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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.