Understanding the Conditions of Separation for an Integrated Organizational Setup – PSS Divisional Boundaries in the Light of Heterogeneity and Duality Theories

Determined by an integrated value proposition PSS constitute a unique organizational setup that is pivotally grounded in the co-existence of integrated but yet separate product-, service- and customer sub-systems. In order to benefit from the variety of available skills, competences and knowledge resources, PSS try to arrange sub-system boundaries most permeable, thus striving for the highest possible level of integration. At the same time, PSS decrease the level of divisional separation towards a minimum. However, the relation of integration and separation needs further analysis in the light of organizational theory. While recognizing the need for increasing integration towards product&service co-designed, customer integrated solutions, research also claims that a separation-typed setup determines the crucial resource configuration that is needed for novel problem-solving approaches in PSS. More precisely, it is said that the upholding of a minimal threshold between separated organizational elements secures sufficient tension between established organizational thought-worlds which again may initiate processes of organizational learning and renewal. The contradictory nature of decreasing while also pertaining separation under the umbrella of an integrated organizational setup raises the need for a nuanced understanding of how boundaries within PSS form an important area of operation for the dynamic balancing of divisional knowledge transfer versus identity-shaping. With reference to the organizational development process towards a fully integrated PSS this paper presents suggestions about how PSS can design minimal threshold for a mutual but fluid co-existence of product-, service- and customer sub-systems.