Externalising services : walking a tightrope between industrial and service logics

Abstract: The externalisation of services and the adoption of service logic are topics that have received increasing attention recently, both among academics and practitioners. Whereas the adoption of service logic is associated with approaching the customer through various sorts of services and solutions, the externalisation essentially means leaving part of the customer interface to an external firm. However, empirical research focusing on such externalisation projects is lacking. This thesis addresses this gap by exploring problems encountered during the externalisation of basic product services at an industrial firm that is also adopting service logic.The thesis integrates several cross-sectional, retrospective, and longitudinal case studies. The studies were conducted at different point in time over more than three years at SysCo – the fictitious name of an industrial firm adopting service logic and externalising basic services, and also the employer of the author of this thesis at the time of the study and many years before. The thesis consists of five papers and an integrated synthesis, discussion and extension.One conclusion of the research is that unless the change approach and the problems encountered during the externalisation are taken seriously, the externalisation may be difficult to effectuate. A fundamental reason for this is that the simultaneous and complex adoption of service logic influences the externalisation and makes it more difficult to plan and carry out in a linear and top-down manner.The thesis contributes with knowledge about externalisation problems and their sources. Externalising services may be likened with walking a tightrope between industrial and service logics. The thesis contains advice that may guide managers responsible for such balancing acts.