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.

Additional Metadata
Persistent URL dx.doi.org/10.1109/HICSS.2012.563
Conference 2012 45th Hawaii International Conference on System Sciences, HICSS 2012
Citation
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