Jukka Partanen, Marko Kohtamäki, Vinit Parida and Joakim Wincent
The purpose of this paper is to develop a new scale for measuring the scope (i.e. breadth and depth) of industrial service offering.
Abstract
Purpose
The purpose of this paper is to develop a new scale for measuring the scope (i.e. breadth and depth) of industrial service offering.
Design/methodology/approach
The scale and its constructs are developed by combining the key insights from prior literature and practitioners gained through expert interviews; validating the constructs by 3 item-construct validation rounds with 9 academic experts; and by testing and further revising the scale, with a sample of 91 manufacturing firms.
Findings
The distinct contribution of the study is the construction and validation of a new multi-dimensional scale for operationalizing the scope of industrial service offering. In addition, the identified service categories (i.e. pre-sales services, product support services, product life-cycle services, R&D services and operational services) extend the current literature on service typologies.
Research limitations/implications
The data are somewhat biased toward small- and medium-sized industrial firms. Hence, the development of the measurement in the context of large industrial firms provides one fruitful avenue for further research.
Practical implications
For managers of industrial firms, the identified service categories provide novel insight on how to develop, bundle and commercialize industrial services to their varying customer segments.
Originality/value
This study develops a multi-dimensional, fine-grained, statistical and relationship-level scale for measuring the scope of industrial service business. Moreover, this study tests and further develops the scale with quantitative empirical data.
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Marko Kohtamaki, Henri Hakala, Jukka Partanen, Vinit Parida and Joakim Wincent
Product-manufacturing firms are increasingly positioning themselves as providers of industrial services and solutions. Despite the increasing conceptual interest in industrial…
Abstract
Purpose
Product-manufacturing firms are increasingly positioning themselves as providers of industrial services and solutions. Despite the increasing conceptual interest in industrial services, empirical evidence about the factors that mediate the relationships between industrial services and firm performance remains limited. The purpose of this paper is to investigate the relationship between industrial service offerings, service orientation and firm sales and profit performance.
Design/methodology/approach
The study uses data from 115 manufacturing firms and adopts a structural equation modeling technique to test a set of hypotheses on service offerings, service orientation and company sales and profit performance.
Findings
The results underline the importance of implementing service orientation in employees’ behavior, recruitment, training, and assessment. Service orientation is demonstrated as an essential mediator for the relationship between service offerings, revenues, and profits. The results therefore suggest that both service offerings and service orientation are important when manufacturing companies attempt to position themselves as industrial service providers.
Research limitations/implications
Given the limitations of the sample collected from the Finnish manufacturing industry, future studies could refine the measures and investigate the applicability of the results in other contexts.
Practical implications
The results suggest that developing a service orientation is vital for manufacturing companies to profit from increased offerings of industrial services. Because nurturing service orientation is a central enabler of the impact of service offerings on sales and profit performance, it is in the interests of manufacturing firms moving towards a servitized business model to develop training, compensation, and recruitment policies.
Originality/value
The study establishes a link between service offerings, service orientation, sales, and profit performance in manufacturing firms. This is among the first studies to provide statistical evidence to support claims that even manufacturing firms can benefit from developing integrated product-service solutions.
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Mohammad A.K. Alsmairat and Moh'd Anwer AL-Shboul
This study tries to examine how supply chain (SC) absorptive capacity (AC), SC ambidexterity, SC risk mitigation and supply chain agility (SCA) affect SC efficacy (SCE) in…
Abstract
Purpose
This study tries to examine how supply chain (SC) absorptive capacity (AC), SC ambidexterity, SC risk mitigation and supply chain agility (SCA) affect SC efficacy (SCE) in manufacturing firms (MFs) in the Middle East region.
Design/methodology/approach
Using a quantitative approach through a survey-based study, 1,004 questionnaires were distributed to the MFs that are listed in the chambers of the industries of Jordan, Egypt, Saudi Arabia and Bahrain in the Middle East region, with 239 useable and valid responses retrieved for analysis, representing a 23.8% response rate. The main respondents were chief executive managers, operations managers, managers and logistics managers from both mid and top levels. The conceptual model was tested by using a hypothesis-testing deductive approach. The findings are based on covariance-based analysis and structural equation modeling (SEM) using partial least squares-SEM (PLS-SEM) software.
Findings
This study illustrates a significant relationship between SC AC, SC ambidexterity, SC risk mitigation and SCA on SCE. Further, the findings indicate that there is a significant effect of SC risk mitigation as a mediating factor in the relationship between SC AC, and SC ambidexterity on SCE directly and indirectly, as well through a moderating effect of SCA in these relations. Finally, there is a significant direct and indirect effect of SCA in the relationship between SC AC and SC ambidexterity on SCE as a moderating factor.
Originality/value
This study presents theoretical and empirical insights that both SC risk mitigation and SCA are proper logistics features for mediating and moderating extends the literature by adding a positive role of SC AC and SC ambidextrousness in mitigating SC risks. However, this study adds up the SC literature by evidencing moderating role of SCA between the absorptive capacities, ambidexterity on SCE. Such findings of this study can provide insightful implications for managers and practitioners at different levels in and efficacy among MFs (MFs, stakeholders and policymakers regarding the importance of using the three mentioned enablers on SCE) in MFs, particularly in the Middle Eastern firms and in developing countries in general East region.
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Mukta Srivastava, Sreeram Sivaramakrishnan and Neeraj Pandey
The increased digital interactions in the B2B industry have enhanced the importance of customer engagement as a measure of firm performance. This study aims to map and analyze…
Abstract
Purpose
The increased digital interactions in the B2B industry have enhanced the importance of customer engagement as a measure of firm performance. This study aims to map and analyze temporal and spatial journeys for customer engagement in B2B markets from a bibliometric perspective.
Design/methodology/approach
The extant literature on customer engagement research in the B2B context was analyzed using bibliometric analysis. The citation analysis, keyword analysis, cluster analysis, three-field plot and bibliographic coupling were used to map the intellectual structure of customer engagement in B2B markets.
Findings
The research on customer engagement in the B2B context was studied more in western countries. The analysis suggests that customer engagement in B2B markets will take centre stage in the coming times as digital channels make it easier to track critical metrics besides other key factors. Issues like digital transformation, the use of artificial intelligence for virtual engagement, personalization, innovation and salesforce management by leveraging technology would be critical for improved B2B customer engagement.
Practical implications
The study provides a comprehensive reference to scholars working in this domain.
Originality/value
The study makes a pioneering effort to comprehensively analyze the vast corpus of literature on customer engagement in B2B markets for business insights.
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Iñigo Flores Ituarte, Sergei Chekurov, Jukka Tuomi, Julien Etienne Mascolo, Alessandro Zanella, Patrick Springer and Jouni Partanen
Additive manufacturing requires a systemic approach to help industry on technology applicability research. Towards this end, the purpose of this research is to help manufacturing…
Abstract
Purpose
Additive manufacturing requires a systemic approach to help industry on technology applicability research. Towards this end, the purpose of this research is to help manufacturing business leaders decide whether digitalised manufacturing based on additive manufacturing are suitable for engineering applications and help them plan technology transfer decisions.
Design/methodology/approach
The methodology is based on case study research and action research, involving a mix of quantitative and qualitative research methods. The empirical part involved the study of the fatigue life of industrial component manufactured by laser sintering as well as a combination of quantitative and qualitative methods to define a strategic decision-making.
Findings
Laser-sintered plastic materials are suitable in end use automotive applications, especially when there are multiple product variations. Fatigue life of the tested coupling meets the design requirements. Additionally, production of mechanical parts can be substituted by additive methods while digitalising the manufacturing process to gain productivity, especially when there is a need for mass-customisation.
Research limitations/implications
This research relies on a single case study research. The application used is unique and its technical empirical data cannot be transferred directly to other applications.
Practical implications
Industry practitioners can use this research to shed light on technology transferability challenges considering technical feasibility of additive polymer materials, economic aspects as well as strategic implications for implementing digitalised manufacturing methods based on additive manufacturing.
Originality/value
This research presents a combined study of technical and strategic factors for additive manufacturing transferability using an industrial mass-customisation case as an example. In addition, a new cost comparison model is presented including the impact of geometry variations.
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Jan Holmström, Jouni Partanen, Jukka Tuomi and Manfred Walter
The purpose of this paper is to describe and evaluate the potential approaches to introduce rapid manufacturing (RM) in the spare parts supply chain.
Abstract
Purpose
The purpose of this paper is to describe and evaluate the potential approaches to introduce rapid manufacturing (RM) in the spare parts supply chain.
Design/methodology/approach
Alternative conceptual designs for deploying RM technology in the spare parts supply chain were proposed. The potential benefits are illustrated for the aircraft industry. The general feasibility was discussed based on literature.
Findings
The potential supply chain benefits in terms of simultaneously improved service and reduced inventory makes the distributed deployment of RM very interesting for spare parts supply. However, considering the trade‐offs affecting deployment it is proposed that most feasible is centralized deployment by original equipment manufacturers (OEMs), or deployment close to the point of use by generalist service providers of RM.
Research limitations/implications
The limited part range that is currently possible to produce using the technology means that a RM‐based service supply chain is feasible only in very particular situations.
Practical implications
OEMs should include the consideration of RM in their long‐term service supply chain development.
Originality/value
The paper identifies two distinct approaches for deploying RM in the spare parts supply chain.
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Jukka Lassila, Anna Tanskanen, Juha Lohjala and Jarmo Partanen
Based on literature and an empirical case, the purpose of this paper is to present a framework for decision‐making in utilities where unbundling considerations are taking place…
Abstract
Purpose
Based on literature and an empirical case, the purpose of this paper is to present a framework for decision‐making in utilities where unbundling considerations are taking place. The paper analyses the implications of splitting long‐term network planning activity from the organization responsible for short‐term network operation activities.
Design/methodology/approach
The proposed framework includes an analysis of impacts of external forces, set‐up of common targets and performance models, and alignment of responsibilities in the new organization. The empirical results and validation of the proposed framework is performed by an electric utility, where legal unbundling of activities has taken place; the study includes expert interviews and theoretical analysis.
Findings
Colliding interests in the new business model can be avoided if economic and technical targets are mainly set by the regulator for both network development and operation activities.
Research limitations/implications
The results are based on internal re‐organization; a complementary study on re‐organizing network business activities to an external service provider could give information about the generalizability of the findings.
Practical implications
Application of the proposed framework for decision‐making and lessons learned can support electric utilities when planning for unbundling and strategic target‐setting in the unbundled business model.
Originality/value
The study presents experiences of re‐organized network business activities in a pioneering market area with a long experience of outsourcing. The detailed analysis of internal re‐organization within one electric utility can facilitate further restructuring phases.
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Anna Tanskanen, Ari Jantunen, Juha‐Matti Saksa, Jarmo Partanen and Jukka Bergman
The purpose of this paper is to shed light on the governance choices of firms operating in the electricity distribution network operation activities. The study aims to consider…
Abstract
Purpose
The purpose of this paper is to shed light on the governance choices of firms operating in the electricity distribution network operation activities. The study aims to consider both costs and benefits of different governance choices and to examine which of the activities could be outsourced and which it is preferable to keep in‐house. The study makes a distinction between the electricity retail services and electricity distribution network activities and focuses solely on the network business.
Design/methodology/approach
The study is based on a four‐staged process and utilizes the extended transaction cost economics as a theoretical framework. The research design includes in‐depth interviews with ten managers and CEOs of Finnish electrical utilities, analysis and interpretation of findings and verification of results by electricity network business experts.
Findings
The extended transactional cost economics theoretical framework and research design support analysis of governance structures and make‐or‐buy decisions. The findings demonstrate that the activities of the companies operating in the electricity distribution business differ in terms of potential long‐term efficiency effects when sourced from the market or made in‐house. The determinants of the governance choice depend partly on the nature and strategic importance of the activity in question. Operations management seems to be a function to be kept in‐house in the current market situation, whereas there are clear potential benefits that can be obtained by outsourcing field work activities. The results related to the governance of control room activities are more complicated.
Originality/value
This study brings not only the transaction costs but also the benefit‐side and the dynamic aspects of boundary choices under assessment.
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Juha Haakana, Jukka Lassila, Tero Kaipia, Jarmo Partanen, Juha Lohjala and Hanna Niemelä
Underground cabling has become a true alternative in construction of electricity distribution networks, even in rural areas. The increasing amount of underground installations…
Abstract
Purpose
Underground cabling has become a true alternative in construction of electricity distribution networks, even in rural areas. The increasing amount of underground installations requires strategic work that helps to define the most profitable cabling targets. The purpose of this paper is to introduce a methodology to consider the underground cabling process.
Design/methodology/approach
The paper proposes a cabling concept that covers the issues on how cabling should be carried out. The analysis is based on techno‐economic and reliability analyses. The methodology consists of several steps that together constitute the concept.
Findings
The underground cabling concept comprises several steps that can be simplified into questions: where, what, when and how the network cabling process is carried out. The analysis of these questions and the related features of the network show that different approaches to the renovation can cause significant differences in profitability between the renovation strategies.
Research limitations/implications
The underground cabling concept provides a method to analyse the cabling process, and it contains several alternatives for applying the concept. Thus, the applicability of a certain method depends on the network and the objectives of the distribution system operator.
Practical implications
Renovation planning of the network has become common in distribution companies. Traditionally, ageing of the network has been the driver for the renovation. However, in the future, the scope of renovation planning should also include other renovation drivers, such as reliability.
Originality/value
The methodology proposed in the paper can be applied in the renovation and development process of distribution networks. The results are universal in the electricity distribution.
Details
Keywords
Jukka Lassila, Tero Kaipia, Juha Haakana and Jarmo Partanen
The purpose of this paper is to establish a methodological framework to address key issues in electricity distribution network development. The paper defines subtasks in the…
Abstract
Purpose
The purpose of this paper is to establish a methodological framework to address key issues in electricity distribution network development. The paper defines subtasks in the strategy process and presents key elements in the strategy work and long‐term network planning. The results are illustrated by a case network.
Design/methodology/approach
The paper describes the methodology for cost and reliability analyses in the strategy work. The focus is on techno‐economic feasibility of certain network development technologies in the network strategy and the surveys are linked to economic regulation, specifically to reliability of supply and allowed return. The study addresses the stages of strategic decision making and compilation of investment strategies.
Findings
The strategic planning concept and methods are applicable in practice; the results have proven valuable in the long‐term business development and in discussions with the company owners. Outage costs are an essential element in the economic regulation of the business, reliability being a key driver in network planning.
Research limitations/implications
There is no universal solution to strategic decision making, but each development task is highly case specific. This is due to diverging operating environments and targets set by the company owners; these issues strongly influence the strategy process.
Practical implications
The work illustrates strategic planning in an actual distribution company and shows how the methodology can be applied to the strategic network development. Nevertheless, the results cannot be generalised as such, but each network has to be considered individually.
Originality/value
The proposed concept can be applied to the long‐term development of distribution networks. The results are internationally applicable, yet diverging regulatory models call for specific methodology in each country.