Business model diversification through Product-Service Systems: Demand-relatedness perspective

Abstract

Despite the prevalence of portfolio of business models, there remains a dearth of understanding regarding their dynamics, particularly in non-digital native firms. Operating multiple business model can be a challenging endeavour, as their intra- and inter- complementarities often necessitate active monitoring and restructuring to ensure alignment with other models within a firm's portfolio. Prior research has primarily emphasized the advantages of resource and capability complementarities, while undervaluing the significance of customer complementarities. In this research-in-progress, we conducted a longitudinal qualitative analysis of Epiroc's various business models to address this gap and identified their synergies using network effects. Specifically, we explored the role of product-service business models in the firm's growth and competitive advantage using four value drivers and mapped the resulting business model portfolio.