Skip to main content
SpringerLink
Log in

The Effect of Service Modularity on Flexibility in the Digital Age – An Investigation in the B2B Context

  • Conference paper
  • First Online:
Exploring Service Science (IESS 2018)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 331))

Included in the following conference series:

  • 1631 Accesses

Abstract

The goal of this study is to investigate the moderating role of digitalization on the well-known positive effect of service modularity on service flexibility. This is important since research findings on the role of service digitalization in this context are scarce and still equivocal. Following research on digital business strategy, we propose and provide empirical evidence that service digitalization positively moderates the effect of service modularization on service flexibility. By doing this, we furthermore enhance this research by considering service digitalization as a continuum ranging from low (i.e., services mainly provided by personnel) to high (i.e., services mainly provided by IT). In addition, we show that service flexibility has a positive effect on service value which is an important factor for firms’ market success. Hereby we aim to contribute to research on service modularization and technology management. Our research is based on survey-data of 147 companies offering IT services in the B2B context and is analyzed using the partial least square method.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Notes

  1. 1.

    Due to the significantly positive effect between service modularization and service value (cf., Fig. 1), we additionally can confirm a complementary mediation [48].

References

  1. Xue, L., Zhang, C., Ling, H., Zhao, X.: Risk mitigation in supply chain digitization: system modularity and information technology governance. J. Manag. Inf. Syst. 30, 325–352 (2013)

    Article  Google Scholar 

  2. Froehle, C.M., Roth, A.V.: New measurement scales for evaluating perceptions of the technology-mediated customer service experience. J. Oper. Manag. 22, 1–21 (2004)

    Article  Google Scholar 

  3. Böhmann, T., Junginger, M., Krcmar, H.: Modular service architectures: a concept and method for engineering it services. In: 36th Annual Hawaii International Conference on System Sciences, 10–19 (2003)

    Google Scholar 

  4. Nambisan, S., Lyytinen, K., Majchrzak, A., Song, M.: Digital innovation management: reinventing innovation management research in a digital world. MIS Q. 41, 223–238 (2017)

    Article  Google Scholar 

  5. Scherer, A., Wunderlich, N.V., von Wangenheim, F.: The value of self-service: long-term effects of technology-based self-service usage on customer retention. MIS Q. 39, 177–200 (2015)

    Article  Google Scholar 

  6. Baldwin, C.Y., Clark, K.B.: Managing in an age of modularity. Harvard Bus. Rev. 75, 84–93 (1997)

    Google Scholar 

  7. Vickery, S.K., Koufteros, X., Dröge, C., Calantone, R.: Product modularity, process modularity, and new product introduction performance: does complexity matter? Prod. Oper. Manag. 25, 751–770 (2016)

    Article  Google Scholar 

  8. Voss, C.A., Hsuan, J.: Service architecture and modularity. Decis. Sci. 40, 541–569 (2009)

    Article  Google Scholar 

  9. Brax, S.A., Bask, A., Hsuan, J., Voss, C.: Service modularity and architecture – an overview and research agenda. Int. J. Oper. Prod. Manag. 37, 686–702 (2017)

    Article  Google Scholar 

  10. Dörbecker, R., Böhmann, T.: The concept and effects of service modularity – a literature review. In: 46th Annual Hawaii International Conference on System Sciences (HICSS-46), pp. 1357–1366 (2013)

    Google Scholar 

  11. Fixson, S.K.: Modularity and commonality research: past developments and future opportunities. Concurr. Eng. 15, 85–111 (2007)

    Article  Google Scholar 

  12. Rahikka, E., Ulkuniemi, P., Pekkarinen, S.: Developing the value perception of the business customer through service modularity. J. Bus. Ind. Mark. 26, 357–367 (2011)

    Article  Google Scholar 

  13. Martin, B., Stephan, K.: Providing a method for composing modular B2B services. J. Bus. Ind. Mark. 26, 320–331 (2011)

    Article  Google Scholar 

  14. Nelson, R.R., Todd, P.A., Wixom, B.H.: Antecedents of information and system quality: an empirical examination within the context of data warehousing. J. Manag. Inf. Syst. 21, 199–235 (2005)

    Article  Google Scholar 

  15. Moon, S.K., Shu, J., Simpson, T.W., Kumara, S.R.T.: A module-based service model for mass customization: service family design. IIE Trans. 43, 153–163 (2010)

    Article  Google Scholar 

  16. Lewis, M.O., Mathiassen, L., Rai, A.: Scalable growth in IT-enabled service provisioning: a sensemaking perspective. Eur. J. Inf. Syst. 20, 285–302 (2011)

    Article  Google Scholar 

  17. Yoo, Y.: The Tables have turned: how can the information systems field contribute to technology and innovation management research? J. Assoc. Inf. Syst. 14, 227–236 (2013)

    Google Scholar 

  18. Bharadwaj, A., El Sawy, O.A., Pavlou, P.A., Venkatraman, N.: Digital business strategy: toward a next generation of insights. MIS Q. 37, 471–482 (2013)

    Article  Google Scholar 

  19. Stock, R.M., Zacharias, N.A.: Patterns and performance outcomes of innovation orientation. J. Acad. Mark. Sci. 39, 870–888 (2011)

    Article  Google Scholar 

  20. Chun-Hsien, L., Chu-Ching, W.: Formulating service business strategies with integrative services model from customer and provider perspectives. Eur. J. Mark. 44, 1500–1527 (2010)

    Article  Google Scholar 

  21. Iman, N.: Modularity matters: a critical review and synthesis of service modularity. Int. J. Qual. Serv. Sci. 8, 38–52 (2016)

    Google Scholar 

  22. Tuunanen, T., Cassab, H.: Service process modularization: reuse versus variation in service extensions. J. Serv. Res. 14, 340–354 (2011)

    Article  Google Scholar 

  23. Sundbo, J.: The service economy: standardisation or customisation? Serv. Ind. J. 22, 93–116 (2002)

    Article  Google Scholar 

  24. Salvador, F.: Toward a product system modularity construct: literature review and reconceptualization. IEEE Trans. Eng. Manag. 54, 219–240 (2007)

    Article  Google Scholar 

  25. Yoo, Y., Henfridsson, O., Lyytinen, K.: Research commentary—the new organizing logic of digital innovation: an agenda for information systems research. Inf. Syst. Res. 21, 724–735 (2010)

    Article  Google Scholar 

  26. Tuunanen, T., Bask, A., Merisalo-Rantanen, H.: Typology for modular service design: review of literature. Int. J. Serv. Sci. Manag. Eng. Technol. 3, 99–112 (2012)

    Google Scholar 

  27. Bask, A., Merisalo-Rantanen, H., Tuunanen, T.: Developing a modular service architecture for E-store supply chains: the small- and medium-sized enterprise perspective. Serv. Sci. 6, 251–273 (2014)

    Article  Google Scholar 

  28. Sambamurthy, V., Bharadwaj, A., Grover, V.: Shaping agility through digital options: reconceptualizing the role of information technology in contemporary firms. MIS Q. 27, 237–263 (2003)

    Article  Google Scholar 

  29. Henfridsson, O., Mathiassen, L., Svahn, F.: Managing technological change in the digital age: the role of architectural frames. J. Inf. Technol. 29, 27–43 (2014)

    Article  Google Scholar 

  30. Chan, K.W., Yim, C.K., Lam, S.S.K.: Is customer participation in value creation a double-edged sword? Evidence from professional financial services across cultures. J. Mark. 74, 48–64 (2010)

    Article  Google Scholar 

  31. Tiwana, A., Konsynski, B.: Complementarities between organizational IT architecture and governance structure. Inf. Syst. Res. 21, 288–304 (2009)

    Article  Google Scholar 

  32. Kumar, N., Stern, L.W., Anderson, J.C.: Conducting interorganizational research using key informants. Acad. Manag. J. 36, 1633–1651 (1993)

    Google Scholar 

  33. Bergkvist, L.I., Rossiter, J.R.: The predictive validity of multiple-item versus single-item measures of the same constructs. J. Mark. Res. 44, 175–184 (2007)

    Article  Google Scholar 

  34. Rossiter, J.R.: The C-Oar-Se procedure for scale development in marketing. Int. J. Res. Mark. 19, 305–335 (2002)

    Article  Google Scholar 

  35. Hair, J.F., Ringle, C.M., Sarstedt, M.: Pls-Sem: indeed a silver bullet. J. Mark. Theory Pract. 19, 139–152 (2011)

    Article  Google Scholar 

  36. Hair, J.F., Hult, G.T.M., Ringle, C., Sarstedt, M.: A Primer on Partial Least Squares Structural Equation Modeling (Pls-Sem). Sage Publications, Los Angeles (2017)

    MATH  Google Scholar 

  37. Podsakoff, P.M., MacKenzie, S.B., Lee, J.-Y., Podsakoff, N.P.: Common method biases in behavioral research: a critical review of the literature and recommended remedies. J. Appl. Psychol. 88, 879–903 (2003)

    Article  Google Scholar 

  38. Bagozzi, R.P., Yi, Y., Phillips, L.W.: Assessing construct validity in organizational research. Adm. Sci. Q. 36, 421–458 (1991)

    Article  Google Scholar 

  39. Bagozzi, R.P., Yi, Y.: Specification, evaluation, and interpretation of structural equation models. J. Acad. Mark. Sci. 40, 8–34 (2012)

    Article  Google Scholar 

  40. Fornell, C., Larcker, D.F.: Evaluating structural equation models with unobservable variables and measurement error. J. Mark. Res. 18, 39–50 (1981)

    Article  Google Scholar 

  41. Henseler, J., Ringle, C.M., Sarstedt, M.: A new criterion for assessing discriminant validity in variance-based structural equation modeling. J. Acad. Mark. Sci. 43, 115–135 (2015)

    Article  Google Scholar 

  42. Lindell, M.K., Whitney, D.J.: Accounting for common method variance in cross-sectional research designs. J. Appl. Psychol. 86, 114–121 (2001)

    Article  Google Scholar 

  43. Bennett Thatcher, J., Perrewé, P.L.: An empirical examination of individual traits as antecedents to computer anxiety and computer self-efficacy. MIS Q. 26, 381–396 (2002)

    Article  Google Scholar 

  44. Henseler, J., Chin, W.W.: A comparison of approaches for the analysis of interaction effects between latent variables using partial least squares path modeling. Struct. Equ. Model.: Multidiscip. J. 17, 82–109 (2010)

    Article  MathSciNet  Google Scholar 

  45. Sharma, S., Durand, R.M., Gur-Arie, O.: Identification and analysis of moderator variables. J. Mark. Res. 18, 291–300 (1981)

    Article  Google Scholar 

  46. Henseler, J., Fassott, G.: Testing moderating effects in PLS path models: an illustration of available procedures. In: Esposito, Vinzi V., Chin, W., Henseler, J., Wang, H. (eds.) Handbook of Partial Least Squares, pp. 713–735. Springer, Heidelberg (2010). https://doi.org/10.1007/978-3-540-32827-8_31

    Chapter  Google Scholar 

  47. Kenny, D.A.: http://davidakenny.net/cm/moderation.htm. Accessed 02 Nov 2017

  48. Zhao, X., Lynch, J.G., Chen, Q.: Reconsidering Baron and Kenny: myths and truths about mediation analysis. J. Consum. Res. 37, 197–206 (2010)

    Article  Google Scholar 

  49. Benaroch, M., Lichtenstein, Y., Robinson, K.: Real options in information technology risk management: an empirical validation of risk-option relationships. MIS Q. 30, 827–864 (2006)

    Article  Google Scholar 

  50. Demirkan, I., Deeds, D.L., Demirkan, S.: Exploring the role of network characteristics, knowledge quality, and inertia on the evolution of scientific networks. J. Manag. 39, 1462–1489 (2013)

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of Passau, Innstraße 41, 94032, Passau, Germany

    Torben Stoffer & Thomas Widjaja

  2. TU Darmstadt, Karolinenplatz 5, 64289, Darmstadt, Germany

    Nicolas Zacharias

Authors
  1. Torben Stoffer
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Thomas Widjaja
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Nicolas Zacharias
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Torben Stoffer .

Editor information

Editors and Affiliations

  1. Karlsruhe Service Research Institute (KSRI), Karlsruhe Institute of Technology, Karlsruhe, Germany

    Gerhard Satzger

  2. INESC TEC, Universidade do Porto, Porto, Portugal

    Lia Patrício

  3. Institute for Manufacturing, University of Cambridge, Cambridge, UK

    Mohamed Zaki

  4. Karlsruhe Service Research Institute (KSRI), Karlsruhe Institute of Technology, Karlsruhe, Germany

    Niklas Kühl

  5. Karlsruhe Service Research Institute (KSRI), Karlsruhe Institute of Technology, Karlsruhe, Germany

    Peter Hottum

Appendix

Appendix

See Tables 1, 2, and 3.

Table 1. Measurement Items with respective loadings for the main constructs.
Full size table
Table 2. Indices for the assessment of internal consistency reliability.
Full size table
Table 3. Correlations and Indices for the assessment of discriminant validity.
Full size table

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Stoffer, T., Widjaja, T., Zacharias, N. (2018). The Effect of Service Modularity on Flexibility in the Digital Age – An Investigation in the B2B Context. In: Satzger, G., Patrício, L., Zaki, M., Kühl, N., Hottum, P. (eds) Exploring Service Science. IESS 2018. Lecture Notes in Business Information Processing, vol 331. Springer, Cham. https://doi.org/10.1007/978-3-030-00713-3_1

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-00713-3_1

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-00712-6

  • Online ISBN: 978-3-030-00713-3

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics

Search

Navigation