Abstract
Although servitization literature has identified the difficulties in combining products with services to improve firm performance, it has offered limited insight into the effects of servitization on radical product innovation performance. To address this gap, in this study we investigate how servitization affects radical product innovation performance through latent needs identification. Based on organizational knowledge creation theory and social structural embeddedness theory, we proposed four hypotheses and tested them with data from 208 Chinese manufacturing firms. The results show that servitization enables a firm to identify latent customer needs, and thus helps the firm to exploit more radical product innovation opportunities. However, a high degree of servitization can lead to an overembedded customer relationship, which reduces the firm’s willingness to capture such opportunities. Furthermore, we find that the overall effect of servitization on radical product innovation performance is inverted U-shaped. Our findings enrich the servitization literature by identifying two roles of servitization in radical product innovation performance.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
