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Engineering service (ES) development, particularly with supplier co-creation, is nontrivial, and the literature has acknowledged the high relevance of uncertainty in this context. This study aims to investigate the relationship between different supplier co-creation modes (operationally independent [OI] and operationally dependent [OD]) and uncertainty criticality arising during ES development.

This study develops a conceptual framework of five uncertainty types by synthesizing the relevant literature from service management and new product development. This framework guided the empirical work of two in-depth case studies, describing uncertainty criticality in OI and OD supplier co-creation.

The findings show that environmental and organizational uncertainty were generally of high criticality for ES development independently of the supplier co-creation mode. Moreover, uncertainty criticality varied between the two cases, with higher criticality of technical and relational uncertainty as well as less resource uncertainty experienced by the focal organization in the OD case. This suggests that supplier co-creation constitutes an uncertainty reallocation.

Further research is needed to test the generalizability of the qualitative results through quantitative studies.

This research contributes to the service management literature by showing the varying uncertainty profiles manufacturing organizations face when engaging in different supplier co-creation modes. Furthermore, this research provides novel insights on ES development to the broader discussion on ES management.

Engineering-service (ES) development is characterised by high uncertainty, the management of which is crucial for the success of the offering during the provision of ESs. This paper studies suitable organisational capabilities to address different uncertainty types.

Based on conceptualisation of individual uncertainty types and organisational capabilities, this study investigated their empirical links through six case studies of ES development projects. The data consisted of 64 semi-structured interviews, 10 weeks of observational data and 166 supporting documents describing the projects.

The findings provide empirical evidence for four distinct uncertainty types (environmental, organisational, technical and relational uncertainty) and the organisational capabilities needed for addressing them. The authors identified unique dominant capabilities for each uncertainty type (commercialisation for environmental uncertainty, coordination for organisational and technical uncertainty, and relational capabilities for relational uncertainty), which were complemented with supporting capabilities, including project management and integration.

This study contributes to the service operations literature by merging previously separate research streams on uncertainty and organisational capabilities in ESs and servitization. Through this merge, this study offers a more coherent understanding by extending previously sporadic insights into specific links between individual uncertainty types and individual capabilities.

Relational uncertainty determines how relationships develop because it enables the building of trust and commitment. However, relational uncertainty has not been explored in an inter-organisational setting. The purpose of this paper is to investigate how organisations experience relational uncertainty in service dyads and how they resolve it through suitable organisational responses to increase the level of service quality.

The author applies the overall logic of organisational information-processing theory and presents empirical insights from two industrial case studies collected via semi-structured interviews and secondary data.

The findings suggest that relational uncertainty is caused by the partner’s unresolved organisational uncertainty, i.e. their lacking capabilities to deliver or receive (parts of) the service. Furthermore, the author found that resolving the relational uncertainty increased the functional quality while resolving the partner’s organisational uncertainty increased the technical quality of the delivered service.

The author makes two contributions: first,the author introduces relational uncertainty to the OM literature as the inability to predict and explain the actions of a partnering organisation due to a lack of knowledge about their abilities and intentions; and second, the author presents suitable organisational responses to relational uncertainty and their effect on service quality.

The purpose of this paper is to investigate distinctive pathways for product-service system (PSS) development. Moreover, it investigates the contingent effect of the business ecosystem (BE) in terms of being provider-pushed or customer-pulled.

The study adopted a case-based research, performed in the Brazilian and Danish healthcare industries in order to explore the subject.

The results reveal that the capital available for investments influences the pathway. The customer-pulled PSS fast evolved to become result-oriented and connected to a complex resource-dependent network in the BE. The provider-pushed PSS showed a slow evolutionary pathway, limited to product-oriented offerings with low dependence among actors in the BE.

The research offers various managerial implications for PSS providers, policymakers and customers of the healthcare industry.

To increase the global competitiveness of their service business, servitized manufacturers transition towards global services. Yet, the literature has not addressed this development. This study is one of the first to investigate how servitized manufacturers can manage the globalisation of their service business.

The study explores two cases of servitized manufacturers that transitioned from a local organisation of multi-domestic international services to a global-service organisation. The data were collected via semi-structured interviews, observations, and secondary sources.

The authors identify four elements of global service provision: operating model, global performance management, relationship governance, and staffing and employee development. The authors discuss each element and the connections between them, which the authors summarise in a proposed framework for global service provision.

The contributions of this research relate to the proposed framework of global service provision, which extends current conceptualisation of globalisation of routine services. The authors show the unique elements of global service provision of servitized manufacturers and discuss the theoretical and practical implications of the work.

Servitization increases the uncertainty exposure of provider firms due to the operational differences between services and production which is further increased when operations are set in triads. The purpose of this paper is to analyse the uncertainty exposure in servitized triads and explore suitable organisational responses.

A conceptual frame is defined detailing three uncertainty types (environmental, organisational and relational uncertainty) and suitable organisational responses to these. This frame guided the analysis of in-depth case evidence from a cross-national servitized triad in a European-North African set-up which was collected through 29 semi-structured interviews and secondary data.

The empirical study identified the existence of the three uncertainty types and directional knock-on effects between them. Specifically, environmental uncertainty created organisational uncertainty which in turn created relational uncertainty. The uncertainty types were reduced through targeted organisational responses where formal relational governance reduced environmental uncertainty, service capabilities reduced organisational uncertainty and informal relational governance reduced relational uncertainty. The knock-on effects were reduced through organisational and relational responses.

This paper makes two contributions. First, a structured analysis of the uncertainty exposure in servitized triads is presented which shows the existence of three individual uncertainty types and the knock-on effects between them. Second, organisational responses to reduce the three uncertainty types individually and the knock-on effects between them are presented.

To increase sustainability of their products and enable new business opportunities, manufacturers explore servitization in consumer markets. Yet, the literature has not addressed this development. This study is one of the first to investigate the challenges and benefits for manufacturers and their supply chains when engaging in business-to-consumer (B2C) servitization.

The study explores two unique cases of manufacturers of complex consumer products that aim to extend their service offerings to the end-users. Data were collected via semi-structured interviews, observations and secondary data.

First, the authors identify two factors as prerequisites for a servitized set-up: internal collaboration within the manufacturer and product characteristics (e.g. product complexity). Second, the authors identify the network as an important factor for B2C servitization, which includes the triadic set-up between manufacturer, installer and consumer. Third, the authors identify moderating institutional settings, such as regulations and consumer needs.

This research elaborates existing B2B servitization theory into an empirically informed theoretical framework for B2C contexts. It expands the view on servitization by introducing the network perspective to service a large number of geographically dispersed customers.

The purpose of this paper is to investigate how the complexity of the service offering (service complexity) affects the uncertainty during service operations in engineering services. Specifically, the authors compare the existence of organisational, relational, environmental and technological uncertainty in maintenance services and performance-based services.

The authors present insights from four cases – two each for maintenance services and performance-based services. The in-depth data were based on 56 semi-structured interviews, multiple site visits, meeting notes, service contracts and other secondary data.

The case findings indicate that organisational and relational uncertainty were not linked to service complexity, while observations of environmental and technological uncertainty were higher and more varied for performance-based services. Based on these findings, the authors formulate four propositions regarding the relationship between service complexity and uncertainty in service operations.

This research contributes to the OM literature by suggesting that external sources of uncertainty increase with increasing service complexity, while internal sources of uncertainty remain unchanged.

The purpose of this paper is to explore the information that manufacturing companies have available when competitively bidding for service contracts.

A semi-structured interview study was undertaken with industrialists in various sectors, which are currently facing the issue of servitisation.

One of the main findings was that, despite the novelty of the process, the decision makers at the competitive bidding stage have an understanding of the involved uncertainties. In particular, the uncertainty arising from the customer as the user of the product and evaluator of the competitive bids in addition to the uncertainty connected to the competitors were identified as the main influences on the pricing decision.

The research implications show the influences and considerations during the decision-making process at the competitive bidding stage for service contracts. These include the customer and the competitors.

Shortcomings in the current industrial practice were identified such as the approaches used to communicate the cost estimate for the service contract. The approaches currently used contradict research findings in the area of communicating uncertainty information, which means that further research is to be done to identify optimal approaches to displaying the uncertainty connected to the communicated information.

This paper offers a basis for research to understand the challenges industry faces when competitively bidding for service contracts. This can be used to develop novel approaches in supporting the decision maker such as a model that presents the probability of winning in comparison to the probability of making a profit.