Abstract

Organizations seek to manage varied customer segments using varied value propositions. The ability of a knowledge‐intensive business service (KIBS) provider to formulate value propositions into attractive offerings to varied customers becomes a competitive advantage. In this specific business based on often highly abstract service offerings, this requires the provider to have a clear overview of its knowledge and resources and how these can be configured to obtain the desired customization of services. Hence, the purpose of this paper is to investigate how a KIBS provider can match value propositions with varied customer needs utilizing service modularity. To accomplish this purpose, a qualitative multiple case study is organized around 5 projects allowing within‐case and cross‐case comparisons. Our findings describe how through the configuration of knowledge and resources a sustainable competitive advantage is created through creating the right kind of value propositions for varied customers with the help of modularity. Understanding gained through this research helps KIBS organizations in their efforts to increase organizational effectiveness through modular services.