Key challenges and opportunities of service innovation processes in technology supplier-service provider partnerships

Abstract

Business-to-business (B2B) technology suppliers have the potential to contribute to the service innovation process in distinct ways. Because they work with multiple service providers, they can identify emerging market trends and technological requirements. However, they face different challenges and opportunities throughout their partnership in the service innovation process. This study contributes to the B2B service innovation literature by uncovering challenges and opportunities that technology suppliers face during the service innovation process and their partnership with service providers. We identify five groups of challenges/opportunities: (1) B2B partners’ level of knowledge, (2) B2B partners’ involvement in the back/front end, (3) B2B partners’ market approach, (4) the impact of B2B partners’ organizational processes, and (5) B2B partners’ business interactions. We develop a managerially distinct service innovation process typology that identifies different roles and characteristics of B2B partners. It further identifies the extent to which the service innovation process can be outcome and process-based.