Complexity approach to joint value discovery in service innovation management

The paper describes how complexity notions can be useful to model Servitization dynamics in industrial companies moving from product based to service oriented configuration. It is a movement towards joint value discovery in industrial service innovation management increasing potentials for radical or architectural innovation. Based on process oriented research on global industrial companies identifying transition phases of Servitization, a complexity model is developed to understand, predict and guide the process, mechanisms, and outcomes of increased capacity for joint value discovery. The model synthesizes and extends to service innovation management a complexity approach originally introduced by Goldstein, Hazy and Lichtenstein (2010) and called the Cusp of Change Model. The theoretical developments are particularly useful in guiding leadership of innovation in broader organizational and networked settings, contributing to development of service innovation strategies as well as systemic leadership of innovation activity in services in global industrial companies.

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