Services growth options for B2B product-centric businesses

Many B2B companies that have traditionally been product-centric businesses (PCBs) are addressing the services opportunity (servitization) providing services aligned with customers operations and/or that address products from other suppliers The purpose of this paper is to create a new typology through which PCBs services strategies can be categorised using these two dimensions which is used to explore four services strategies and three growth options Companies selling less complex products predominantly use services to enhance product differentiation whereas those selling more complex products often undergo servitization with opportunities and risks from each growth option The risks of providing operations services are particularly noted since their successful provision requires significant changes to a PCB s activities The results provide a critique of resource-based theory specifically those resources that enable PCBs to create market differentiation through services The importance of relational resources increases as services strategies involve products from other suppliers and customers operations (C) 2010 Elsevier Inc All rights reserved