Business Servitization: What we know and what is still to come?

Servitization is formally described as the process of seeking additional value through taking services propositions to market, and is an academic theme of increasing relevance. Competitive advantage achieved through services is potentially more sustainable since, being less visible and more labour dependent, services are more difficult to imitate than other strategies focused on product innovation, technological superiority or low prices. Servitization is part of the service dominant logic, which highlights an epistemological shift in the customers understanding of value; from understanding the ‘value in exchange’ of product ownership business models to understanding ‘value in use’ created through access to resources, which entails a transition from transactional value to value-in-use.
Rolls Royce offering hours of use of their engines and not selling them, or IBM developing software and consultancy instead of producing computers are successful business cases of the organizational transformation required when implementing service business models, with ~ 90% of revenues now coming from service or digital provision respectively. These successful strategies are increasingly presented in business school case studies. But, is all that glitters gold? Are servitization strategies a winning recipe for managers and policy makers from across the competitive and industrial landscape? (más…)

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Bridging the Gap: Socially Integrating Cross-border Regions

Cross-border territorial cooperation represents a fascinating arena for research because of its varied and evolving intricacies.  It can be viewed as a development lab where social interactions between different species are formed, or the opposite, a barrier-laden territory destined to increased failures.  I, being the optimist that I am, see it as the former rather than the latter.

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Spain’s last economic stronghold struggles to maintain resilience

Mid-February the Basque employer’s organization Confebask alarmed society and press on the fact that the number of enterprise closures –after already suffering since the outbreak of the financial crisis in 2008- had accelerated sharply over 2012 and that in the first month of the new year the number of bankruptcies had been of an unprecedented monthly height. (más…)

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