Rogelio Oliva and Robert Kallenberg
Management literature is almost unanimous in suggesting to manufacturers that they should integrate services into their core product offering. The literature, however, is…
Abstract
Management literature is almost unanimous in suggesting to manufacturers that they should integrate services into their core product offering. The literature, however, is surprisingly sparse in describing to what extent services should be integrated, how this integration should be carried out, or in detailing the challenges inherent in the transition to services. Reports on a study of 11 capital equipment manufacturers developing service offerings for their products. Focuses on identifying the dimensions considered when creating a service organization in the context of a manufacturing firm, and successful strategies to navigate the transition. Analysis of qualitative data suggests that the transition involves a deliberate developmental process to build capabilities as firms shift the nature of the relationship with the product end‐users and the focus of the service offering. The report concludes identifying implications of our findings for further research and practitioners.
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Nilay Bıçakcıoğlu-Peynirci and Robert E. Morgan
While the servitization concept has gained increasing attention in the domestic marketing literature, there is more limited knowledge with respect to its implications within the…
Abstract
Purpose
While the servitization concept has gained increasing attention in the domestic marketing literature, there is more limited knowledge with respect to its implications within the international context. The purpose of this paper is to examine the servitization concept in the international context considering its boundary conditions and its effects on firm performance. Relying on the resource-based view and the boundary conditions function, the authors aim to identify a set of research gaps focusing on how strategic resource decisions (i.e. slack resources and digital marketing capabilities) help industrial firms to provide different types of service offerings (i.e. services in support of product (SSPs) and services in support of client's actions (SSCs)) that leverage their performance in international markets.
Design/methodology/approach
The authors illustrate international servitization strategies and the boundaries of servitization activities that firms employ through a series of case vignettes. The authors derive a conceptual framework, serving as a guideline for future research endeavors.
Findings
The authors indicate the importance of servitization strategies in international markets and identify eight research gaps, which help to build an agenda for future research. Key differences between international servitization strategies and strategic resource decisions are addressed through illustrative case vignettes from different industries.
Practical implications
The insights from this work inform marketing executives about how international servitization strategies are influential in the context of overseas markets by characterizing the servitization concept and elaborating upon the specific resources and capabilities that underpin its execution in foreign markets.
Originality/value
This conceptual paper provides a comprehensive understanding of international servitization strategies in overseas markets and identifies several research paths that contribute to the complex nature of servitization in the international context and help scholars spot gaps and research questions worthy of investigation.
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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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This paper draws on the experiences of project marketing and solution selling to improve the understanding of how to create superior value for customers. Project marketing and…
Abstract
This paper draws on the experiences of project marketing and solution selling to improve the understanding of how to create superior value for customers. Project marketing and solution selling have both developed approaches to deal with complex marketing situations for a number of years now. The upstream mobilization of customer network actors and the downstream enlargement of the content and scope of the offering are the key features of these approaches.
This paper presents two case studies to focus attention on elements that are crucial to this twin-track approach. The downstream extension of the offering relies on services supporting the customer's action (SSC), which supplement traditional services that support the supplier's product (SSP). The upstream extension leads to an introduction to other types of services or elements of the offering – the services supporting the customer's network actors (SSCN).
Furthermore, the paper proposes a marketing process that takes the supplier's viewpoint, for whom the entire approach is a network mobilization, into account. This approach to the offering, which included SSP, SSC, and SSCN, is typical of a network strategy in which the supplier recruits and enrolls new actors to (re)model the buying center.
This marketing process is in tune with the latest developments of the service-dominant (S-D) logic, as it proposes a move from the value chain toward a value-creation network/constellation. Consequently, creating superior value for customer means mobilizing and servicing actors far beyond the boundaries of the buying center, supply chain, and customer solution net.
Chun Hsien Liu, Ming-Chao Chen, Yi-Hsien Tu and Chu-Ching Wang
– The purpose is to conceptually construct a service-dominant (S-D) logic-based integrated product service system (IPSS) business model.
Abstract
Purpose
The purpose is to conceptually construct a service-dominant (S-D) logic-based integrated product service system (IPSS) business model.
Design/methodology/approach
The model is constructed through literature reviews and inferences.
Findings
IPSS model is in compliance with the ten fundamental premises of S-D logic as well as conforming to triple bottom lines of sustainability.
Research limitations/implications
To convert a firm from goods-centric model to service-centric IPSS model is not easy. There are quite a few challenges to be overcome.
Practical implications
There are many successful cases adopting service-centric business model. The key success factors are to be identified in the future studies.
Originality/value
It is the first paper discussing the sustainability of IPSS model and its relationship with S-D logic.
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Wayne A. Neu and Stephen W. Brown
The purpose of this paper was to isolate and characterize organizational factors that enable the formation of high‐performing business services in product manufacturing firms.
Abstract
Purpose
The purpose of this paper was to isolate and characterize organizational factors that enable the formation of high‐performing business services in product manufacturing firms.
Design/methodology/approach
This study employed a case research design. In total, 32 depth interviews were conducted with 11 different managers from a Global 100 information technology manufacturing firm. These managers were directly responsible for forming a highly successful business service. All interviews were tape‐recorded, transcribed, and the resulting 500 pages of interview data were open‐coded in QSR NUDIST. A case report was reviewed by study participants to enhance construct validity.
Findings
The general conclusion is that forming high‐performing business services in product manufacturing firms stems largely from managers' ability to create internal alignment among several organizational factors that collectively “fit” conditions in the market.
Research limitations/implications
This study does not provide the statistical generalization to a larger population offered by a large‐sample study. In addition, all data were collected from individuals who were directly involved in the formation of the focal business service.
Practical implications
The insights from this study can help managers design within a product manufacturing firm an organization that supports the formation of complex business services.
Originality/value
While product manufacturers' expansion into services is very prevalent in practice, the development has received sparse academic research attention.
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Dong-Wook Kwak, Young-Joon Seo and Robert Mason
The purpose of this paper is to propose and validate a theoretical model to investigate whether supply chain (SC) innovation positively affects risk management capabilities, such…
Abstract
Purpose
The purpose of this paper is to propose and validate a theoretical model to investigate whether supply chain (SC) innovation positively affects risk management capabilities, such as robustness and resilience in global SC operations, and to examine how these capabilities may improve competitive advantage.
Design/methodology/approach
A theoretical model was developed from extant studies and assessed through the development of a large-scale questionnaire survey conducted with South Korean manufacturers and logistics intermediaries involved in global SC operations. The data were analysed using confirmatory factor analysis and structural equation modelling to validate the suggested model.
Findings
It was found that innovative SCs have a discernible positive influence on all dimensions of risk management capability, which in turn has a significant impact on enhancing competitive advantage. Therefore, this work provides evidence for the importance of SC innovation and risk management capability in supporting competitive advantage.
Research limitations/implications
This study contributes to providing an empirical understanding of the strategic retention of SC innovation and risk management capabilities in the SC management discipline. Furthermore, it confirms and expands existing theories about innovation and competitive advantage.
Practical implications
The finding provides firm grounds for managerial decisions on investment in technology innovation and process innovation.
Originality/value
This research is the first of its kind to empirically validate the relationships between SC innovation, risk management capabilities and competitive advantage.
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Laura Purvis, Andrew Lahy, Robert Mason and Mike Wilson
The aim of the paper is to explore the changing role of a logistics service providers (LSPs) to better support their supply chain (SC) partners on their journey of advancing their…
Abstract
Purpose
The aim of the paper is to explore the changing role of a logistics service providers (LSPs) to better support their supply chain (SC) partners on their journey of advancing their product-service systems through distributing manufacturing around the world. The purpose of this paper is to investigate a novel route towards service growth followed by the LSP by integrating upstream into the value chain and the resultant consequences in the configuration of the servitisation strategy, SC structure and allocation of roles.
Design/methodology/approach
A longitudinal exploratory case study design is followed. The case company is one of the world’s largest LSPs.
Findings
The study highlights how companies can transition towards the development of service solutions when not following a uni-directional, downstream pattern of integration in the value chain. The findings challenge the established model of servitisation as a forward uni-directional process across the continuum from goods to a service-focussed logic. They illustrate how companies can also move in a reversed direction, move possible back-and-forth or extend and restrict their position along the servitisation continuum.
Originality/value
The study reveals that service transition involves a deliberate developmental process to build capabilities as firms shift the focus of their product-service offering. It provides novel empirical evidence of how the service growth journey can manifest itself in practice. With insights into the benefits and challenges of distributed manufacturing, it also highlights some of the opportunities available to LSPs to expand their product-service offerings and some of the potential threats.
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In this chapter, we set out to demonstrate how organizational theory and analysis can benefit from the work of the distinguished philosopher Alasdair MacIntyre. In the first part…
Abstract
In this chapter, we set out to demonstrate how organizational theory and analysis can benefit from the work of the distinguished philosopher Alasdair MacIntyre. In the first part of the chapter we show how MacIntyre's conception of how rival traditions may move towards reconciliation has the potential to resolve the relativist conclusions that bedevil organization theory. In the second part, we show how MacIntyre's ‘goods–virtues–practices–institutions’ general theory provides a framework for reconciling the fields of organization theory and organizational ethics. In the third part, we provide a worked example of these two strands to demonstrate the implications of MacIntyre's philosophy for organizational analysis. We conclude with a research agenda for a distinctively MacIntyrean organization theory.