Service business model and performance: Unpacking the complex relationship

Abstract

Servitization is a complex process for capturing value and hence the link between the implementation of services and firm performance is blurred. There have been different attempts to clarify the servitization-performance link quantitatively. The identification of non-linear relationship between the adoption of service business model and performance is academically sound but difficult for practitioners to use or apply in their businesses. In seeking to address this recent literature has introduced moderator variables to better assess this complex relationship. However, to the best of our knowledge there are no theoretical explanation of why the relationship between service implementation and firm performance is not linear. The present research contributes to this debate by exploring the differences between business model and strategy.