Expanding International Business Via Smart Services: Insights From ‘Hidden Champions’ in the Machine Tool Industry
International Business in the Information and Digital Age
ISBN: 978-1-78756-326-1, eISBN: 978-1-78756-325-4
Publication date: 10 December 2018
Abstract
This study explores whether machinery firms with a ‘hidden champions’ profile leverage Industry 4.0 practices to roll out smart services; whether this allows them to get a firm grip on their installed base; and whether it allows them to expand their international (service) business. The research is conducted based on exploratory, multiple-case study methods.
The author finds that the implementation of smart services can improve a machine tool builder’s hold on its installed base and expand the scope of its international (service) business. However, the study also finds that the ability to capitalise on this potential depends on a series of moderating variables. The study also concludes that there is a risk that smart services do not unlock a strong willingness-to-pay among potential customers.
It, therefore, calls into question several conventional wisdoms, such as the possibilities that Industry 4.0 offers for suppliers operating in business-to-business markets, and the receptiveness to smart services by buyers in such markets. Finally, it highlights the specific liabilities faced by hidden champions with regard to expanding their smart services business.
The chapter provides practical insights into the hurdles that industrial suppliers must overcome in their attempts to achieve uptake of smart services by customers, particularly within a cross-border context.
Keywords
Acknowledgements
Acknowledgement
This work was supported by the Urban Innovative Actions grant UIA01-060 Bilbao As Fabrik.
Citation
Kamp, B. (2018), "Expanding International Business Via Smart Services: Insights From ‘Hidden Champions’ in the Machine Tool Industry", van Tulder, R., Verbeke, A. and Piscitello, L. (Ed.) International Business in the Information and Digital Age (Progress in International Business Research, Vol. 13), Emerald Publishing Limited, Leeds, pp. 273-293. https://doi.org/10.1108/S1745-886220180000013012
Publisher
:Emerald Publishing Limited
Copyright © 2019 Emerald Publishing Limited