Widening the Perspective on Industrial Innovation: A Service-Dominant-Logic Approach

The servitization of industry has progressed from services as add-ons to services as solutions. Today, industrial innovation needs an even broader perspective that moves towards service-dominant logic. This logic emphasizes value co-creation in actor-to-actor networks and requires new organizational structures and practices in industry. The article presents the case of a Nordic manufacturer of arc welding equipment that has gone through an extensive development program to become more customer and service oriented. An innovative offering created during the program is analyzed as an example in order to gain deeper insight about the concrete application of service-dominant logic in business. In addition to the outcome perspective, the article discusses the implications of the service-dominant logic for innovation practices. The article illustrates the behaviour of cutting-edge servitizing manufacturers and argues that similar behaviour can be expected to become a necessity in all industrial companies with large structural changes.