Service Modularization in an Evolving Context: A Comparison between the Old and the New World of Automotive Engineering Services in Germany

Modularity in services has emerged as a promising design approach that offers a sound balance between cost-efficiency in service production and customization. However, the existing literature draws on a narrow scope of service design that considers certain characteristics of service as constraints to the successful adoption of the concept, i.e. service modularization. The growing importance of service as a central logic to explain value creation suggests the need to expand this view and to understand how service modularization and changes in dynamic service contexts may come together. This article makes a first attempt in this direction by exploring service modularization in the light of major restructurings in the field of automotive engineering services (AES) in Germany. Through 22 qualitative interviews with customers and providers of AES, this article presents a conceptual process model that explains how service modularization of AES is propelled by transformational forces in an evolving