Many organisations need to increase their use and knowledge of service innovation in order to answer up to the increased demand for sustainable services and offerings that cater to the needs of their users. They need to become better at understanding that the best starting point for organisational development is outside the organisation where the value of their products and services are Co created with other actors and stakeholders. This paper explores the possibility of creating a serious game that introduces service innovation using the design science research and workshops as a collaboration method. The most important Service Innovation elements to include in the game are evaluated and the game ideas generated are examined through the lens of two different game design frameworks.

Water is an essential part of human life. According to the sustainable development goal (SDG), monitoring water quality is a fundamental goal of the international community. Therefore, there has been research on how the quality of water can be monitored and improved.  Data related to water quality can provide service opportunities such as to inform if the water is suitable for drinking by monitoring the quality of water resources. However, there has been limited research exploring opportunities and challenges of digital water quality monitoring services to fulfill requirements in rural areas, such as clean and safe water for drinking. Some challenges can be due to the geographical location of the area or avoiding certain regions for implementing a service due to political agenda or infrastructure, especially in less developed countries or areas. The lack of exploration of opportunities points to the need to further investigate service opportunities like to inform if the water is suitable for drinking in rural areas. It is crucial to monitor water quality and offer services because bad water quality can lead to health issues or poor yield in agriculture, some of the few consequences. Therefore, in my paper, using the Design Science Research (DSR) approach, I have explored various opportunities and challenges of digital water quality monitoring services in Indian rural areas. The result demonstrates opportunities related to the exploration of digital water quality monitoring services in rural areas and the challenges that need to be overcome in order to realize the opportunities. This overview can inform researchers, designers, and stakeholders to understand new service opportunities and challenges of digital water quality monitoring services in rural areas.

The importance of product design has been getting attention in the past decade from scholars and practitioners. Design plays a critical role in firms’ product development and business strategies. In recent years, scholars began to see design innovation as another vital innovation element of a new product. A new product should encompass at least two innovation elements: technology innovation and design innovation. While technology points to the function of a product, design points to the form of a product. Despite the advocacy of scholarly examination of design innovation, there are few studies of design innovation. In this dissertation, two empirical studies have been conducted to examine the outcome of design innovation and the antecedents of design activities, respectively. Study 1 examines the effect of design innovation (as well as technology and service innovation) on new product performance. Additionally, the study examines the roles of marketing innovation and process innovation in mediating the relationships between these innovation activities and new product performance. Study 2 examines how firms’ absorptive capacity, competitive responsiveness, and product development resources drive design and R&D activities. Design and R&D activities typically lead to the introduction of design and technology innovation. Regarding the findings from this dissertation, the first study shows that design, technology, and service innovation (which, argued by this study, are the three main innovation elements of a new product) all contribute to new product performance. Additionally, marketing innovation and process innovation are found to mediate the relationship between these innovation elements and performance. The second study shows that a firm’s competitor responsiveness, absorptive capacity (captured by “institutional sources” and “market sources of information”), and product development resources (captured by “cross-functional design team”, “design or information control technologies”, and “concurrent engineering”) are positively related to firms’ design and R&D activities. / Thesis / Doctor of Business Administration (DBA) / Design plays a critical role in firms’ product development and business strategies. Traditionally, technology innovation has been the focus of new product development. In recent years, scholars have begun to see design innovation as another vital innovation element of a new product. In this dissertation, two empirical studies have been conducted to examine the outcome of design innovation and the antecedents of design activities, respectively. There are two key goals of this dissertation. The first goal is to understand the outcome of design innovation and what other factors jointly contribute to the outcome. The second goal is to understand what strategies that firms adopt lead to design activities. Answers to the first question show the performance implication of design innovation and the factors that drive the performance. Meanwhile, answers to the second question shed light on the firm strategies that drive design activities, which may lead to the introduction of design innovation. Empirical studies that tackle these questions are sparse.

This thesis examines some factors that play a role in creating new opportunities for service innovationwithin the context of budget hotels, and aims to identify the various factors that characterize servicelogic in practice. The research question aims to explore the conditions that are required to develop astructured service innovation process at Good Morning hotel, which ultimately influences thecustomer experience. The study employs a qualitative research approach and collects data throughin-depth interviews from different perspectives, including management, staff, and customers, to gaininsights into their perceptions and their experiences of service logic. Through a deeper understandingof service logic, Good Morning Hotel can identify new ways to deliver value to its customers.The findings of this study suggest that there are divergent views regarding the awareness of servicelogic among hotel staff. On one hand, some may be unaware of service logic. On the other hand, astrong culture emphasizing the creation of a positive customer experience has been observed at the hotel.

Intense global competition and rapid technological advances have seen innovation become central towards enabling firms to adapt and rejuvenate themselves. While firms become increasingly focused on innovation, the challenge of managing innovation and developing innovation capabilities still remains. The purpose of this thesis is to analyse and evaluate the innovation capabilities of Ericsson’s Shared Services Organization (SSO). To do so, the existing literature and theories are synthesized and a multi-dimensional framework is utilized to conceptualize the determinants of organizational innovation capabilities. This framework is applied to analyse and evaluate the innovation capabilities of Ericsson’s SSO. Empirical data are collected through interviews in conjunction with qualitative content analysis of internal documents and participation in several meetings and discussions.Overall, the analysis of the case study revealed some common areas related to innovation capabilities, such as strategy intent for innovation, employees’ engagement with innovation initiatives, structured approach for innovation and management support. The conclusions and implications suggested reflect on the ways in which the case study could create a functional innovation program for fostering innovation in the organization and reaching its performance goals by exploiting untapped resources for innovation.

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Over the last decades, studies have found that transformational drivers affect how firms innovate their business models (Chesbrough, 2010; Massa et al., 2016). In markets in which physical products become commodities, the servitization of business models is a transformational driver for firms (Wise & Baumgartner, 1999). For its part, digitalization increases the potential to reshape business models through novel use cases of technology (Yoo et al., 2010). Recently, digitalization was found to extend the opportunities from servitization through digital technologies as digital servitization (Paschou et al., 2020). Digital servitization describes a firm’s shift from product-centric offerings to service-centric offerings with the help of novel IT assets (Naik et al., 2020). The manufacturing industry provides promising examples of firms with portfolios of physical offerings that might undergo such a transformational shift (Baines et al., 2017). So far, digital servitization research focuses primarily on four topics: re-defining the notion of servitization in the context of digitalization, identifying digital servitization value drivers, linking the transformation to specific technologies, and deriving how novel service offerings arise (Paschou et al., 2020; Zhou & Song, 2021). Despite the breadth of digital servitization research, how firms can shift to service-centric offerings remains unclear (Kohtamäki et al., 2019). Specifically, research lacks studies on the prerequisites and mechanisms that link theory with evidence on achieving IT-enabled service innovation (Paschou et al., 2020). Further, how firms must organize to build and operate IT-enabled services around these technologies remains unclear (Paschou et al., 2020). In a recent report on the manufacturing industry, practitioners confirm these gaps and associate them with a lack of managerial and technical knowledge (Illner et al., 2020). A theoretical lens that helps to address these shortcomings is the knowledge-based theory. It suggests that knowledge is the primary rationale, so that a firm benefits from its assets (Grant, 1996b; Nonaka, 1994). The knowledge-based theory understands a capability as a directed application of knowledge in a firm’s activities (Grant, 1996b; Nonaka, 1994). In the context of digitalization, firms require IT capabilities based on knowledge of how to capitalize on IT assets (Lee et al., 2015). Digital servitization research finds that IT capabilities are critical for identifying, adapting, and exploiting IT-enabled service innovations (Johansson et al., 2019). Still, little extant research informs firms that undergo digital servitization about which IT capabilities can help to strengthen their competitive advantage (Coreynen et al., 2017). Even though IT capabilities may be necessary for success in innovating IT-enabled services, the required knowledge needs to be disseminated effectively throughout an organization (Foss et al., 2014; Grant, 1996a; Nonaka, 1994). The organizational control theory offers a theoretical perspective about knowledge dissemination mechanisms, which can be horizontal or vertical (Ouchi, 1979). Horizontal knowledge dissemination mechanisms depend on codifying processes in rules or measuring process outputs through indicators, while the locus of exerting these rules and indicators determines the vertical knowledge dissemination. The IT innovation and IT governance literature refers to these knowledge dissemination mechanisms as formalization of IT activities and centralization of IT decision-making (Weill, 2004; Winkler & Brown, 2013; Zmud, 1982). However, how to orchestrate knowledge, particularly for IT capabilities, in firms that undergo digital servitization is not yet clear (Kohtamäki et al., 2019; Münch et al., 2022; Sjödin et al., 2020). Against this background, this dissertation addresses how manufacturers organize their IT capabilities while encountering the transformational drivers of digital servitization by answering the following overarching research question: How can manufacturers organize their IT capabilities to capitalize on digital servitization? (References to be found in the full text):List of abbreviations in synopsis............................................................................................................V Part I: Synopsis of the dissertation..........................................................................................................11 Motivation.......................................................................................................................................12 Research design...............................................................................................................................22. 1Conceptual approach and research objectives....................................................................22. 2Research methodologies and methods................................................................................4 3Structure of the dissertation.............................................................................................................5 3.1Systematization of the papers.............................................................................................5 3.2Paper1: Revisiting the concept of IT capabilities in the era of digitalization....................7 3.3Paper2: Short and sweet –Multiple mini case studies as a form of rigorous case studyresearch...............................................................................................................................9 3.4Paper3: Linking IT capabilities and competitive advantage of servitized business models..........................................................................................................................................11 3.5Paper4: From selling machinery to hybrid offerings –Organizational impact of digitalservitization on manufacturing firms................................................................................11 3.6Paper5: Manufacturers’ IT-enabled service innovation success as a multifacetedphenomenon: A configurational study..............................................................................13 3.7Paper6: The missing piece –Calibration of qualitative data for qualitative comparativeanalyses in IS research......................................................................................................14 3.8Paper7: Prerequisites and causal recipes for manufacturers’ success in innovating ITenabled services................................................................................................................16 4Conclusion.....................................................................................................................................19 4.1Resultssummary...............................................................................................................19 4.2Contributions....................................................................................................................20 4.2.1Theoretical contributions......................................................................................20 4.2.2Methodological contribution................................................................................21 4.2.3Practical contribution............................................................................................21 4.3Limitations and future research........................................................................................22 5References.....................................................................................................................................24 Part II: Papers of the dissertation...........................................................................................................29 Paper1: Revisiting the concept of IT capabilities in the era of digitalization.......................................30 Paper2: Short and sweet –Multiple mini case studies as a form of rigorous case study research.......41 Paper3: Linking IT capabilities and competitive advantage of servitized business model..................64 Paper4: From selling machinery to hybrid offerings –Organizational impact of digital servitization on manufacturing firms......................................................................................................................80 Paper5: Manufacturers’ IT-enabled service innovation success as a multifaceted phenomenon: A configurational study...................................................................................................................108 Paper6: The missing piece –Calibration of qualitative data for qualitative comparative analyses in IS research........................................................................................................................................119 Paper7: Prerequisites and causal recipes for manufacturers’ success in innovating IT-enabled services.....................................................................................................................................................136 Overview of the digital appendix on CD.............................................................................................174

Yes / The study extends customer-led co-creation research to the related staff-led value co-creation domain. In particular, the purpose of the study is to investigate the role of staff engagement as a facilitator of staff-led value co-creation. Design/methodology/approach: A new conceptual framework develops a model of staff-led value-creation, using three types of staff-led co-creation. A quantitative approach is used. Survey collection yielded a sample of 1165 employees in an Australian not-for-profit context across nineteen organizations. AMOS SEM (Structural Equation Modelling) analyzes the data. Findings: A major finding is the nexus between staff engagement and staff-led value co-creation. The nexus applies for three types of staff-led co-creation and three staff categories. Different explanatory mechanisms apply to each type of staff-led value co-creation. Research Limitations/implications: The not-for-profit context may not generalize to the for-profit sector, but future research could clarify this matter. Practical implications: The results can inform organizations wishing to create greater service contributions through greater staff participation, which can include a staff-initiating (staff-led) role. Different value co-creation targets require different corporate triggers, reflecting the different explanatory mechanisms of each co-creation type. Social Implications: The not-for-profit context provides major social implications. Originality/value: The emphasis on staff-led value co-creation augments the customer-led co-creation literature. Additionally, exploring the (staff) engagement to (staff) value co-creation nexus is a novel contribution.

Dans une logique d’innovation ouverte une attention particulière a été accordée à la relation entre le monde académique et l'industrie, en focalisant surtout sur les universités. Mais les "Research and Technology Organizations" (RTOs) sont également une partie importante, quoique peu étudiée, du monde académique. Le but de ce projet est d'étudier le rôle des RTOs dans l'innovation ouverte de service, en prenant en compte une double perspectif; interne et externe. Plus précisément, dans la première partie du projet, nous entreprenons une analyse théorique et des études de cas dans 4 RTOs, afin d'identifier les capacités d'innovation de service uniques des RTOs. Dans la deuxième partie du projet, nous étudions les RTOs du point de vue externe, en comparant les RTOs aux TTOs/universités en termes de leur «offre» à l'industrie. L'analyse est effectuée au niveau conceptuel mais aussi empiriquement basée sur l'analyse statistique des données de l'Enquête Communautaire sur l'innovation (ECI). Nos résultats indiquent que les RTOs sont des types supérieurs d'intermédiaire qui sont en mesure non seulement de faciliter, mais de catalyser le processus d'innovation. / In the current complex and open innovation landscape, researchers have given special attention in the relationship between academia and industry, focusing mainly on the role of universities. But Research and Technology Organizations (RTOs) are also an important, yet understudied, part of public research world. The purpose of this PhD project is to study the role of RTOs in the open service innovation landscape, taking a dual perspective. More specifically, in the first part of the project, we undertake a theoretical analysis together with case studies in 4 selected and renowned RTOs, in order to identify the unique service innovation capabilities of RTOs. In the second part of the project we take an external perspective, comparing RTOs to TTOs/ universities in terms of their “offering” to their partners. The analysis is performed on the conceptual level but also empirically based on statistical analysis of the Community Innovation Survey data. Our overall results indicate that RTOs represent a superior type of intermediary in open innovation that are able not only to facilitate but also to catalyse the innovation process.

Background and purpose - Digitisation is connecting various business actors to create interconnected ecosystems through digital platforms. Meanwhile entrepreneurial ecosystems are offering various benefits for start-ups e.g. through support organisations that offer services for them. Currently, these start-up support organisations face the challenge of leveraging digital services to create value for their member start-ups. The purpose of this study is to investigate how the digital services offered in start-up support organisations create value for start-ups. Approach - From a theoretical perspective, the sociology of value and service dominant logic concepts such as value co-creation and service ecosystems are considered. Qualitative methods were used to conduct a pre-study and an in-depth case study with a start-up hub in Stockholm's entrepreneurial ecosystem. Data was collected using 18 semi-structured interviews with start-ups and other actors in the ecosystem and participant observations of 17 events. Findings - Needs and challenges for start-ups were identified and mapped against the digital services used by the start-ups. These services facilitate interaction between various actors in the start-up hub. Seven interconnected value types for the start-ups were identified emerging from the use of digital and non-digital services in the start-up hub. Moreover, many of the digital services are not provided by the start-up hub alone but in collaboration with other actors, connecting the start-up hub to other actors in the start-up ecosystem. Research limitations and implications - The findings contribute to the understanding of how start-up support organisations leverage digital services to support their member start-ups. The connection of digital service usage to the creation of various value types provides a theoretical concept to research about service ecosystem. As the study has been conducted with a limited number of respondents and events in Stockholm, further research in other ecosystems and using different methods is suggested to ensure generalisability of the findings of this study. Practical implications - A number of practical suggestions for start-up support organisations can be derived from the findings, including that start-up support organisations can benefit from establishing and moderating a digital community, involving several actors from the ecosystem and continuously adapting digital services to the changing environment and needs of start-ups. Originality - To the best knowledge of the authors, this is the first study to investigate digital services in entrepreneurial ecosystems from the perspective of value in service ecosystems. / Bakgrund och syfte - Digitalisering förbinder olika affärsaktörer för att skapa sammankopplade ekosystem genom digitala plattformar. Samtidigt erbjuder start-up ekosystem olika fördelar för start-ups, till exempel genom stödorganisationer som erbjuder tjänster för start-ups. För tillfället möter dessa start-up stödorganisationer utmaningen att utnyttja digitala tjänster för att skapa värde för sina medlems start-ups. Syftet med denna studie är att undersöka hur de digitala tjänster som erbjuds av stödorganisationerna skapar värde för start-ups. Tillvägagångssätt - Från ett teoretiskt perspektiv beaktas sociologin av värde och service dominerande logik begrepp som värde medskapande och serviceekosystem. Kvalitativa metoder användes för att genomföra en förstudie och en fördjupad fallstudie med ett start-up hub i Stockholms entreprenörsekosystem. Data samlades in med 18 halvstrukturerade intervjuer med start-ups och andra aktörer i ekosystemet och deltagarobservationer av 17 evenemang. Fynd - Behov och utmaningar för start-ups identifierades och mappades mot de digitala tjänster som start-ups använde. Dessa tjänster underlättar interaktion mellan olika aktörer i start-up hubben. Sju sammankopplade värdetyper för start-ups identifierades som en följd av användningen av digitala och icke-digitala tjänster i start-up hubben. Dessutom är många av de digitala tjänsterna inte tillhandahållen av start-uperna ensam men i samarbete med andra aktörer, som kopplar ihop start-up hubben till andra aktörer i start-up ekosystemet. Forskningsbegränsningar och konsekvenser - Fynden bidrar till att förstå hur start-up stödorganisationer utnyttjar digitala tjänster för att stöda sina medlemmar. Anslutningen av digital serviceanvändning till skapandet av olika värdetyper ger ett teoretiskt koncept för att undersöka serviceekosystemet. Eftersom studien har genomförts med ett begränsat antal respondenter och evenemang i Stockholm, föreslås ytterligare forskning i andra ekosystem och användande av olika metoder för att säkerställa generaliserbarhet av resultaten i denna studie. Praktiska konsekvenser - Ett antal praktiska förslag till start-up stödorganisationer kan härledas från resultaten, bland annat att de start-up stödorganisationerna kan dra nytta av att etablera och moderera ett digitalt samhälle, involvera flera aktörer från ekosystemet och kontinuerligt anpassa digitala tjänster till förändringen av miljön och behovet av start-ups. Originalitet – Till bästa kunskapen av författarna, är detta den första studien för att undersöka digitala tjänster i entreprenörsekosystem från perspektivet av värdet i service ekosystemen.