The Reverse Product Cycle Model Revisited: Co-produced solutions in knowledge-intensive business services

Abstract: Services and innovation are the drivers of today’s economy, yet, there is a lack on academic literature on what matter the interactions between these two forces. On that sense, Barras, in 1986, established one of the most representative models regarding innovation within service firms. The “Reverse Product Cycle” (RPC) argue that service firms, trigged by IT advancements, would follow an opposite innovation evolution if compared to the classic manufactured view of novelty progress. Besides representing an important breakthrough on the services differentiation from the predominant industry view, it was replete of problematic that are now reinforced by the present high dynamic environment. On that present scenario, the role knowledge-intensive business services (KIBS) play is of crucial importance to innovation dissemination within a diversity of industries. It features are intrinsically related to tailored co-produced solutions to specific clients requirements that, by the case study of an ongoing KIBS shared solution development, seems to bring back the innovation pattern defended by the RPC model. The present study aims to analyze this hypothesis and revisit the RPC model through the optics of current KIBS innovation process.