Disruptive business model transitioning in B2B : A subscription-based approach for Industry 4.0

Industry 4.0 has introduced technologies such as machine learning, Internet of Things (IoT), and cloud computing, which has disrupted markets across different industries. These technologies are prime examples of what has come to be known as disruptive innovations. With the advancement of disruptive innovations, organizations are constantly looking for new ways to satisfy customer needs. Therefore, organizations have begun to investigate alternative business models that differ from the conventional way of selling products/services. Within B2C-markets, the rise of subscription-based services has not gone unnoticed and has turned into a prominent business model among Fortune-500 organizations. Within B2B-practices however, subscription-based business models are mostly unheard of. Therefore, the purpose of this study was to examine how IndustryInternet of Things (IIoT) solution providers successfully can transition to a subscription-based business model when launching IoT-based disruptive innovations in industry 4.0 B2B-markets. This purpose was investigated in a quantitative study by constructing a questionnaire based on an adjusted six-factor Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) model. The model was used to stipulate factors influencing buying intention for IoT-technologies. The study was further complemented by qualitative interviews, which aimed to shed more light on buyer's perception of subscription-based business models for IoT-technologies. The respondents consisted of purchasing function employees within the chemical-, food and beverage-, and life sciences industries in Scandinavia and the US. The quantitative results showed that performance expectancy had the most significant impact on buying intention. The qualitative results stipulated themes based on each UTAUT2 factor while also enlightening how interviewees emphasize the importance of not hiding costs and raised concerns regarding the transfer of data ownership when purchasing IoT-technologies. To conclude, the authors stipulated a conceptual framework for the implementation of subscription-based business models when introducing of IoT-technologies within B2B-markets.