How do innovation intermediaries’ business models cope with their need to develop new digital services?

Abstract

This study explores relationships among various aspects of Innovation Intermediaries' (IIs) business models and their intention to provide digital and data-enabled services to their members/customers. Using mixed research methods with data collected from Danish IIs, we find that IIs' current use level of digital resources has a positive relationship with their intention of offering digital and data services, while the level of existing digital services demotivates or prevents IIs from providing them. We also find that the breadth of IIs' customers and partnerships is not directly associated with their intention to offer more digital services in the future. These findings are enriched with nuanced insights from a follow-up qualitative study showing that strategic partners do not provide the required support for intermediaries to develop and provide digital offerings. Instead, IIs rely on system integrators to equip themselves with the needed digital capacity to support their members/customers. The study contributes to the understanding of IIs’ business models linked to their service catalogue, particularly on digital offerings and their function as digitalization champions in a shifting paradigm of industrial digital transformation. Furthermore, it adds knowledge about open innovation by researching service offerings and relevant resources and capabilities of IIs as network organizations.