Dynamic Service Innovation Capabilities for Servitisation - A Literature Review and Development of a Process Model

Industrial manufacturers increasingly aim to differentiate their portfolio by offering services. In order to manage the development process of new industrial services, certain intangible requirements are necessary. Previous studies, however, do not specify how the participating actors can best fulfil these requirements. Insights in this field are essential for understanding how industrial manufacturers can establish a successful service business. We close this gap by matching the determined requirements with dynamic service innovation capabilities (DSICs) that we identify by performing a literature review. Following a conceptual deductive approach, we create a bilateral new service development (NSD) process that considers the innovating firm’s and its client’s perspectives. Our theoretical implications encompass broadening the servitisation literature by creating a capabilities-based process framework for industrial manufacturers. Our recommendations for practice include adhering to a new process for industrial NSD that is based on the capabilities necessary for the development, offer, and constant delivery of industrial services.