Paths toward advanced service-oriented business models: A configurational analysis of small- and medium-sized incumbent manufacturers(1)

The present article contributes to the theory of Business Model Innovation by incumbent firms via digital ser-vitization. Our research explores the conditions affecting manufacturers' ability to innovate their business models by developing and supplying advanced, digitally-based services. The authors performed a Qualitative Compar-ative Analysis via a qualitative investigation of the novel business models adopted by 19 Italian small-and medium-sized incumbent manufacturers. Our study found a series of theoretically relevant causal factors for the targeted outcome variable: size and investments, customer intimacy, and external service suppliers are crucial paths for developing successful digitally-based advanced services. The findings suggest three managerial im-plications: first, managers must capitalise on corporate knowledge and assets, mapping and leveraging useful people and technologies. Second, they should seek external service providers related to technology and strategy/ organisation to help them update the value proposition. Third, they must build and foster customer intimacy and capitalise on key customers, either leveraging the extant sales/field service structures or envisioning new direct data exchange channels.