Solution business fitness: measuring and managing across business logics

What is it about?

Firms transforming from a product supplier into a solution provider need to develop entirely new organizational capabilities or re-configure existing ones. This article conceptualizes Solution Business Fitness as a construct that captures comprehensively the capabilities necessary for a firm to operate successfully in solution business. The study investigates how the construct can be measured, empirically validates solution-business specific capabilities as antecedents of firm performance, and shows how different business logics applied by firms give capabilities different importance and impact. Managerially, firms can use the developed measurement tool to assess their current Solution Business Fitness and define a desired target status. When improving the Solution Business Fitness, managers should pay special attention to the business logic of their firm as the required capabilities are context-dependent.

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