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Servitization for consumer products: an empirical exploration of challenges and benefits for supply chain partners

Melanie E. Kreye (Department of Technology, Management and Economics, Danish Technical University, Kgs. Lyngby, Denmark)
Dirk Pieter van Donk (Faculty of Economics and Business, University of Groningen, Groningen, The Netherlands)

International Journal of Operations & Production Management

ISSN: 0144-3577

Article publication date: 12 April 2021

Issue publication date: 13 August 2021

650

Abstract

Purpose

To increase sustainability of their products and enable new business opportunities, manufacturers explore servitization in consumer markets. Yet, the literature has not addressed this development. This study is one of the first to investigate the challenges and benefits for manufacturers and their supply chains when engaging in business-to-consumer (B2C) servitization.

Design/methodology/approach

The study explores two unique cases of manufacturers of complex consumer products that aim to extend their service offerings to the end-users. Data were collected via semi-structured interviews, observations and secondary data.

Findings

First, the authors identify two factors as prerequisites for a servitized set-up: internal collaboration within the manufacturer and product characteristics (e.g. product complexity). Second, the authors identify the network as an important factor for B2C servitization, which includes the triadic set-up between manufacturer, installer and consumer. Third, the authors identify moderating institutional settings, such as regulations and consumer needs.

Originality/value

This research elaborates existing B2B servitization theory into an empirically informed theoretical framework for B2C contexts. It expands the view on servitization by introducing the network perspective to service a large number of geographically dispersed customers.

Keywords

Acknowledgements

The authors gratefully acknowledge the Special Issue editors’ contribution to this paper through their insightful and constructive comments throughout the review process. The authors also acknowledge contribution of Julia Frielink and Rasmus Peter Osterlund for data collection.

Citation

Kreye, M.E. and van Donk, D.P. (2021), "Servitization for consumer products: an empirical exploration of challenges and benefits for supply chain partners", International Journal of Operations & Production Management, Vol. 41 No. 5, pp. 494-516. https://doi.org/10.1108/IJOPM-07-2020-0439

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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