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  4. Organizational capabilities for pay-per-use services in product-oriented companies
 
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2017
Journal Article
Title

Organizational capabilities for pay-per-use services in product-oriented companies

Abstract
Pay-per-use services are an interesting phenomenon, both empirically and theoretically. Despite the alleged benefits, companies still struggle to succeed with pay-per-use services. Theoretically, it is common sense that existing service capabilities cannot easily be converted into organizational capabilities for pay-per-use services. Based on multiple case studies, the present article narrows down the existing empirical and theoretical gaps through an inductive research approach. Our findings make the following contributions to the field of services in product-oriented companies and to the servitization literature. We describe the organizational capabilities necessary for pay-per-use services (e.g., financing such services, aligning costs with equipment usage, and collaborating with custom ers). We reveal that companies should convert these capabilities into three core competencies (strategizing pay-per-use services, utilizing technologies for pay-per-use services, and de-risking pay-per-use services), in order to achieve competitive advantages.
Author(s)
Gebauer, Heiko  
Saul, Caroline Jennings
Haldimann, Mirella
Gustafsson, Anders
Journal
International Journal of Production Economics  
DOI
10.1016/j.ijpe.2016.12.007
Language
English
Fraunhofer-Zentrum für Internationales Management und Wissensökonomie IMW  
Keyword(s)
  • pay-per-use service

  • capability

  • business model innovation

  • financing

  • knowledge-based view of the firm

  • product usage

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