Solution Provider's Microfoundations in the Development of Product-Service Innovations

Purpose: The present paper was set out to study how a solution provider manages organisational processes and routines to support product-service system (PSS) development. Design/Methodology/Approach: This single-case study investigates in-depth one large international solution provider to understand the detailed microprocesses and routines shaping the microfoundations of product-service system development. Findings: The study suggests that technology companies should consider creating a flexible structure to unleash many types of innovations instead of establishing tailored models to foster different innovation types and avoid falling into the exploitation trap of using innovation to only support the existing business without aiming for new explorative openings. Originality/Value: The present study opens up the black-box of new product-service innovation (PSI) development model.