 3rd edn. Sage Publications Ltd, Thousand Oaks

    Google Scholar 

  • Rai A, Sambamurthy V (2006) Editorial notes: the growth of interest in services management: opportunities for information systems scholars. Inf Syst Res 17:327–331

    Article  Google Scholar 

  • Richter C, Kraus S, Syrjä P (2015) The shareconomy as a precursor for digital entrepreneurship business models. Int J Entrep Small Bus 25:18–35

    Article  Google Scholar 

  • Richter C, Kraus S, Brem A, Durst S, Giselbrecht C (2017) Digital entrepreneurship: innovative business models for the sharing economy. Creat Innov Manag 26:300–310

    Article  Google Scholar 

  • Roland R (1998) What is the domain of service research? J Serv Res US 1:107

    Article  Google Scholar 

  • Sabine M (2010) Characteristics of services—a new approach uncovers their value. J Serv Mark 24:359–368

    Article  Google Scholar 

  • Shankar V, Berry L, Dotzel T (2009) A practical guide to combining products and services. Harv Bus Rev 87:94–99

    Google Scholar 

  • Sosna M, Trevinyo-Rodríguez RN, Velamuri SR (2010) Business model innovation through trial-and-error learning: the Naturhouse case. Long Range Plan 43:383–407

    Article  Google Scholar 

  • Spieth P, Schneckenberg D, Ricart JE (2014) Business model innovation—state of the art and future challenges for the field. R&D Manag 44:237–247

    Article  Google Scholar 

  • Strauss A, Corbin J (1998) Basics of qualitative research: techniques and procedures for developing grounded theory, 2nd edn. Sage Publications, Thousand Oaks

    Google Scholar 

  • Teece DJ (2010) Business models, business strategy and innovation. Long Range Plan 43:172–194

    Article  Google Scholar 

  • Timmers P (1998) Business models for electronic markets. Electron Mark 8:3–8

    Article  Google Scholar 

  • Ulaga W, Reinartz WJ (2011) Hybrid offerings: how manufacturing firms combine goods and services successfully. J Mark 75:5–23

    Article  Google Scholar 

  • Vargo SL, Lusch RF (2004) The four service marketing myths: remnants of a goods-based, manufacturing model. J Serv Res US 6:324–335

    Article  Google Scholar 

  • WEF (2015) Industrial internet of things: unleashing the potential of connected products and services. World Economic Forum Industry Agenda. http://www3.weforum.org/docs/WEFUSA_IndustrialInternet_Report2015.pdf. Accessed 02 March 2018

  • Yin RK (2009) Case study research: design and methods. Sage Publications, Thousand Oaks

    Google Scholar 

  • Yin RK (2012) Applications of case study research, 5th edn. Sage Publications, Thousand Oaks

    Google Scholar 

  • Zott C, Amit R (2010) Business model design: an activity system perspective. Long Range Plan 43:216–226

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Sven M. Laudien.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Laudien, S.M., Pesch, R. Understanding the influence of digitalization on service firm business model design: a qualitative-empirical analysis. Rev Manag Sci 13, 575–587 (2019). https://doi.org/10.1007/s11846-018-0320-1

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11846-018-0320-1

Keywords

JEL Classification

Navigation