Collaboration as a mechanism for servitization in the automotive industry: The case of China and Sweden

Abstract

An increasing amount of companies have starting to embrace a transition from focus purely on products to provide service offerings to customers, also termed as servitization. The automotive industry is one example which has identified the potential of creating value through services. It is suggested by literature that services should be developed by several actors, socalled co-creation. The process of developing new initiatives has although been considered as expensive, resource-intensive and connected with risks. To open up boundaries between companies is perceived as a way to improve the process for new initiatives. There is although a lack of research regarding how companies can collaborate in order to develop services in a traditionally product-focused industry. This study thus aims to examine how collaborations are used as a mechanism for developing services in the automotive industry. This was investigated through a qualitative strategy, and more specifically with the means of multiple-case study together with a comparative perspective between China and Sweden. Findings show that there is an absence of a clear structure regarding service development, such as formal processes and decision paths. Moreover, collaborations concerning service development are increasing across boundaries and are perceived as essential for future success. The collaborative perspective between China and Sweden reveals company-specific rather than country-specific differences.