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From a firm-centric perspective, this study aims to elaborate on the types of servitisation strategies that can support a firm’s circular ambitions by asking: What is the role of servitisation in narrowing, slowing and/or closing resource loops? And, how are resources and capabilities arranged to provide such strategic circular service offerings?

Drawing on the experiences of an international manufacturing company from a dynamic capabilities perspective, the study offers an analytical framework that goes inside the firm’s operationalisation of its service offerings to support circularity in terms of the strategic decisions made. This framework is later used to frame the findings.

The study highlights the case-specific feedback loops and capabilities needed to support circular transitions. Various resource and innovation strategies for circularity are combined along customer interfaces and in partnership with upstream actors. Yet, open innovation strategies are conditioned by physical distance to provide circular services in remote areas.

The main contributions are empirical, analytical, conceptual and practical. The servitisation framework for circularity connects prior servitisation-circularity research and provides an analytical tool for framing future studies. The study also expands the definition of open innovation in that closed innovations for circularity can be achieved through “open” information exchange in knowledge networks, as well as provides advice for similar large manufacturing companies.

This study focuses on the strategic choices made by industrial firms for circular service provision and emphasises the environmental benefits from such choices, in addition to the economic and customer benefits covered in extant servitisation research.

Informal settlements are frequently located in hazardous areas with a high risk of natural disasters. Upgrading informal settlements can be difficult due to the time and expense needed to complete the process. This chapter advocates using a management framework of public services in informal settlements. In doing so, it addresses 17 of the 17 UN sustainable development goals (SDGs). The study reviewed the literature to investigate current ways of managing environmental enterprises in informal settlements in South Africa. Thereafter, the challenges of managing public services were explored, and a conceptual framework for managing public services by social enterprises in such communities was developed. The chapter found that environmental enterprises are classified as ‘green spaces’ and infrastructure, water and sanitation services, energy systems, and recycling initiatives. Essential aspects of sustainable community-based facilities management (SCbFM) for managing public services are maintenance, governance, community project management, environment service delivery, service performance, governance, community project management, environment service delivery, service performance, well-being and health and safety, disaster management, and finance. Some of the problems of managing public services in informal settlements include the limited skills of managers, the focus of government on new projects rather than managing existing projects, not choosing the right indicators to measure service performance, and limited guidelines for the health and safety of managers and disaster management. Thus, a new conceptual framework was needed and developed based on the principles of social capital and capability for managing services in informal settlements in South Africa.

Output from the Irish Dairy Industry has grown rapidly since the abolition of quotas in 2015, with processors investing heavily in capacity expansion to deal with the extra milk volumes. Further capacity gains may be achieved by extending the processing season into the winter, a key enabler for which being the reduction of duration of the winter maintenance overhaul period. This paper aims to investigate if Lean Six Sigma tools and techniques can be used to enhance operational maintenance performance, thereby releasing additional processing capacity.

Combining the Six-Sigma Define, Measure, Analyse, Improve, Control (DMAIC) methodology and the structured approach of Turnaround Maintenance (TAM) widely used in process industries creates a novel hybrid model that promises substantial improvement in maintenance overhaul execution. This paper presents a case study applying the DMAIC/TAM model to Ireland’s largest dairy processing site to optimise the annual maintenance shutdown. The objective was to deliver a 30% reduction in the duration of the overhaul, enabling an extension of the processing season.

Application of the DMAIC/TAM hybrid resulted in process enhancements, employee engagement and a clear roadmap for the operations team. Project goals were delivered, and original objectives exceeded, resulting in €8.9m additional value to the business and a reduction of 36% in the duration of the overhaul.

The results demonstrate that the model provides a structure that promotes systematic working and a continuous improvement focus that can have substantial benefits for wider industry. Opportunities for further model refinement were identified and will enhance performance in subsequent overhauls.

To the best of the authors’ knowledge, this is the first time that the structure and tools of DMAIC and TAM have been combined into a hybrid methodology and applied in an Irish industrial setting.

Poor municipal solid waste management is a major characteristic of urban development in Africa. In Ghana, local governments are mandated to ensure the collection, treatment and disposal of solid waste. However, this has been a herculean task for local governments in Ghana, owing to inadequate resources and weak technical capacities. This has prompted calls for, and actual involvement of the private sector through public-private partnerships (PPPs) in municipal solid waste management, particularly in the urban areas. This study aims to assess the roles, effectiveness and challenges of PPPs in urban waste management in the Sunyani municipality of Ghana.

Adopting a case study design, the study used a qualitative research approach to provide in-depth insights into PPPs in municipal solid waste management in the Sunyani municipality of Ghana. Therefore, key informant interviews and two focus group discussions were conducted.

The study revealed that some policies and actions of the local government (Assembly) do not positively facilitate the effective functioning of PPPs in municipal solid waste management. There is also lack of effective stakeholder consultation, collaboration and grassroot inclusion in the PPPs which affect the effective management of the increasing volumes of solid waste being generated within the municipality.

To achieve the objectives of the PPP arrangements, local authorities should initiate steps to effectively coordinate all the involved private companies. There must also be ways of involving the beneficiaries in the design and implementation of PPPs on waste management to allow for effective grassroots and participatory monitoring and evaluation.

The uniqueness of the case study being a mid-sized and secondary city in a developing country enhances the value of the findings and the application of recommendations in cities with similar characteristics and initiatives in improving PPPs in municipal waste management.

After studying and analyzing this case, students will be able to evaluate the strategic alternatives for growth for a small entrepreneurial business in an emerging market, analyze the trade-offs between maintaining continuity and change in the growth strategy adopted by an organization and synthesize an appropriate growth strategy for managing the trade-off between continuity and change in an organization.

It was late April 2022, and Mohammad Hamza – the founder and marketing head of Engineering & Environmental Solutions (E&E Solutions) – disconnected the call of his sales manager. His mind was fixated on how to craft the strategy for the next phase of the company’s growth. The deadline for their biggest tender was at the end of May 2022. Should he commit all the company’s reserves to this project or pursue global markets? Launched in 2015, E&E Solutions had come a long way from being a start-up with just one product to a full-blown manufacturer and environmental monitoring equipment service provider. Growing pollution and strictness in compliance propelled the demand for environmental monitoring equipment in India, poised to reach $342m by 2025. E&E Solutions leveraged its technological capabilities in Internet of Things and sensors producing low-cost monitoring equipment to gain an edge in an evolving market and bootstrapped its way to almost $5m annual turnover in 2021. However, the last review meeting brought many concerns for the next growth phase. E&E Solutions had so far focused on the domestic market, catering to the demands of private as well as government clients. A significant cause for concern had been the small order size of private players, averaging $2,000 and a lower net margin of 8%. Moreover, the company had been missing out on opportunities to bid for large government contracts owing to stringent bidding credentials required (such as turnover of at least 50%–80% of the project value and previous similar order experience with a range of at least 70% of the project value). Furthermore, the COVID-19 pandemic had stalled their efforts to tap a promising global environmental monitoring market (predicted to be $44bn by 2030). As Hamza and his team sat in their board room for a discussion, they had two alternatives. Either continue focusing on the domestic market, especially the big government contracts (more than $12m order size) or explore the markets in other emerging economies with demand for similar products (such as Middle East and North Africa region) more aggressively. Hamza was, however, wondering if they could do both, for he knew that to qualify for big government contracts, they needed to scale up. He was also getting restless after missing his target of reaching $20m in five years, especially since India’s ecosystem for start-ups and the small business sector had witnessed favorable policies and support from the government. He started pondering how to leverage his organization’s strengths and continuities to achieve the required pace and scale of change. His thoughts wandered around dividing the cash reserves of $500,000 to fuel growth without reducing the R&D budget. After all, R&D has been E&E Solutions’ forte since its inception and has been pivotal in creating its differentiation.

This case study can be used for core strategic management course at the undergraduate and graduate level of management programs. It can also be used in advanced strategy courses like strategic change, entrepreneurship and small business management offered in MBA programs.

Teaching notes are available for educators only.

CSS 11: Strategy

Surakarta needs to evaluate its flat management as the most populous city in Central Java, Indonesia. This study examines the implementation of flat management in Surakarta City and evaluates and recommends the appropriate flat retribution rate.

This study used the analytical descriptive method to explain the problems in managing flats in Surakarta City. The data were obtained through a review of existing regulations and in-depth interviews with the flat residents and managers. The proposed retribution tariff for flats is calculated with a market approach through a comparison with neighboring cities and/or districts adjusted to the regional minimum wage to accommodate the residents’ ability to pay.

Based on the results of interviews and a review of regulations, problems were identified in the management of flats in Surakarta City. A comparison of levy rates with surrounding districts led to a proposal for new levy rates, which were divided into two tariff groups based on the characteristics of flats in Surakarta City.

The result of this study is a suggested retribution tariff derived from an economic framework that has yet to be validated by assessing the flat residents' willingness to pay.

This paper complements previous studies on the management and financing of flats by more in-depth evaluating the current tariffs and providing recommendations for appropriate tariffs.

The United Nations' Sustainable Development Goal of ensuring healthy lives and promoting well-being for people of all ages underscores the vital role of public healthcare facilities (PHFs) in delivering essential healthcare services. However, these facilities often suffer from inadequate maintenance, exacerbated by the insufficient implementation of maintenance strategies. Recognizing the importance of PHFs in enhancing healthcare services, this paper investigates the Critical Success Factors (CSFs) in the maintenance strategies of PHFs in South Africa.

Through semi-structured interviews with nineteen purposively selected maintenance personnel from the Limpopo Department of Health (DoH), this study identified and analyzed the CSFs to enhance maintenance operations in PHFs. Thematic content analysis was employed to derive key insights from the collected data.

The study's findings highlight adequate maintenance planning and effective leadership as the two overarching CSFs in the maintenance of PHFs. These factors play a pivotal role in addressing challenges that hinder the current maintenance team from meeting maintenance requirements to the satisfaction of both staff and patients within PHFs.

The study offers valuable insights for policymakers to improve the effectiveness of maintenance operations in PHFs. By addressing the identified CSFs, policymakers can enhance maintenance operations in PHFs, positively impacting healthcare service delivery and the well-being of both staff and patients.

Heating, ventilating, air-conditioning and cooling (HVAC) systems are crucial in daily health-care facility services. Design-related defects can lead to maintenance issues, causing service disruptions and cost overruns. These defects can be avoided if a link between the early design stages and maintenance feedback is established. This study aims to use experts’ experience in HVAC maintenance in health-care facilities to list and evaluate the risk of each maintenance issue caused by a design defect, supported by the literature.

Following semistructured interviews with experts, 41 maintenance issues were identified as the most encountered issues. Subsequently, a survey was conducted in which 44 participants evaluated the probability and impact of each design-caused issue.

Chillers were identified as the HVAC components most prone to design defects and cost impact. However, air distribution ducts and air handling units are the most critical HVAC components for maintaining healthy conditions inside health-care facilities.

The unavailability of comprehensive data on the cost impacts of all design-related defects from multiple health-care facilities limits the ability of HVAC designers to furnish case studies and quantitative approaches.

This study helps HVAC designers acquire prior knowledge of decisions that may have led to unnecessary and avoidable maintenance. These design-related maintenance issues may cause unfavorable health and cost consequences.

How does business model design play a role in enabling manufacturing firms’ services? This study aims to investigate the impact of two distinct types of business model design, namely, efficiency-centered business model design (EBMD) and novelty-centered business model design (NBMD), and their effects in balanced and imbalanced configurations, on two types of services: product- and customer-oriented services.

Using matched survey data of 390 top managers and objective performance data of 195 Chinese manufacturing firms, this study uses hierarchical regression, polynomial regression and response surface analysis to test the hypotheses.

The results show that while EBMD positively affects product-oriented services, NBMD positively affects customer-oriented services. Both types of services exert a significant influence on firm performance. Furthermore, the degree of product- and customer-oriented services increases with an increasing effort level with a balance between EBMD and NBMD. Asymmetrical, imbalanced configuration effects reveal that the degree of product-oriented services is higher when the EBMD effort exceeds the NBMD effort, and the degree of customer-oriented services is higher when the NBMD effort exceeds the EBMD effort.

This study enriches the understanding of designing business models to facilitate service growth in manufacturing firms, ultimately benefiting firm performance. In addition, exploring balanced and imbalanced configurations of EBMD and NBMD offers new insights into business model dual design research.

This paper aims to contribute to the management control systems (MCS) changes in public-private partnerships (PPSs) by developing a conceptual archetype explaining the relationship between trust and MCSs in PPPs, and highlighting how this relationship may evolve over time.

The paper adopts a longitudinal case study methodology focusing on a hospital built and operated under a project finance deal. The methods adopted include semistructured interviews, direct observation and internal documentation analysis. We conducted 15 semistructured interviews from 2019 to 2021. In analyzing different documents and interviews, we triangulated data to ensure solid interpretation.

The case shows how trust can take different configurations depending on the type of MCS used. The results highlight how different patterns of MCSs, about trust, can be combined to govern PPPs. The case also shows the temporal dynamics of how MCS and trust evolve at different organizational levels and how bureaucratic control matched with contractual trust and trust-based control matched with competence trust can coexist at different times and organizational levels.

Managers involved in PPPs will be aware of the role of different types of trust in shaping and managing the relationship between partners at different organizational levels. Furthermore, the findings could help policymakers to adopt more informed decisions and to promote practice-based trust at various organizational levels of PPPs.

The paper proposes a management control archetype based on bureaucracy- and trust-based patterns concerning the level of programmability of tasks, as well as defined risks.