Theoretical deduction of value potentials of service-based business models

Responding to the shift towards a service society an increasing number of manufacturing industries recognize the competitive advantage of the service business and integrate advanced services into their traditional product dominated portfolio. Despite the valuable research done in the field of advanced services in manufacturing industry, a stable and consistent theory offering explanations why this strategy of service orientation should lead to economical, ecological and also social benefits is lacking. This paper presents an approach for identifying what kind of value based on theoretical arguments could be generated through service-oriented business models.