Looking at the Two Sides of the Equation - How Servitisation Affects the Sustainability-oriented Innovation Adoption Dilemma

Abstract: Research question: How does servitisation affect the adoption of sustainability-oriented innovations (SOIs)? A qualitative study on the role of servitisation on barriers and drivers for SOI adoption. Methodology: The methodological framework for this research is a qualitative multiple case study following an abductive approach. The agricultural industry was used as an empirical tool to conduct the research and generalise the findings to contexts with similar characteristics. Semi-structured interviews with SOI adopters and providers constitute the main source for data collection. The data analysis and creation of grounded theory followed the recommendations of Gioia et al. (2012) yet leaving room for adaptation to the needs of this research. Theoretical perspectives: This study builds the bridge between the two research areas of ‘SOI adoption’ and ‘servitisation’, drawing on SOI (also: sustainable-, eco-, green- and environmental-innovation), diffusion of innovations, and servitisation literature. This, with the aim to outline SOI adoption barriers and drivers, and service attributes potentially influencing the adoption process. Conclusions: SOI faces slower market adoption than conventional innovation. This thesis contributes to existing literature by studying the intersection between two expanding business concepts, namely ‘servitisation’ (1) as a potential approach to increase ‘SOI adoption’ (2). Beneficial service characteristics have shown to increase customer value by overcoming barriers and reinforcing drivers for SOI adoption (e.g. ‘financial model’ of services reducing investment costs). Nonetheless, hindering servitisation factors, revolving around reluctance due to organisational change, need to be considered in the transition towards adopting services. Ultimately, this study increases understanding of SOI adoption to enhance its market success, and therefore contributes to the transition towards sustainable development.