Abstract

Purpose – The purpose of this paper is to report on nine in‐depth case histories of manufacturing firms introducing significant new service innovations. Manufacturing firms are under increasing pressure to diversify into lines of business that offer unique contributions to long term profitability and this paper increases understanding of how incumbent firms successfully accomplish this transition.Design/methodology/approach – Using analytical induction the authors sample published announcements of significant new service offerings by well‐established manufacturing firms. An example of this type of service innovation would be General Motor's offering of OnStar remote driver support systems (not included in this sample). A total of nine cases (43 percent of the companies contacted) participated in this case study approach.Findings – The paper identifies two primary strategies pursued by these firms development and launch of significant new service innovations representing important diversification moves for...

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