THEME 1: Perspectives on Service Management

Bo Edvardsson, professor, Center for Service Research, Karlstad University, Sweden, bo.edvardsson@kau.se

Bård Tronvoll, professor, Center for Service Research, Karlstad University, Sweden and Inland Norway University of Applied Sciences, Norway, bard.tronvoll@inn.no

We define service as a perspective on value creation and service management as "a set of organizational competencies for enabling and realizing value creation through service" The chapter gives a brief overview of the evolution of service research and how to managing service in practice. A major part of the chapter will focus on a state-of-the-art discussion on the different themes of the book, including how they are related. This will be illustrated with examples from service management practice.

Prof. a.D. Dr. Dr. h.c. Michael Kleinaltenkamp, Freie Universität Berlin, School of Business & Economics, Marketing Department, Germany

Email: Michael.Kleinaltenkamp@fu-berlin.de

Based on the different understandings of the concept of service, the chapter will first give an overview of the different forms of service management (e.g. B2C vs. B2B, person-related vs. object-related, individual vs. collective, analog vs. virtual). In addition, specific challenges service management is facing are explained (e.g. integration of various resources and actors, significance of human resources, human-machine interaction). Finally, future developments in service management are discussed. They relate to the simplified and cost-efficient coordination of getting access to resources, new forms of securing and transferring rights, the reduction of (labor) costs through the use of new technologies, the development of new service offerings resulting from increased and simplified data use, and finally the development of new service offerings related to service-related data use itself.

Stephen L. Vargo, Professor, Shidler College of Business, University of Hawaii at Manoa, USA, Email: svargo@hawaii.edu

Dr. Julia Fehrer, Senior Lecturer, University of Auckland, New Zealand, Email: j.fehrer@auckland.ac.nz

As a metatheoretical framework for understanding value cocreation through service ecosystems, Service-dominant Logic has been evolved over the last 20 years. This chapter will highlight that development and provide an overview of the current sate and status of the framework. Additionally, it will address midrange theory application of the framework for service management.

Paul P. Maglio, Professor, Ernest and Julio Gallo Management Program, University of California, Merced, Email: pmaglio@ucmerced.edu

Service science aims to integrate theories and methods from several areas to create a unified field of science, engineering, management, and design that is focused on complex human-centered service systems composed of people, technology, organizations, and information operating together to create mutual value. Taking a service science perspective means focusing attention on the people, systems, and mechanisms of value creation - and this has implications for service practice, including implications for interaction design, system design, and value assessment.

Professor Bo Enquist, CTF, Service Research Center, Karlstad University, Sweden, Email: Bo.Enquist@kau.se

Assistant Professor Samuel Petros Sebhatu, CTF, Service Research Center, Karlstad University, Sweden, Email: Samuel.Petros@kau.se

There is a new reality for business and society that comes before and after the COVID-19 pandemic. Before the pandemic the economic and social service systems were accelerated based on the trends of globalization and tech[i]nology embeded on sustainablility. After the pandemic will have a enduring impact on the way organizaton look and service delivered. This impact with globalization and technology enabling the business societal transformation. A transformation that takes place in complex environments demands the engagement of different types of stakeholders from different organizations and domains, which impact the whole service management integrates both the organization and the customer. Service Management is not only for micro and meso processes. It need also to meet global challenges of complexity and wicked problems. In this book chapter, we go back to the roots of Service Management with a societal aspect; to serve someone with the insight that business and ethics are intertwined and cannot be separated. The main focus of this chapter is to highlight on using service management for going from firm centric to a broader sustainable stakeholder view, and societal perspective for Business Societal Transformation meeting those challenges of mobilizing, managing and using resources in a more proactive way which is not limit to the boundary of the company itself. The book chapter will contribute on understanding that challenge-driven transformative change is not an ad-hoc change process. It is a vision- and goal-driven change process. Service Management for Business Societal Transformation will got a new meaning not only to handle value co-creation but also related to an open business model and a change of mindset meeting economic, social, and environmental challenges.

Anu Helkula

Eric Arnould

Christian Kowalkowski, Professor of Industrial Marketing, Department of Management and Engineering, Linköping University, Email: christian.kowalkowski@liu.se

Wolfgang Ulaga, Senior Affiliate Professor of Marketing, INSEAD Europe Campus, Marketing Area, Boulevard de Constance, 77305 Fontainebleau, France, Email: wolfgang.ulaga@insead.edu

In many markets, servitization has emerged over the past two decades as a major growth engine for companies for firms seeking to grow beyond their traditional product core. In this chapter, we first discuss the conceptual foundations of servitization and review the main driving forces underlying firms' strategic move towards service transition. We then provide a state-of-the-art overview of the servitization literature and discuss key insights from this prolific research domain. Finally, against the backdrop of growing digital transformation across many industries, we discuss key trends that will accelerate servitization in years to come and suggest avenues for promising future research in this domain.

STRANDVIK, Tore¹, HOLMLUND-RYTKÖNEN, Maria² , LÄHTEENMÄKI, Ilkka ³

Professor Emeritus of Marketing, Department of Marketing, Hanken School of Economics, Helsinki, Finland Email: tore.strandvik@hanken.fi

Professor of Marketing, Department of Marketing, Hanken School of Economics, Helsinki, Finland, Email: maria.holmlund-rytkonen@hanken.fi

Service strategizing builds on managers mental models and ongoing reflections on changes among customers, in markets and in the environment, transformed into actions. The current business model, service offerings, service processes and organisation and culture represent the organisation's established configuration of business elements that constantly have to be critically evaluated and adapted to changing circumstances. All these elements are grounded in mental models that have been implemented. Changing any of these elements require a critical analysis of assumptions made and changes occurring. Service strategizing becomes a constant process of observation, reflective thinking and implementation of changes on different levels in the organization, ranging from the individual manager to the whole organisation and even the service system.

(service strategizing, managerial sensemaking and logics, mental models, market imagination, market innovation, market shaping, resilience, business model innovation, dynamic capabilities)

Prof. Marko Kohtamäki, Strategic Business Development, University of Vaasa, P.O.Box 700, Vaasa, Finland, E-mail: marko.kohtamaki@uwasa.fi,

Offering services together or integrated with products represents an important business model innovation for manufacturing companies in business-to-business markets. However, such service infusion, or servitization, that is the transition towards product-service systems (PSS), comes with important managerial challenges on strategic, organisational, and operational levels. This chapter will introduce the issue of service infusion and discuss the different managerial challenges

Peter Magnusson, Professor, CTF, Service Research Center, Karlstad University, Sweden, Email: peter.magnusson@kau.se

Servitization is often described as a systematic and deliberate strategic process where companies are driven by a vision to ultimately offer solutions to their customers. The literature is full of processes models displaying different steps and stages companies take to become more and more servitized. But what happens in reality, what really makes a difference, and how can an organization actually reframe the business model from being based on production to serve its customers. In this chapter we report the lessons from a longitudinal study, spanning over 12 years, of a manufacturing company's journey from a pure make-to-print towards offering overall solutions. The study is based on archival material and complementary interviews of 22 key personnel. Despite not having a formal change program the company did during the twelve-year period succeed in the transition from pure manufacturing to offer service solutions. This was partly driven by the surrounding ECO-system were the company by servitization adapted to become a functional part of the system. The chapter contributes with managerial insights regarding challenges and drivers for leading a servitization transition.

Keywords: Servictization, transition, Service Eco-system, modularization

Roderick J. Brodie, Ph.D., Professor in the Department of Marketing at the University of Auckland, New Zealand., Email: r.brodie@auckland.ac.nz

Vicki Little Ph.D., Senior Lecturer in the Department of Marketing Monash University Malaysia., Email: Vicki.Little@monash.edu

Jonathan Baker Ph.D., Lecturer in International Business, Strategy & Entrepreneurship, Auckland University of Technology, Email: jonathan.baker@aut.ac.nz

Creating and delivering value is a central activity for service organizations. In this chapter, we explore the interrelated roles of different value postures within an organization. We define values postures as the various ways in which actors think about and deal with creating and delivering value to its stakeholders. We develop a conceptual framework that distinguishes systemic, strategic, functional, and front-line value postures in a service system. Cases studies illustrate the theoretical framework, and highlight the pluralistic nature of the service practices that occur in creating and delivering value.

David E. Bowen, Professor, Faculty Emeritus, Thunderbird School of Global Management, Email: david.bowen@global.thunderbird.edu

Benjamin Schneider, Professor, University of Maryland (Emeritus), Email: Benj262@outlook.com

A Service is Still All About People Mindset-managers, staff, front-line employees, and customers. If Robots are in the mix, some people decided they should be. A Service Climate Mindset, strategy-driven, shared across all organizational functions, and built on a foundation of employee engagement, all shaped by a "strong" service-oriented HRM system. A Coordination Mindset weaving together all the human and non human actors, functions and levels of the service system. A High-Performing Customers as Competitive Advantage Mindset as customers often help co-produce service and always co-create value.

Robert C. Ford, PhD, Professor of Management Emeritus, Department of Management

College of Business Administration, University of Central Florida

Email: rford@bus.ucf.edu

Dr. David Solnet, Associate Professor, University of Queensland, Email: David.solnet@uq.edu.au

Professor Mahesh Subramony, Professor of Management and Industrial Psychology, Northern Illinois University , Email: msubramony@niu.edu

Ms Maria Golubovskaya, PhD Candidate, UQ Business School (https://graduate-school.uq.edu.au/profile/412/maria), Email: s4281546@student.uq.edu.au

This chapter discusses how contemporary service management scholarship addresses changes in managerial practices that define the structure and create the organizational culture that optimizes the alignment of a customer service oriented strategy with the human resources and guest expectations. This focus includes how management can find, train and engage a new generation of full and part time workers and managers that can effectively co-produce with customers to co-create value in the service ecosystem while adapting to the challenges of blending technology with human contact to meet or exceed changing customer expectations.

Michael Ehret, Reader in Technology Management at Nottingham Business School, Nottingham Trent University, United Kingdom, Email: michael.ehret@ntu.ac.uk

Jochen Wirtz, Vice-Dean Graduate Studies and Professor of Marketing at the National University of Singapore, Email: jochen@nus.edu.sg

Service businesses offer the particular value proposition of providing benefits (e.g. transportation, office space or information), while relieving users from the burdens that come with ownership of complex and valuable assets, such as vehicles, real estate, or data centers. In the sharing economy, unicorn startups like WeWork or Uber have betted multiple billions of dollars on nonownership value propositions with disappointing financial results. This highlights a substantial gap apparent in service-research and management: The mere shifting of ownership titles does not offer a sustainable value propositions. However, a closer look reveals that service firms can and do reach sustainable value propositions from shifts of ownership. For example, cloud computing proves transformative for both, clients and providers of nonownership services. For example, it offers start-ups world class professional data infrastructure with high speed scalability, while turning providers like Amazon Web Services or Microsoft into top investment leagues. In this chapter we take an ecosystem view of ownership and argue that ownership needs to be attuned with organizing principles of eco-systems in order to unveil benefits. We propose smart-ownership as an organizing principle for directing heterogeneous bundles of assets towards service-purposes. We hold that the key challenges of service firms is to configure the physical, intellectual and social dimensions of the service-asset base with a diverse set of corporate and human actors. Two innovations are proving transformative for service management. First, information technology, in particular its ubiquitous computing approaches, empowers a growing range of service actors to control physical environments towards service benefits. Second, the social innovation of networked platforms enables the orchestration of multiple human and organizational actors. In summary, smart ownership entails the orchestration of technical with social innovation, across physical, intellectual and social levels. Smart ownership seeks to establish complementarities between people and assets, or organizations and human actors, rather than substituting ownership. In service research, ecosystem approaches offer both, conceptual lenses and intellectual tools, such as agent-based modelling for navigating ownership approaches and strategic service management.

Jonas Holmqvist, Kedge Business School - Bordeaux, jonas.holmqvist@kedgebs.com

Jochen Wirtz, National University of Singapore - Singapore, jochen@nus.edu.sg

Martin P. Fritze, University of Cologne - Cologne, fritze@wiso.uni-koeln.de

Our idea is to extend on our recent article Luxury Services in JOSM. That conceptual article focused on identifying and delineating luxury services. In this book chapter, keeping with the overall idea of the handbook, we will provide several actual insights from leading luxury service providers - this will include both companies with luxury services as their core offering (examples from top restaurants and hotels) and companies selling luxury products but of course need to offer stellar service (examples from sellers of luxury cars, luxury yachts and luxury fashion).

We want our chapter to be relevant for both service researchers and managers; for researchers, we extend our treatment of multifaceted forms of exclusivity characterizing luxury services. For managers, we provide both the practical insights from several leading luxury companies and some actionable advice of how to manage services in the luxury sector.

Maria Colurcio, Phd, Professor of Marketing University Magna Graecia of Catanzaro UMG - Italy , Email: mariacolurcio@unicz.it

Angela Caridà, Phd, Senior Research Fellow of Strategic Management University Magna Graecia of Catanzaro UMG - Italy, Email: angela.carida@unicz.it

Monia Melia, Phd, Adjunt Professor of Marketing University Magna Graecia of Catanzaro UMG - Italy, Email: monia.melia@unicz.it

Value creation is at the top of business priorities in terms of both economic and financial value, reputational value and market value. The need for companies to create value for a wider group of actors, even those not directly affected by business activities, is becoming increasingly urgent, also in the light of the UN 2030 agenda. It seems essential for the sustainable service management to identify practices of involvement/engagement of actors for the creation of value according a mutual perspective. The objective of the chapter is to provide concepts and methods for the development of both managerial culture and practices oriented to the integration of resources and, therefore, the value co-creation through the service.

Karla Cabrera, PhD candidate, Tecnologico de Monterrey, EGADE Business School, Mexico, Email: A00795622@itesm.mx

Javier Reynoso, Professor, Tecnologico de Monterrey, EGADE Business School, Mexico, Email: jreynoso@tec.mx

In recent years, business resilience has gained interest from both, academics and practitioners, aiming to understand how organizations deal with adversity. Resilience research often proposes that resilience is linked to the ability to use internal and external resources to create enabling conditions to overcome hardships, in which availability of resources is taken for granted. However, there is a lack of research about how resilience is developed in scarcity. Hence, exploring how service organizations operating in complex settings, such as the BoP, use atypical resources and create unusual ways of doing business to face adversity might provide valuable insights about resilience in resource-constrained environments.

Per Kristensson, Professor at CTF, Service Research Center, Karlstad University, Sweden, Email: Per.kristensson@kau.se

The chapter intends to give an overview of essential behavioral change theories than can be used, applied, for managerial purposes. These theories imply a demarcation from theories that is directed towards individual change, and theories that are used to instigate behavior change for one's own purpose. On the contrary, the chapter contains theories that informs managers, and researchers, about theories that can change groups of people in a certain desired direction.

The placement of research on behavioral change follows previous streams of research in service management where service quality, service development and service innovation has been conducted. This research should be understood as a piece that organizations, managers, can be informed about when the service offering cannot be changed, and instead there is a need to change the behavior of the customer. The behavior change theories can equally well be applied to employees within the organization.

Varsha Jain, professor of integrated marketing communication at Management Institut of Communication Ahmedabad (MICA), Institute for strategic marketing and communicatioion skills, India.

Email: varsha.jain@micamail.in

Fan Xiuching, professor of marketing and service management, School of Managment, Fudan University, Shanghai, China

Email: xcfan@fudan.edu.cn

Service profit chain revisited, National culture, corporate culture, and HR management practice, Leadership with Chinese characteristics, Two cases: Haidilao Hot-Pot Restaurant and Sea-view Garden Hotel

Laurel Anderson, associat professor of marketing, W. P. Carey School of Business, Arizona State University, Tempe, Arizona, US

Email: Laurel.Anderson@asu.edu

Transformative Service Research (TSR) is based on efforts to create uplifting changes in the well-being of individuals, communities and ecosystems through services. Because services are so ubiquitous, they to a large extent, structure the world in which we live. To truly lead and have a substantial impact on well-being, we must look beyond just dyadic interactions to social structures that services both create and are embedded in. Research shows that societies with a greater sense of social inclusion have better health outcomes and well-being. This paper provides an overview of TSR and then looks at the important TSR direction of creating this sense of mutuality ("we are in this together") through service.

Peer Jacob Svenkerud, professor of organization comminication, Inland Norway University of Applied Sciences, Larry Browning, professor, University of Arizona, US

Email: peer.svenkerud@inn.no

Dr. Kaisa Koskela-Huotari, CTF Service Research Center, Karlstad University, Email: kaisa.koskela-huotari@kau.se

Dr. Josina Vink, Institute of Design, Oslo School of Architecture and Design, Email: Josina.Vink@aho.no

Service design and service innovation are important and widely researched areas of service management. Recently, scholars have been embracing a more systemic understanding of the outcomes and processes underpinning both design and innovation in the service context. The purpose of this chapter is to provide an overview of the systemic turn in service design and innovation and its key implications to both theory and managerial practice. The systemic understanding that has emerged highlights the influence of institutionalized social structures on people while they are designing and innovating, and positions such social structures as core materials of all design and the source of both momentum and resistance in innovation efforts. This approach also suggests that rather than designing and innovating systems that are external to them, people are part of the very systems they are trying to influence, which brings forth a new set of managerial challenges for service organizations.

Ingo Oswald Karpen, Professor of Business and Design, RMIT University, Graduate School of Business and Law, RMIT University, Australia, Email: Ingo.karpen@rmit.edu.au

Josina Vink, Associate Professor of Service Design, Institute of Design, Oslo School of Architecture and Design, Norway, Email: Josina.vink@aho.no

Jakob Trischler, Assistant Professor, Karlstad University, CTF Service Research Centre, Sweden, Email: Jakob.trischler@kau.se

.Service design plays an ever-increasing role for innovation and ecosystem change, with growing adoption by businesses, governments and communities

.Over the recent decade, service design has matured from re-imagining micro-level touchpoints and user experiences, to facilitating and enhancing macro-level change and ecosystem transformation

.This expanded scope of service design necessitates a number of strategic practices to support designing at this scale and working intentionally with growing levels of complexity

.We highlight a number of promising practices when doing service design at scale, contextualized by examples

.To ground this chapter and strengthen these practices, we draw on foundational research on (service) design as well as systems thinking literature

Dominik Mahr, Professor of Digital Innovation and Marketing, Maastricht University, The Netherlands

Paul van Fenema, Professor of Military Logistics & Information Management, Netherlands Defence Academy, The Netherlands

Organizations collectively explore new service models to servitize their offering, take advantage of digital capabilities such as Artificial Intelligence and transform their market place interactions. This chapter explores industry networks and embedded organizations with the aim to propose how organizations design novel services in these networks. Our iterative process model takes into account the independencies between the organizations by first capturing the network value proposition before designing a service value proposition that in turn may alter the network collaboration. The process facilitates the orchestration of closed and open innovation models and includes scripts for structuring the design of data science services