N. Saccani, L. Songini and P. Gaiardelli
To analyse the role of after‐sales services in manufacturing contexts, and the related after‐sales performance measurement systems.
Abstract
Purpose
To analyse the role of after‐sales services in manufacturing contexts, and the related after‐sales performance measurement systems.
Design/methodology/approach
An exploratory case study research was performed in the automotive, household appliance, IT and consumer electronics industries. The sample is made up of 48 firms with after‐sales operations in Italy.
Findings
The role attributed to after‐sales activities in the IT and consumer electronics and household appliance industries shows an orientation to improve company image, customer satisfaction and retention (marketing focus). A different situation characterises the companies studied in the automotive industry. In most firms, however, measurement systems are quite simple and short‐term oriented, especially in the IT and consumer electronics and household appliance industries. The measurement of non‐financial performance emphasises effectiveness rather than efficiency, and the automotive industry, on the whole, presents more advanced measurement systems, together with more integrated strategic management of after‐sales. The household appliance industry, on the other hand, due to the significant presence of SMEs, is characterised by less sophisticated performance measurement systems.
Originality/value
Provides a representation of current empirical practices in after‐sales role and performance measurement, a topic insufficiently covered by conceptual and empirical research.
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Koji Kimita, Tim C. McAloone, Keiji Ogata and Daniela C.A. Pigosso
This study aims to develop a systematic method called servitization maturity model to support companies in developing distinctive capabilities for successful servitization.
Abstract
Purpose
This study aims to develop a systematic method called servitization maturity model to support companies in developing distinctive capabilities for successful servitization.
Design/methodology/approach
The concept of maturity models is adopted to support companies in developing distinctive capabilities for servitization. A systematic literature review and case study approach are employed to develop the maturity model.
Findings
The findings highlight 46 capabilities classified into seven categories: strategy and leadership, performance, offerings, customers, organization, network and digital technology. Furthermore, the evolutionary path is defined by combining two types of levels, i.e. capability and maturity levels, to develop these capabilities.
Research limitations/implications
The evolutionary path was partially validated through the application, while further investigation is required to validate the evolutionary path. Therefore, future research should investigate the further validation of the evolutionary path by conducting multiple case studies.
Practical implications
The proposed maturity model enables companies to not only capture the bigger picture of the required capabilities without oversight, but also determine a process for improving the requisite capabilities with feasible efforts.
Originality/value
Existing maturity models focused on the transition from less to more advanced services. However, recent studies emphasized that companies need to determine strategies that reflect their capabilities rather than simply move toward more advanced services. Based on this assumption, this study provides successive stages that enable companies to improve their capabilities through feasible efforts.
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Weijiao Wang, Shanshan Chen, Jinan Shao, Junfei Chu and Zhe Yuan
The aim of this study is to empirically test the link between servitization and trade credit in manufacturing firms as well as the boundary conditions of this link.
Abstract
Purpose
The aim of this study is to empirically test the link between servitization and trade credit in manufacturing firms as well as the boundary conditions of this link.
Design/methodology/approach
Using a unique dataset of 4,974 observations covering 838 manufacturing firms publicly listed in the United States during 1990–2020, this study examines the impact of servitization on trade credit and the moderating impacts of financial slack and service relatedness based on fixed-effect regression models.
Findings
The authors find that servitization shows a U-shaped relationship with trade credit. Besides, financial slack negatively moderates this U-shaped relationship whereas service relatedness has no significant impact on this relationship.
Originality/value
This paper is the first to empirically verify the influence of servitization on trade credit in manufacturing firms based on longitudinal secondary data and signaling theory. The research findings can provide several important theoretical and managerial implications for scholars and practitioners in operations management.
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Federico Adrodegari and Nicola Saccani
The purpose of this paper is to contribute to the understanding of the servitization phenomenon of product-centric companies, by identifying the resources, capabilities and…
Abstract
Purpose
The purpose of this paper is to contribute to the understanding of the servitization phenomenon of product-centric companies, by identifying the resources, capabilities and organizational aspects needed to successfully deploy a servitized business model (BM).
Design/methodology/approach
By adopting a literature-based approach, this paper develops a servitization maturity model (SeMM) aimed at assessing and positioning companies in the servitization journey. The paper also illustrates the model application to two small and medium-sized enterprises (SMEs), a machinery and a forklift truck company.
Findings
The SeMM identifies a set of 85 critical requirements that are used to evaluate the servitization level of product-centric companies, through a specific five-stage measurement scale. The requirements are categorized into: five maturity dimensions (organizational approach, process management, performance management, tools, capabilities) and nine BM Canvas components. The empirical application exemplifies how the SeMM can support managers in identifying and bridging the gaps in their servitization journey.
Originality/value
The SeMM adopts an original bi-dimensional approach and provides an operationalization of the servitization process through the identification of specific critical requirements framed on established BM and maturity dimensions taken from the literature. Moreover, the model responds to a call for research to develop practitioner-oriented tools and guidelines to support the servitization process, in particular for SMEs, and to the need to go beyond to measures of servitization based on indicators about number of services offered or their turnover.
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This study explores whether machinery firms with a ‘hidden champions’ profile leverage Industry 4.0 practices to roll out smart services; whether this allows them to get a firm…
Abstract
This study explores whether machinery firms with a ‘hidden champions’ profile leverage Industry 4.0 practices to roll out smart services; whether this allows them to get a firm grip on their installed base; and whether it allows them to expand their international (service) business. The research is conducted based on exploratory, multiple-case study methods.
The author finds that the implementation of smart services can improve a machine tool builder’s hold on its installed base and expand the scope of its international (service) business. However, the study also finds that the ability to capitalise on this potential depends on a series of moderating variables. The study also concludes that there is a risk that smart services do not unlock a strong willingness-to-pay among potential customers.
It, therefore, calls into question several conventional wisdoms, such as the possibilities that Industry 4.0 offers for suppliers operating in business-to-business markets, and the receptiveness to smart services by buyers in such markets. Finally, it highlights the specific liabilities faced by hidden champions with regard to expanding their smart services business.
The chapter provides practical insights into the hurdles that industrial suppliers must overcome in their attempts to achieve uptake of smart services by customers, particularly within a cross-border context.
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Anna Pistoni, Lucrezia Songini, Paolo Gaiardelli and Sara Pegorano
Ville Eloranta, Marco Ardolino and Nicola Saccani
This study aims to enhance the theoretical foundations of servitization research by establishing a theoretical connection with complexity management. The authors develop a…
Abstract
Purpose
This study aims to enhance the theoretical foundations of servitization research by establishing a theoretical connection with complexity management. The authors develop a conceptual framework to describe complexity management mechanisms in servitization and digital platforms' specific role in allowing synergies between complexity reduction and absorption mechanisms.
Design/methodology/approach
A theory adaptation approach is used. Theory adaptation introduces new perspectives and conceptualization to the domain theory (servitization, with a focus on the role of digital platforms) by informing it with a method theory (complexity management).
Findings
This study provides four key contributions to the servitization literature: (1) connecting the servitization and complexity-management terminologies, (2) identifying and classifying complexity-management mechanisms in servitization, (3) conceptualizing digital platforms' role in servitization complexity management and (4) recognizing digital platforms' complexity-management synergies.
Originality/value
This study highlights that by using digital platforms in servitization and understanding the platform approach more thoroughly, companies can gain new capabilities and opportunities to manage and leverage complexity.
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Felix Wortmann, Heiko Gebauer, Claudio Lamprecht and Elgar Fleisch