Toward Digital Service-Sales Ambidexterity in Industrial Firms: A Microfoundations Perspective

Industrial firms have embarked on service transition strategies for some time, but revenues are still lagging behind expectations. Although recent advances in digital technology enable new service offerings and commercial models, the salesforce struggles to realize the full potential of these opportunities. Similarly, frontline service employees are increasingly asked to engage in service and sales activities and, hence, to display service-sales ambidexterity (SSA). Despite the growing interest in SSA, the understandings of the concept, its outcomes, and antecedents remain limited. This thesis is among the first to investigate SSA from the perspective of the increasing role of digital technology in industrial services. Specifically, it examines how industrial firms can successfully develop digital service-sales ambidexterity (DSSA). The thesis comprises four studies. Study 1 merges interview and ethnographic data to identify revenue models that form microfoundations of DSSA. The results reveal that, in the digital era, indirect and freemium revenue models assist in achieving service outcomes and overcoming barriers to sales outcomes. Study 2 uses interviews with service salespeople and managers to explore the conceptualization of value-based selling (VBS). The findings point to a conceptualization of VBS as an organizational capability comprising six routine-based building blocks. They also suggest that VBS can be measured with a formative-formative higher-order construct. Study 3 applies partial least squares structural equation modeling to survey data in order to examine the performance outcomes and organizational boundary conditions of VBS. The results show a positive link between VBS and salesforce performance. Moreover, the quality of the sales strategy and sales-related incentives but not service-related incentives are systematically linked to higher levels of VBS. In addition, formalization reduces the positive performance effect of VBS, but proactive market orientation does not have any moderating effect. Study 4 draws on interview data to explore organizational enablers of DSSA. Eight organizational enablers were found to operate at the macro-, micro- and mesolevel. These findings have several theoretical and managerial implications. The thesis contributes to servitization, SSA, and VBS literature by adding 1) the DSSA concept, 2) digital service revenue model configurations, 3) a multi-dimensional conceptualization of VBS as organizational capability, 4) a higher-order VBS measure, 5) organization-level boundary conditions of VBS, and 6) organizational enablers of DSSA. The findings are consolidated in a managerial framework that charts the path toward DSSA in industrial firms.

Industrial firms have embarked on service transition strategies for some time, but revenues are still lagging behind expectations. Although recent advances in digital technology enable new service offerings and commercial models, the salesforce struggles to realize the full potential of these opportunities. Similarly, frontline service employees are increasingly asked to engage in service and sales activities and, hence, to display service-sales ambidexterity (SSA). Despite the growing interest in SSA, the understandings of the concept, its outcomes, and antecedents remain limited. This thesis is among the first to investigate SSA from the perspective of the increasing role of digital technology in industrial services. Specifically, it examines how industrial firms can successfully develop digital service-sales ambidexterity (DSSA). The thesis comprises four studies. Study 1 merges interview and ethnographic data to identify revenue models that form microfoundations of DSSA. The results reveal that, in the digital era, indirect and freemium revenue models assist in achieving service outcomes and overcoming barriers to sales outcomes. Study 2 uses interviews with service salespeople and managers to explore the conceptualization of value-based selling (VBS). The findings point to a conceptualization of VBS as an organizational capability comprising six routine-based building blocks. They also suggest that VBS can be measured with a formative-formative higher-order construct. Study 3 applies partial least squares structural equation modeling to survey data in order to examine the performance outcomes and organizational boundary conditions of VBS. The results show a positive link between VBS and salesforce performance. Moreover, the quality of the sales strategy and sales-related incentives but not service-related incentives are systematically linked to higher levels of VBS. In addition, formalization reduces the positive performance effect of VBS, but proactive market orientation does not have any moderating effect. Study 4 draws on interview data to explore organizational enablers of DSSA. Eight organizational enablers were found to operate at the macro-, micro- and mesolevel. These findings have several theoretical and managerial implications. The thesis contributes to servitization, SSA, and VBS literature by adding 1) the DSSA concept, 2) digital service revenue model configurations, 3) a multi-dimensional conceptualization of VBS as organizational capability, 4) a higher-order VBS measure, 5) organization-level boundary conditions of VBS, and 6) organizational enablers of DSSA. The findings are consolidated in a managerial framework that charts the path toward DSSA in industrial firms.