Our analysis of data from 179 software firms reveals how they react to industry-wide shifts including increasing service-intensity, changing technologies and the growing openness of innovation. Firms' strategic responses to these shifts explain a significant amount of their business model performance. Service orientation is connected with "customer proximity" strategy, which has a greater positive effect on the firms' short-term financial performance than on market performance. Firms' engagement in open innovation fosters their "product uniformity" strategy, which influences positively on their long-haul market performance. Technological capabilities and response to technology changes drive customer- and productfocused service development. They result in positive financial and market performance effects. Firms in service industries benefit of our results in designing and managing their service business models.

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Persistent URL dx.doi.org/10.1109/HICSS.2012.563
Conference 2012 45th Hawaii International Conference on System Sciences, HICSS 2012
Rajala, R. (Risto), & Westerlund, M. (2012). The effects of service orientation, technology orientation and open innovation on the performance of software-intensive service businesses. In Proceedings of the Annual Hawaii International Conference on System Sciences (pp. 1532–1541). doi:10.1109/HICSS.2012.563