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Paper info: Connect and Rule: The Role of Serial Acquisition, Subsidiary Autonomy, and Network Orchestration in Providing Value within Servitizing Industrial Networks

Title


Connect and Rule: The Role of Serial Acquisition, Subsidiary Autonomy, and Network Orchestration in Providing Value within Servitizing Industrial Networks

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Place of Publication


The paper was published at the 35th IMP-conference in Paris, France in 2019.

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Abstract


Servitization is transforming the way firms are positioned in their networks due to technological advancement in production and transportation, increasingly sophisticated ways firms engage with customers, and change in the perceived value of products versus the value they provide as services. The purpose of this research is to investigate the role of serial acquisition, network orchestration, and subsidiary autonomy in providing value within servitizing industrial networks. A conceptual framework is developed based on the case study of a large Swedish industrial group specializing in selling industrial products and providing industrial solutions through its numerous subsidiaries. The analysis of 14 dyadic interviews with the five subsidiaries and seven customer firms and secondary data reveal interesting findings concerning serial niche acquisition strategy and subsidiary autonomy, network dynamics, and the role of subsidiary sales force regarding network characteristics and servitization. First, we find that network orchestration and subsidiary autonomy go hand in hand for creating greater value when following a serial acquisition strategy in servitizing industries. Second, network brokerage and connecting structural holes provide firms with a unique capability to orchestrate servitizing industrial networks, tackle coopetition challenges, and leverage these networks for value provision.