The impact of servitization on business model innovation : understanding the transition towards a service-based business model

Abstract

This master thesis is an empirical study on how servitization affects the degree of business model innovation. The analysis is based on 284 responses from Chief Executive Officers in a variety of Norwegian industries. Previous literature suggests that servitization is associated with high degrees of business model innovation. Nevertheless, few researchers have studied this relationship, and our findings indicate that servitization surprisingly is associated with low degrees of business model innovation. Furthermore, we find that uncertain competitive environments and high degrees of external pressure accelerate the extent to which servitization results in business model innovation. In contrast, rigid managerial practices hinder the innovation of business models. These findings produce interesting and relevant implications for managers and decision makers, in which we suggest that working towards increased flexibility and adopting a business model perspective on servitization may facilitate the process of innovating the business model.