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Social sciences
- Production and service management
- Strategic management
- Marketing not elsewhere classified
Incumbent firms across industries opt for servitization as a circular strategy, meaning that they offer circular services (e.g., repair and rental services) while keeping the prevailing linear businesses (e.g., selling products). Practitioners and academics, however, cannot provide a clear answer on how incumbents can manage tensions that emerge from the co-existence of linear sales and circular service businesses at the level of (1) the organization, (2) its offerings, and (3) its ecosystem, which is what the proposed research aims to address. Study 1 draws upon Configurational Theory and uses fuzzy-set Qualitative Comparative Analysis to explore how servitization at incumbent firms affect their economic and circular performance. Study 2 identifies how incumbent firms that opt for servitization can make customers pay for circular services in the presence of linear sales, thereby building upon Utility Theory and applying the Comparative Method for Valuation and Conjoint Analysis. Study 3 relies upon longitudinal case study research to investigate how servitizing incumbent firms can orchestrate their ecosystem over time, thereby drawing upon Ecosystem Theory. With these studies, this research proposal will contribute to a better understanding of how these firms can reconcile their economic and circular performance from a multilevel perspective.