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Solution business fitness: measuring and managing across business logics

Solution business fitness: measuring and managing across business logics Firms transforming from a product supplier into a solution provider need to develop entirely new organizational capabilities or re-configure existing ones. This paper aims to conceptualize solution business fitness (SBF) as a construct that captures comprehensively the capabilities necessary for a firm to operate successfully in solution business and investigates how the construct can be measured.Design/methodology/approachBased on a conceptualization of solution-specific capabilities and SBF, the development of the SBF measurement model followed a three-step procedure: domain specification and conceptual development, qualitative pre-study and quantitative pre-study. The SBF measurement model and its relevance were studied in a large scale longitudinal study using survey data from firm representatives, as well as archival data about the turnover and profitability development of the respective solution providers.FindingsThe study empirically validates solution-business-specific capabilities as antecedents of firm performance and shows how different business logics applied by firms give capabilities different importance and impact.Practical implicationsManagerially, firms can use the developed measurement tool to assess their current SBF and define the desired target status. When improving the SBF, managers should pay special attention to the business logic of their firm, as the required capabilities are context-dependent.Originality/valueThe study is the first to conceptualize and measure SBF and to empirically investigate the moderating role of business logic on the importance of the concept and its elements. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business and Industrial Marketing Emerald Publishing

Solution business fitness: measuring and managing across business logics

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References (111)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0885-8624
eISSN
0885-8624
DOI
10.1108/jbim-06-2020-0297
Publisher site
See Article on Publisher Site

Abstract

Firms transforming from a product supplier into a solution provider need to develop entirely new organizational capabilities or re-configure existing ones. This paper aims to conceptualize solution business fitness (SBF) as a construct that captures comprehensively the capabilities necessary for a firm to operate successfully in solution business and investigates how the construct can be measured.Design/methodology/approachBased on a conceptualization of solution-specific capabilities and SBF, the development of the SBF measurement model followed a three-step procedure: domain specification and conceptual development, qualitative pre-study and quantitative pre-study. The SBF measurement model and its relevance were studied in a large scale longitudinal study using survey data from firm representatives, as well as archival data about the turnover and profitability development of the respective solution providers.FindingsThe study empirically validates solution-business-specific capabilities as antecedents of firm performance and shows how different business logics applied by firms give capabilities different importance and impact.Practical implicationsManagerially, firms can use the developed measurement tool to assess their current SBF and define the desired target status. When improving the SBF, managers should pay special attention to the business logic of their firm, as the required capabilities are context-dependent.Originality/valueThe study is the first to conceptualize and measure SBF and to empirically investigate the moderating role of business logic on the importance of the concept and its elements.

Journal

Journal of Business and Industrial MarketingEmerald Publishing

Published: Jul 27, 2021

Keywords: Solution business; Capabilities; Business logic; Organizational fitness

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