As smart technology develops at an ever-increasing pace, firms are investing heavily in boosting the smartness of their service systems. To support these endeavors, practitioners and researchers call for guidance on how to account for customers’ complex needs and wants when making smartness decisions. This research adopts the firm’s perspective on investigating how and why decisions on smartness are undertaken. It examines how firms configure the smartness of service systems and communicate the intended value to customers through value propositions. Critically, it further unravels why firms make these decisions on the basis of their reasoning about aligning resources to create value for customers—that is, the firm’s value creation logic. Our analysis of multiple case studies across several industry sectors reveals a number of pathways to service system smartness. These are labeled cautious, tailored, premium, and balanced pathways, and each entails specific combinations of smartness configurations and customer value propositions, underpinned by particular logics. A more nuanced analysis shows that firms may pursue multiple pathways simultaneously when targeting different customer segments and indicates how firms’ characteristics may shape their pathways to smartness. The resulting framework can operate as a guiding tool for managers and consultants when making important smartness decisions.
AllmendingerGlenLombregliaRalph (2005), “Four Strategies for the Age of Smart Services,” Harvard Business Review, 83 (10), 131-145.
2.
AndersonLaurelOstromAmy L. (2015), “Transformative Service Research: Advancing our knowledge about service and well-being,” Journal of Service Research, 18 (3), 243-249.
3.
AnkeJürgenPoeppelbussJensAltRainer (2020), “It Takes More Than Two to Tango: Identifying Roles and Patterns in Multi-Actor Smart Service Innovation,” Schmalenbach Business Review, 72 (4), 599-634.
4.
AtzoriLuigiIeraAntonioMorabitoGiacomo (2010), “The Internet of Things: A survey,” Computer Networks, 54 (15), 2787-2805.
5.
BeirãoGabrielaPatrícioLiaFiskRaymond P. (2017), “Value Cocreation in Service Ecosystems: Investigating Health Care at the Micro, Meso, and Macro Levels,” Journal of Service Management, 28 (2), 1757-5818.
6.
BeverungenDanielKundischDennisWünderlichNancy (2020), “Transforming into a Platform Provider: Strategic Options for Industrial Smart Service Providers,” Journal of Service Management, 32 (4), 507-532.
7.
BeverungenDanielMüllerOliverMatznerMartinJanMendlingBrockeJan Vom (2019), “Conceptualizing Smart Service Systems,” Electronic Markets, 29 (1), 7-18.
8.
BilsteinNicolaStummerChristian (2021), “Call for Papers Managing Smart Services and Smart Service Systems,” Journal of Service Management Research, Special Issue.
9.
BlockerChristopher P.BarriosAndrés (2015), “The Transformative Value of a Service Experience,” Journal of Service Research, 18 (3), 265-283.
10.
BlockerChristopher P.DavisBrennanAndersonLaurel (2022), “Unintended Consequences in Transformative Service Research: Helping Without Harming,” Journal of Service Research, 25 (1), 3-8.
11.
BregeHaraldKindströmDaniel (2021), “Proactivity and Responsiveness in Value Creation: A Conceptual Typology of Market Strategies,” Journal of Business & Industrial Marketing, 36 (1), 72-85.
12.
CaoLanlan (2021), “Artificial Intelligence in Retail: Applications and Value Creation Logics,” International Journal of Retail & Distribution Management, 49 (7), 958-976.
13.
ChandlerS. (2019), “IKEA Smart Home Investment Could be Boost the Internet of Things Needs,” Forbes, August 24, A1.
14.
ChandyRajesh K.JoharGita VenkataramaniMoormanChristineRobertsJohn H. (2021), “Better Marketing for a Better World,” Journal of Marketing, 85 (3), 1-9.
15.
ChoukInèsManiZied (2019), “Factors for and Against Resistance to Smart Services: Role of Consumer Lifestyle and Ecosystem Related Variables,” Journal of Services Marketing, 33 (4), 449-462.
16.
CreswellJohn W.PothCheryl N. (2019), Qualitative Inquiry and Research Design. Thousand Oaks, CA: Sage.
17.
De BruyneMarie-JulieVerleyeKatrien (2022), “Realizing the Economic and Circular Potential of Sharing Business Models by Engaging Consumers,” Journal of Service Management, ahead-of-print.
18.
De KeyserArneKöcherSarahAlkireLindaVerbeeckCédricKandampullyJay (2019), “Frontline Service Technology Infusion: Conceptual Archetypes and Future Research Directions,” Journal of Service Management, 30 (1), 156-183.
19.
DreyerSonjaOlivottiDanielLebekBenediktBreitnerMichael H. (2019), “Focusing the Customer Through Smart Services: A Literature Review,” Electronic Markets, 29 (1), 55-78.
20.
EbelMartinDavidJaspertJens Poeppelbuss (2022). Smart already at design time: Pattern-based smart service innovation in manufacturing. Computers in Industry, 138, 103625.
21.
EisenhardtKathleen M. (1989), “Building Theories from Case Study Research,” Academy of Management Review, 14 (4), 532-550.
22.
EppAmber M.OtnesCele C. (2021), “High-Quality Qualitative Research: Getting Into Gear,” Journal of Service Research, 24 (2), 163-167.
23.
FischerMarcusHeimDavidHofmannAdrianJanieschChristianKlimaChristophWinkelmannAxel (2020), “A Taxonomy and Archetypes of Smart Services for Smart Living,” Electronic Markets, 30 (1), 131-149.
24.
GonçalvesLuisaPatrícioLiaTeixeiraJorge GrenhaWuenderlichNancy V. (2020), “Understanding the Customer Experience with Smart Services,” Journal of Service Management, 31 (4), 723-744.
25.
GrönroosChristian (2006), “Adopting a Service Logic for Marketing,” Marketing Theory, 6 (3), 317-333.
26.
HarveyJohnPoorrezaeiMojtabaWoodallTonyNica-AvramGeorgianaSmithGavinAjiboyeToluKholodovaKarinaZhuKai (2020), “The Smart Home: How Consumers Craft New Service Networks by Combining Heterogeneous Smart Domestic Products,” Journal of Service Research, 23 (4), 504-526.
27.
HenkensBiekeVerleyeKatrienLarivièreBart (2021), “The Smarter, the Better?! Customer Well-Being, Engagement, and Perceptions in Smart Service Systems,” International Journal of Research in Marketing, 38 (2), 425-447.
28.
HuangMing-HuiRustRoland T. (2018), “Artificial intelligence in service,” Journal of Service Research, 21 (2), 155-172.
29.
HuangMing-HuiRustRoland T. (2021), “Engaged to a Robot? The Role of AI in Service,” Journal of Service Research, 24 (1), 30-41.
30.
KabadayiSertanAliFaizanChoiHyeyoonJoostenHermLuCan (2019), “Smart service Experience in Hospitality and Tourism Services: A Conceptualization and Future Research Agenda,” Journal of Service Management, 30 (3), 326-348.
31.
KambhampatyA. P.CreswellJ. (2021), The Era of the Celebrity Meal. New York: New York Times, December 8, A1.
32.
LangleyDavid J.van DoornJennyNgIrene C. L.StieglitzStefanLazovikAlexanderBoonstraAlbert (2021), “The Internet of Everything: Smart Things and Their Impact on Business Models,” Journal of Business Research, 122, 853-863.
33.
Leroi-WereldsSara (2019), “An Update on Customer Value: State of the Art, Revised Typology, and Research Agenda,” Journal of Service Management, 30 (5), 650-680.
34.
Leroi-WereldsSaraVerleyeKatrienLineNathanielBoveLiliana (2021), “Value Proposition Dynamics in Response to External Event Triggers,” Journal of Business Research, 136, 274-283.
35.
LimChiehyeonMaglioPaul P. (2018), “Data-Driven Understanding of Smart Service Systems Through Text Mining,” Service Science, 10 (2), 154-180.
36.
LiuZhiwenMingXinguoSongWenyan (2019), “A Framework Integrating Interval-Valued Hesitant Fuzzy DEMATEL Method to Capture and Evaluate Co-Creative Value Propositions for Smart PSS,” Journal of Cleaner Production, 215, 611-625.
37.
LockeKarenMartha FeldmanKaren Golden-Biddle (2020). Coding practices and iterativity: Beyond templates for analyzing qualitative data. Organizational Research Methods, 25(2), 262-284.
38.
NgIrene CLWakenshawSusan YL (2017), “The Internet-of-Things: Review and Research Directions,” International Journal of Research in Marketing, 34 (1), 3-21.
39.
O’BoyleBritta (2020), “Google Assistant vs Alexa vs Siri: Battle of the Personal Assistants,” Pocket-Lint, September 28, A1.
40.
OstromAmy L.FieldJoy M.FotheringhamDarimaSubramonyMaheshGustafssonAndersLemonKatherine N.HuangMing-HuiMcColl-KennedyJanet R. (2021), “Service Research Priorities: Managing and Delivering Service in Turbulent Times,” Journal of Service Research, 24 (3), 329-353.
41.
PardoCatherineIvensBjörn SvenPaganiMargherita (2020), “Are Products Striking Back? The Rise of Smart Products in Business Markets,” Industrial Marketing Management, 90, 205-220.
42.
PayneAdrianFrowPennieEggertAndreas (2017), “The Customer Value Proposition: Evolution, Development, and Application in Marketing,” Journal of the Academy of Marketing Science, 45 (4), 467-489.
43.
PoeppelbussJensMartin EbelAnkeJürgen (2021). Iterative uncertainty reduction in multi-actor smart service innovation. Electronic Markets, 32(2), 599-627.
44.
PorterMichael E.HeppelmannJames E. (2014), “How Smart, Connected Products are Transforming Competition,” Harvard Business Review, 92 (11), 64-88.
45.
PuntoniStefanoReczekRebecca WalkerGieslerMarkusBottiSimona (2021), “Consumers and Artificial Intelligence: An Experiential Perspective,” Journal of Marketing, 85 (1), 131-151.
46.
RaffStefanWentzelDanielObwegeserNikolaus (2020), “Smart Products: Conceptual Review, Synthesis, and Research Directions,” Journal of Product Innovation Management, 37 (5), 379-404.
47.
RantaValtteriKeränenJoonaAarikka-StenroosLeena (2020), “How B2B Suppliers Articulate Customer Value Propositions in the Circular Economy: Four Innovation-Driven Value Creation Logics,” Industrial Marketing Management, 87, 291-305.
48.
RijsdijkSerge A.HultinkErik Jan (2009), “How Today’s Consumers Perceive Tomorrow’s Smart Products,” Journal of Product Innovation Management, 26 (1), 24-42.
49.
RingelMichaelGrasslFlorianBaezaRamónKennedyDerekSpiraMichealManlyJustin (2019), “The most innovative companies 2019: The rise of AI, platforms, and ecosystems,” Boston Consulting Group, March 21, A1.
50.
RintamäkiTimoSaarijärviHannu (2021), “An Integrative Framework for Managing Customer Value Propositions,” Journal of Business Research, 134, 754-764.
51.
RudeloffChristianStefaniePakuraFabianEggersThomas Niemand (2021). It takes two to tango: The interplay between decision logics, communication strategies and social media engagement in start-ups. Review of Managerial Science, 16, 681-712.
52.
SklyarAlexeyKowalkowskiChristianSörhammarDavidTronvollBård (2019), “Resource Integration Through Digitalisation: A Service Ecosystem Perspective,” Journal of Marketing Management, 35 (11-12), 974-991.
53.
StrandvikToreMaria HolmlundIlkka Lähteenmäki (2018), “One of these days, things are going to change!” How do you make sense of market disruption?”Business Horizons, 61(3), 477-486.
54.
VargoStephen L.LuschRobert F. (2016), “Institutions and axioms: An extension and update of service-dominant logic,” Journal of the Academy of Marketing Science, 44 (1), 5-23.
55.
VenkateshViswanathJamesYL ThongXuXin (2016), “Unified theory of acceptance and use of technology: A synthesis and the road ahead,” Journal of the Association for Information Systems, 17 (5), 328-376.
56.
VenkateshViswanath (2021), “Adoption and use of AI tools: A research agenda grounded in UTAUT,” Annals of Operations Research, 308(1), 641-652.
57.
VerleyeKatrien (2019), “Designing, Writing-Up and Reviewing Case Study Research: An Equifinality Perspective,” Journal of Service Management, 30 (5), 549-576.
58.
VerleyeKatrienBryan Reber (2022), “Communication in service ecosystems through value propositions: Dilemmas and future research avenues.” Journal of Service Management, 33(4/5), 578-588.
59.
VinkJosinaEdvardssonBoWetter-EdmanKatarinaTronvollBård (2019), “Reshaping Mental Models: Enabling Innovation Through Service Design,” Journal of Service Management, 30 (1), 75-104.
60.
WirtzJochenPattersonPaul G.KunzWerner H.GruberThorstenLuVinh NhatPaluchStefanieMartinsAntje (2018), “Brave New World: Service Robots in the Frontline,” Journal of Service Management, 29 (5), 907-931.
61.
WünderlichNancy V.WangenheimFlorian V.BitnerMary Jo (2013), “High Tech and High Touch: A Framework for Understanding User Attitudes and Behaviors Related to Smart Interactive Services,” Journal of Service Research, 16 (1), 3-20.
62.
YinRobert K. (2018), Case Study Research and Applications: Design and Methods.Thousand Oaks, CA: Sage.
63.
ZeithamlValarie A.VerleyeKatrienHatakIsabellaKollerMonikaZaunerAlexander (2020), “Three Decades of Customer Value Research: Paradigmatic Roots and Future Research Avenues,” Journal of Service Research, 23 (4), 409-432.
Supplementary Material
Please find the following supplemental material available below.
For Open Access articles published under a Creative Commons License, all supplemental material carries the same license as the article it is associated with.
For non-Open Access articles published, all supplemental material carries a non-exclusive license, and permission requests for re-use of supplemental material or any part of supplemental material shall be sent directly to the copyright owner as specified in the copyright notice associated with the article.
