Service-Based Bioeconomy—Multilevel Perspective to Assess the Evolving Bioeconomy with a Service Lens

  • Päivi Pelli
  • Jyrki Kangas
  • Jouni Pykäläinen
Part of the World Sustainability Series book series (WSUSE)


Increasing role of services is often described as the increased share of services sector employment and value added in economy, although research on services addresses also the multiple ways how services are embedded in socio-economic processes and innovation. Integration of products and services is perceived with potential to improve efficiency in manufacturing as well as sustainability of operations. Improving technologies provide new means to organize production and define how value is created, distributed and captured. This paper seeks to assess the blurring borderline between manufacturing and services and its impact on the primary and processing industries within the evolving bioeconomy conceptualizations. An analytical framework is presented based on service research in the marketing discipline and the multi-level perspective to socio-technical changes; ‘service-based bioeconomy’ highlights the role that the further downstream industries have in defining the future bioeconomy. The analytical framework is illustrated in an empirical study context of the Finnish bioeconomy strategy with three mini-cases where the value propositions of traditional forest-based industries, emerging bio-industries and their further downstream customers are analyzed: biorefineries’ supply to sustainable textiles, wood-based solutions for sustainable built environment, and forestry solutions for biomass production and beyond.


Bioeconomy Services Servitization Socio-technical change Finnish bioeconomy strategy 


  1. Anderson JC, Narus JA, van Rossum W (2006) Customer value propositions in business markets. Harvard Bus Rev 84(3):90–99Google Scholar
  2. Antikainen R, Lehtoranta S, Luoma P, Berghäll E, Valve E, Miller T, Larvus L, Pohjola J, Laturi J, Lintunen J, Tamminen S, Seppälä J, Uusivuori J (2016) Biotalous ja cleantech Suomessa – strategioiden arviointi ja toimenpidesuositukset (Bioeconomy and cleantech in Finland—Assessment of Strategies and development suggestions, in Finnish). Publications of the Govenrment’s Analysis, Assessment and Research Activities 51/2016Google Scholar
  3. Baines TS, Lightfoot HW, Benedettini O, Kay JM (2009) The servitization of manufacturing: a review of literature and reflection on future challenges. J Manuf Technol Manage 20(5):547–567CrossRefGoogle Scholar
  4. Bauer F, Coenen L, Hansen T, McCormick K, Palgan VY (2016) Technological innovation systems for biorefineries: a review of the literature. Biofuels Bioprod Biorefin 11:534–548CrossRefGoogle Scholar
  5. Bitner MJ, Brown SW (2008) The service imperative. Bus Horiz 51(1):39–46CrossRefGoogle Scholar
  6. Boehm M, Thomas O (2013) Looking beyond the rim of one’s teacup: a multidisciplinary literature review of product-service systems in information systems, business management, and engineering & design. J Clean Prod 51:245–260CrossRefGoogle Scholar
  7. Bosman R, Rotmans J (2016) Transition governance towards a bioeconomy: a comparison of Finland and The Netherlands. Sustainability 8:1017CrossRefGoogle Scholar
  8. Bryson JR, Daniels PW (2010) Service worlds, the services duality and the rise of the manuservice economy. In: Maglio PP, Kieliszewski CA, Spohrer JC (eds) Handbook of service science. Springer, New York, pp 79–104Google Scholar
  9. Bugge MM, Hansen T, Klitkou A (2016) What is the bioeconomy? A review of the literature. Sustainability 8:691CrossRefGoogle Scholar
  10. Chang Y-C, Miles I, Hung S-H (2014) Introduction to special issue: managing technology-service convergence in Service Economy 3.0. Technovation 34:499–504CrossRefGoogle Scholar
  11. Chesbrough H, Spohrer J (2006) A research manifesto for services science. Commun ACM 49(7):35–40CrossRefGoogle Scholar
  12. Coombs R, Miles I (2000) Innovation, measurement and services: the new problematique. In: Innovation systems in the service economy. Economics of science, technology and innovation, vol 18, pp 85–103Google Scholar
  13. Cova B, Salle R (2008) Marketing solutions in accordance with the S-D logic: co-creating value with customer network actors. Ind Mark Manage 37:270–277CrossRefGoogle Scholar
  14. De Backer K, Desnoyers-James I, Moussiegt L (2015) Manufacturing or services—that is (not) the question: the role of manufacturing and services in OECD economies. OECD Science, Technology and Industry Policy Papers, No. 19Google Scholar
  15. EC (2012) Innovating for sustainable growth: a bioeconomy for Europe. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions COM(2012)60 final, Brussels, 13 Feb 2012Google Scholar
  16. Efken J, Walter D, Kreins P, Knechtd M (2016) Measuring the importance of the bioeconomy in Germany: concept and illustration. NJAS – Wageningen J Life Sci 77:9–17Google Scholar
  17. Elzen B, Geels FW, Green K (eds) (2004) System innovation and the transition to sustainability: theory, evidence and policy. Edward Elgar CheltenhamGoogle Scholar
  18. Gallouj F, Savona M (2009) Innovation in services: a review of the debate and a research agenda. J Evol Econ 19:149–172CrossRefGoogle Scholar
  19. Gallouj F, Weber KM, Stare M, Rubalcaba L (2015) The futures of the service economy in Europe: a foresight analysis. Technol Forecast Soc Chang 94:80–96CrossRefGoogle Scholar
  20. Geels FW (2002) Technological transitions as evolutionary reconfiguration processes: a multi-level perspective and a case study. Res Policy 31:1257–1274CrossRefGoogle Scholar
  21. Geels FW (2005) Processes and patterns in transitions and system innovations: refining the co-evolutionary multi-level perspective. Technol Forecast Soc Chang 72:681–696CrossRefGoogle Scholar
  22. Geels FW (2010) Ontologies, socio-technical transitions (to sustainability), and the multi-level perspective. Res Policy 39(4):495–510CrossRefGoogle Scholar
  23. Håkansson H, Snehota I (1989) No business is an island: the network concept of business strategy. Scand J Manag 5(3):187–200CrossRefGoogle Scholar
  24. Hietanen O (2011) Rakennetun ympäristön tulevaisuus. In: Airaksinen M, Hietanen O, Manninen AP, Reijula K, Vainio T, Nenonen S (ed) Roadmap of the built environment. Final Report 5/2011. Tekes (in Finnish)Google Scholar
  25. Hurmekoski E (2016) Long-term outlook for wood construction in Europe. Dissertationes Forestales 211. University of Eastern Finland, School of Forest SciencesGoogle Scholar
  26. Johnson MW, Christensen CM, Kagermann H (2008) Reinventing your business model. Harvard Bus Rev 86(12):50–59 + 129Google Scholar
  27. Maglio PP, Spohrer J (2008) Fundamentals of service science. J Acad Mark Sci 36:18–20CrossRefGoogle Scholar
  28. Manyika J, Sinclair J, Dobbs R, Strube G, Rassey L, Mischke J, Remes J, Roxburgh C, George K, O’Halloran D, Ramaswamy S (2012) Manufacturing the future: the next era of global growth and innovation. McKinsey Global Institute Report, Nov 2012Google Scholar
  29. Markard J, Raven R, Truffer B (2012) Sustainability transitions: an emerging field of research and its prospects. Res Policy 41:955–967CrossRefGoogle Scholar
  30. Mathieu V (2001) Product services: from a service supporting the product to a service supporting the client. J Bus Ind Mark 16(1):39–61CrossRefGoogle Scholar
  31. McCormick K, Kautto N (2013) The bioeconomy in Europe: an overview. Sustainability 5(1):2589–2608CrossRefGoogle Scholar
  32. Michel S, Brown SW, Gallan AS (2008) An expanded and strategic view of discontinuous innovations: deploying a service-dominant logic. J Acad Mark Sci 36:54–66CrossRefGoogle Scholar
  33. Ministry of Agriculture and Forestry (2015) National Forest Strategy 2025Google Scholar
  34. Ministry of Economic Affairs and Employment (2017) Wood-based bioeconomy solving global challengesGoogle Scholar
  35. Ministry of Employment and the Economy (2014) The Finnish bioeconomy strategysustainable growth from bioeconomyGoogle Scholar
  36. Ministry of Employment and the Economy (2015) From forests to pioneering bioeconomy. Final report on the Strategic Programme for the Forest Sector (MSO)Google Scholar
  37. Mont O (2002) Clarifying the concept of product-service system. J Clean Prod 10(3):237–245CrossRefGoogle Scholar
  38. Näyhä A, Pesonen H-L (2014) Strategic change in the forest industry towards the biorefining business. Technol Forecast Soc Chang 81:259–271CrossRefGoogle Scholar
  39. Näyhä A, Pelli P, Hetemäki L (2015) Services in the forest-based sector—unexplored futures. Foresight 17:378–398CrossRefGoogle Scholar
  40. Neely A, Benedettini O, Visnjic I (2011) The servitization of manufacturing: further evidence. University of Cambridge, Cambridge Service Alliance. In: 18th European Operations Management Association conference, Cambridge, 3–6 July 2011Google Scholar
  41. Normann R, Ramírez R (1993) From value chain to value constellation: designing interactive strategy. Harvard Bus Rev 71:65–77Google Scholar
  42. OECD (2016) Enabling the next production revolution: the future of manufacturing and services—Interim Report. Meeting of the OECD Council at Ministerial Level, Paris, 1–2 June 2016Google Scholar
  43. Oliva R, Kallenberg R (2003) Managing the transition from products to services. Int J Serv Ind Manage 14:160–172CrossRefGoogle Scholar
  44. Ostrom AL, Bitner MJ, Brown SW, Burkhard KA, Goul M, Smith-Daniels V, Demirkan H, Rabinovich E (2010) Moving forward and making a difference: Research priorities for the science of service. J Serv Res 13(1):4–36CrossRefGoogle Scholar
  45. Pätäri S, Kyläheiko K, Sandström J (2011) Opening up new strategic options in the pulp and paper industry: Case biorefineries. Forest Policy Econ 13:456–464CrossRefGoogle Scholar
  46. Payne A, Frow P, Eggert A (2017) The customer value proposition: evolution, development, and application in marketing. J Acad Mark Sci 45:467–489CrossRefGoogle Scholar
  47. Payne A, Storbacka K, Frow P (2008) Managing the co-creation of value. J Acad Mark Sci 36(1):83–96CrossRefGoogle Scholar
  48. Pelli P, Haapala A, Pykäläinen J (2017) Services in the forest-based bioeconomy—analysis of European strategies. Scand J For Res 7:559–567Google Scholar
  49. Pfau FS, Hagens JE, Dankbaar B, Smits AJM (2014) Visions of sustainability in bioeconomy research. Sustainability 6(3):1222–1249CrossRefGoogle Scholar
  50. Pilat D, Cimper A, Olsen KB, Webb C (2006) The changing nature of manufacturing in OECD economies. OECD science technology and industry working papers, 2006/09. OECD Publishing, ParisGoogle Scholar
  51. PwC and ULI (2016) Emerging trends in Real Estate®—beyond the capital. Europe 2016. PwC, Urban Land Institute (ULI)Google Scholar
  52. Rönnlund I, Pursula T, Bröckl M, Hakala L, Luoma P, Aho M, Pathan A, Pallesen BE (2014) Creating value from bioresources—innovation in Nordic bioeconomy. Nordic Innovation Report 2014:01, May 2014. Gaia Consultin, Agrotech Ltd.Google Scholar
  53. Schmid O, Padel S, Levidow L (2012) The bio-economy concept and knowledge base in a public goods and farmer perspective. Bio-Based Appl Econ 1(1):47–63Google Scholar
  54. Sitra (2009) Background report on the natural resource strategy for Finland: natural resources—an opportunity for change. Sitra, the Finnish Innovation FundGoogle Scholar
  55. Sitra (2011) Sustainable bio-economy: potential, challenges and opportunities in Finland. PBI Research Institute, Magnus Gustafsson, Robert Stoor, Anastasia Tsvetkova. Sitra Studies 51, Mar 2011Google Scholar
  56. Skålen P, von Gummerus J, Koskull C, Magnusson PR (2015) Exploring value propositions and service innovation: a service-dominant logic study. J Acad Mark Sci 43:137–158CrossRefGoogle Scholar
  57. Smith A, Voss JP, Grin J (2010) Innovation studies and sustainability transitions: the allure of the multilevel perspective and its challenges. Res Policy 39(4):435–448CrossRefGoogle Scholar
  58. Smith L, Maull R, Ng ICL (2014) Servitization and operations management: a service dominant-logic approach. Int J Oper Prod Manage 34(2):242–269CrossRefGoogle Scholar
  59. Staffas L, Gustavsson M, McCormick K (2013) Strategies and policies for the bioeconomy and bio-based economy: an analysis of official national approaches. Sustainability 5(1):2751–2769CrossRefGoogle Scholar
  60. Stehrer R, Baker P, Foster-McGregor N, Koenen J, Leitner S, Schricker J, Strobel T, Vieweg H-G, Vermeulen J, Yagafarova A (2014) Study on the relation between industry and services in terms of productivity and value creation. Final report. ECSIP consortium: wiiw, Ifo and EcorysGoogle Scholar
  61. Tukker A (2004) Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet. Bus Strategy Environ 13(4):246–260CrossRefGoogle Scholar
  62. Vandermerwe S, Rada J (1988) Servitization of Business: adding value by adding services. Eur Manag J 6(4):314–324Google Scholar
  63. Vargo S, Lusch R (2004) Evolving into a new dominant logic for marketing. J Mark 68:1–17CrossRefGoogle Scholar
  64. Vargo S, Lusch R (2008) Service-dominant logic: continuing the evolution. J Acad Mark Sci 36(1):1–10CrossRefGoogle Scholar
  65. Vargo SL, Lusch RF (2011) It’s all B2B… and beyond: toward a systems perspective of the market. Ind Mark Manage 40(2):181–187CrossRefGoogle Scholar
  66. Vargo S, Lusch R (2016) Institutions and axioms: an extension and update of service-dominant logic. J Acad Mark Sci 44:5–23CrossRefGoogle Scholar

Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  • Päivi Pelli
    • 1
  • Jyrki Kangas
    • 1
  • Jouni Pykäläinen
    • 1
  1. 1.School of Forest SciencesUniversity of Eastern FinlandJoensuuFinland

Personalised recommendations