Rui Sousa and Giovani J.C. da Silveira
The purpose of this paper is to examine the relationship between product customization and servitization strategies, specifically the relationship between product customization…
Abstract
Purpose
The purpose of this paper is to examine the relationship between product customization and servitization strategies, specifically the relationship between product customization strategy intensity and degree of servitization (offering of basic and/or advanced services) and the moderating role of product customization strategy alignment on that relationship.
Design/methodology/approach
The authors develop and test hypotheses through partial least squares path modeling to analyze data from the Sixth International Manufacturing Strategy Survey, involving 931 manufacturers in 22 countries.
Findings
The results indicate that customization strategy intensity is positively associated with the offering of basic and advanced services; these relationships are not moderated by customization strategy alignment.
Practical implications
Manufacturers pursuing product customization strategies may be especially well positioned to servitize, even those with misalignment in strategic choices. Paradoxically, while manufacturers of standard products might look at servitization as an attractive strategy to differentiate their value proposition, they appear to be less servitized than manufacturers pursuing product customization.
Originality/value
This is one of the first studies to examine how manufacturing strategy choices (intensity and alignment) influence the adoption of servitization strategies. The study introduces manufacturing strategy as a contingency factor that influences the adoption of servitization, answering calls for the study of servitization contingencies.
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Rui Sousa and Giovani J.C. da Silveira
This study theoretically articulates and empirically validates a model of relationships between market complexity (competition intensity, heterogeneity and technological change)…
Abstract
Purpose
This study theoretically articulates and empirically validates a model of relationships between market complexity (competition intensity, heterogeneity and technological change), strategic focus on product and service differentiation, ADS offerings and differentiation advantage.
Design/methodology/approach
The authors develop and test hypotheses through structural equation modeling based on data from the Sixth International Manufacturing Strategy Survey (IMSS-VI), involving 931 manufacturers from 22 countries.
Findings
The results indicate that (1) market complexity has a positive impact on strategic focus on product and service differentiation; (2) focus on product and service differentiation, but not market complexity, has a positive impact on the extent to which business units offer ADS to their customers; (3) ADS have a positive impact on service differentiation advantage, but no influence on product differentiation advantage.
Practical implications
Managers should incorporate decisions related to ADS provision as part of their manufacturing strategy formulation processes to align markets, strategic focus on product and service differentiation, and ADS provision. ADS seem an appropriate lever for market differentiation, because they appear not only to support service differentiation advantage, but also to be consistent with strategic focus on product differentiation.
Originality/value
The study provides novel insights and large-scale empirical evidence on the influence of the market environment on the offering of ADS, as well as on how relationships between the product and service activity in the manufacturing organization may affect differentiation advantage.
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Rui Sousa and Giovani J.C. da Silveira
The purpose of this paper is to theoretically articulate and empirically test an integrated model of capability antecedents and performance outcomes of servitization strategies…
Abstract
Purpose
The purpose of this paper is to theoretically articulate and empirically test an integrated model of capability antecedents and performance outcomes of servitization strategies. The authors characterize servitization strategies based on the offering of two types of services: basic services (BAS) and advanced services (ADS).
Design/methodology/approach
Hypotheses are tested based on statistical analyses of a large survey of manufacturers from different countries and sectors.
Findings
The authors find that manufacturing capabilities associate with the provision of BAS, while service capabilities associate with both BAS and ADS; BAS do not impact financial performance, but support the offering of ADS; there seem to be naturally occurring servitization trajectories involving the gradual development of balanced levels of BAS and ADS and adequate levels of manufacturing and service capabilities.
Research limitations/implications
The findings on servitization trajectories are based on the observation of manufacturing business units at different stages of servitization (cross-sectional data).
Practical implications
Manufacturers wishing to servitize should distinguish between BAS and ADS and deploy a balanced adoption of BAS and ADS, using BAS as a platform. This should be accompanied with the building of appropriate capabilities.
Originality/value
This is one of the first studies to show an explicit link between different servitization strategies, capabilities, and servitization maturity. It provides new insights into the servitization paradox and servitization trajectories.
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Giovani Da Silveira and Nigel Slack
The concept of the “trade‐off” is increasingly seen as central to operations strategy because it forms the foundation of how we conceptualise the improvement process. A case‐based…
Abstract
The concept of the “trade‐off” is increasingly seen as central to operations strategy because it forms the foundation of how we conceptualise the improvement process. A case‐based methodology is employed to explore managers’ cognition regarding the idea of operations trade‐offs. Findings from the five case studies examined indicate that the idea of trade‐offs is not the problematic issue for practising managers that it is for academics, indeed it is an easily understood concept which describes the operational compromises routinely made by managers. The significance of specific trade‐offs within any operation is likely to be governed by two factors. These are, first, the degree of “importance” of the trade‐off, in terms of the impact it will have on overall operations competitiveness. The second is the “sensitivity” of the trade‐off. Sensitivity is the degree of change that will be caused to one element of the trade‐off when changes are made to the other.
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This study introduces a framework for the management of product variety in strategy and operations. It combines the analysis of five case studies in the UK and Brazil with a…
Abstract
This study introduces a framework for the management of product variety in strategy and operations. It combines the analysis of five case studies in the UK and Brazil with a research background based on the existing literature. The framework describes the elements and steps involved in the process of dealing with product variety needs in manufacturing systems. The results suggest how operations management should evaluate the gaps between the importance and performance of product variety to develop appropriate adaptive and flexibility measures when dealing with product variety requirements in operations and strategy.
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Avi Friedman, Aaron Sprecher and Basem Eid Mohamed
The concept of employing web-based configuration systems towards mass customization of housing has been implemented by some prefabricated housing companies around the globe, and…
Abstract
The concept of employing web-based configuration systems towards mass customization of housing has been implemented by some prefabricated housing companies around the globe, and has become a challenging research area in the last few decades as an outcome of advancements in communication and design technologies. Different methodologies have been employed with the aim of efficiently engaging future homebuyers in the design of their homes. The thrust of this paper is to systematically formalize an advanced configuration system for mass customization of prefabricated housing for a company operating in the Canadian market. The focus is on one floor bungalows which are common within the Province of Quebec. Such housing models targets a specific market sector; elderly couples seeking retirement homes, with the aim of improving affordability through maintaining particular design and production qualities.
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Giovani J.C. da Silveira, Brent Snider and Jaydeep Balakrishnan
The purpose of this paper is to investigate the role of compensation‐based incentives in relationships between enterprise resource planning (ERP) usage and delivery performance in…
Abstract
Purpose
The purpose of this paper is to investigate the role of compensation‐based incentives in relationships between enterprise resource planning (ERP) usage and delivery performance in manufacturing.
Design/methodology/approach
The authors carry out two studies exploring links between ERP, incentives, and performance from alternative perspectives: first, of incentives tied to regular production activities, and their relationship with delivery performance advantage over competitors; second, of incentives tied to improvement activities and their relationship with delivery performance improvements. Statistical analysis is carried out on data from 698 metal‐working manufacturers from 22 countries, giving a broad cross‐sectional view of a global industry.
Findings
The studies indicate that ERP usage relates positively with both delivery advantage and delivery improvements. Furthermore, incentives tied to improvement initiatives may explain delivery improvements, both directly and as moderators in the relationship between ERP and performance.
Research limitations/implications
The results suggest that ERP adoption can be framed as a principal‐agency phenomenon where performance outcomes are partially influenced by incentives.
Practical implications
The results imply that incentives tied to improvement initiatives may foster employee engagement with the new ERP, leading to stronger delivery performance benefits.
Originality/value
To the best of the authors' knowledge, this is the first research to explore ERP usage as a principal‐agency problem, and to analyse its relationships with incentives under alternative performance perspectives. The results may significantly contribute to the knowledge of ERP‐performance relationships and the role of incentives.