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

Gebauer, HeikoLinköpings universitet,Företagsekonomi,Filosofiska fakulteten,Eawag Environm Social Science Business Innovat Sustai, Switzerland; Karlstad University, Sweden,Eawag/Environmental Social Sciences/Business Innovation for Sustainable Infrastructure Services Group, Überlandstrasse 133, 8600 Dübendorf, Switzerland (author)

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 customers). 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.

Saul, Caroline JenningsEawag/Environmental Social Sciences/Business Innovation for Sustainable Infrastructure Services Group, Überlandstrasse 133, 8600 Dübendorf, Switzerland,Eawag Environm Social Science Business Innovat Sustai, Switzerland (author)
Haldimann, MirellaEawag/Environmental Social Sciences/Business Innovation for Sustainable Infrastructure Services Group, Überlandstrasse 133, 8600 Dübendorf, Switzerland,Eawag Environm Social Science Business Innovat Sustai, Switzerland (author)
Gustafsson, Anders,1964-Karlstads universitet,Centrum för tjänsteforskning (from 2013),Karlstad University, Sweden(Swepub:kau)andersgu (author)
Linköpings universitetFöretagsekonomi (creator_code:org_t)

In:International Journal of Production EconomicsAmsterdam : Elsevier192, s. 157-1680925-52731873-7579

By the author/editor: Gebauer, Heiko; Saul, Caroline J ...; Haldimann, Mirel ...; Gustafsson, Ande ...

About the subject

SOCIAL SCIENCES: SOCIAL SCIENCES; and Economics and Bu ...; and Business Adminis ...

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