Introducing advanced services in the market:an ego-network perspective on the value capture process of small and medium-sized enterprises (SMEs)

Abstract

This study focuses on achieving a comprehensive understanding of the success of manufacturers exploiting the potential of advanced services in the market. Three main gaps are identified in the literature, referring to the early stages of advanced services provision, the value capture process and the extended embedded context. Accordingly, the proposed research questions address the dynamic, subjective and collaborative nature of value in advanced services: RQ1. Which forms of value emerge for a manufacturer introducing advanced services in the market? RQ2. Which collaborative actions does the manufacturer take in order to capture these forms of value? RQ3. How does the nature of the relationships with its partners impact the manufacturer’s development of these actions?The exploratory purpose and social constructivism paradigm guide the method. The research follows a cross-sectional multiple-case study strategy. The ego-network perspective sets the boundaries of the phenomenon and guides the data collection process. Data is collected from 12 cases and 18 informants and analysed following an interpretive and iterative process. Insights from the analysis are presented in the form of within-case narrative stories and cross-case findings.Findings identify strategic, knowledge and economic value outcomes emerging at the introduction stage of advanced services provision. To capture them, manufacturers develop production, problem-solving and platform activities in collaboration with partners. Partners’ roles and ego-network characteristics determine their impact on the manufacturer’s value capture process.The study advances research in the multi-actor context through the ego-network perspective; it contributes to the literature on manufacturers’ progression identifying the primary role of Big Data; it bridges the strategic management field and SNA to explain manufacturers’ innovation; and it expands the understanding of manufacturers’ competitiveness based on new ventures’ network quality. This study also contributes with practical information to support manufacturers’ decision-making as well as to evoke the institutional legitimation of advanced services.