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Article
Publication date: 5 December 2023

Yuan Chang, Xinguo Ming, Xiaoqiang Liao, Yuguang Bao, Zhihua Chen and Wenyan Song

This study is a reference for manufacturers who are promoting their product-service system (PSS) development. Currently, improvements in both digital customization and…

Abstract

Purpose

This study is a reference for manufacturers who are promoting their product-service system (PSS) development. Currently, improvements in both digital customization and sustainability for various smart PSS categories have been considered rarely. This paper addresses this research gap by developing relevant models.

Design/methodology/approach

The development trends of customization-oriented PSS are described in a literature review. An in-depth multiple-case study methodology is adopted, and seven manufacturing companies are sampled. The goal is to identify digital customization measures that can be employed on representative smart PSS models and to explore how these models can create sustainable value.

Findings

This study provides valuable insights by uncovering a synthesis framework for achieving customization of the product/use/result-oriented smart PSSs, and the relevant representative smart functions are summarized. This identifies how digital customization capabilities can improve sustainability, including direct economic value for customers as well as additional social benefits and environmental improvements during customization.

Originality/value

Currently, the influence of digitalization on customized offerings and the relevant impact on sustainability development have not been fully addressed to date. This study provides comprehensive information with a reference value for digital customization transformation among the three main types of smart PSS.

Details

Journal of Manufacturing Technology Management, vol. 35 no. 1
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 16 May 2023

Desmadi Saharuddin, M. Arief Mufraini, Abdul Ghoni, Inayatul Chusna, Ade Sofyan Mulazid and Supriyono Supriyono

This study aims to determine the prospect of takaful funerals as an Islamic insurance product and its marketing strategy. The multicase study analyzed is the Takaful Funeral…

Abstract

Purpose

This study aims to determine the prospect of takaful funerals as an Islamic insurance product and its marketing strategy. The multicase study analyzed is the Takaful Funeral Amsterdam of Indonesia, launched in 2015, Millî Görüs of Turkey in 1970 and Arrahma of Morocco in 2006.

Design/methodology/approach

This study delivers an analytic hierarchy process to qualitatively and quantitatively describe Muslim customers’ priority choice and interest criteria for takaful funerals as a forerunner of Islamic insurance products.

Findings

Based on the priority choice and interest criteria, the highest priority element of takaful funeral products is market need (49.21%). The group subcriteria were dominant compared to the individual subcriteria. Product design is the second choice (20.9%), with function as the priority in subcriteria.

Practical implications

This indicates that the Muslim community urgently needs funeral service products that are consistent with Islamic law, which emphasizes its function. The market needs as the highest priority element implies that bundling products, affordable prices and simple design are the most suitable methods for developing takaful funeral products in Indonesia.

Originality/value

To the best of the authors’ knowledge, this is the first study to discuss Islamic funerals in Indonesia, with the potential to be further developed with the increasing need of the Islamic insurance industry for new products. Previous research did not examine the PPME Al-Ikhlas Takaful Amsterdam, Millî Görüs of Turkey and Arrahma of Morocco as case studies for developing Islamic funeral insurance in Indonesia. Therefore, this gives the present study high originality.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 16 no. 5
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 27 January 2023

Saad Zighan, David Bamford, Iain Reid and Ahmed EL-Qasem

This study examines the criteria for evaluating the quality of servitization and the factors influencing the project–service system's success.

Abstract

Purpose

This study examines the criteria for evaluating the quality of servitization and the factors influencing the project–service system's success.

Design/methodology/approach

Evidence was collected through three rounds of Delphi consensus with 42 project managers.

Findings

The results indicate that the quality of servitization in project-oriented organizations is conceptualized as a cumulative construct driven by the product-service system's overall ability to offer more customer value. This value is defined by three interconnected dimensions: the service, the project and the integration system. The study also proposes a novel customer-oriented quality process with two connected levels comprising eight key factors influencing the quality of the project–service systems and nine key quality criteria that assist in evaluating the project–service systems.

Practical implications

Offering extra services is crucial for successful project-oriented organizations to deliver more customer value. The value of servitization is the combined value of products and services. The failure of one of these components to satisfy customers leads to the collapse of the whole system, which entails the need for a balanced-focus quality system toward projects and services.

Originality/value

This study contributes to the quality of servitization in project-oriented organizations, arguing that a balance between service orientation and project orientation is preferred to increase customer value and reduce the clash and ambiguity between project operations and service provision.

Details

International Journal of Quality & Reliability Management, vol. 40 no. 9
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 15 April 2024

Bin Liu, Jing Sun and Zongsheng Huang

We investigate the extended service strategy choices of competing manufacturers and examine their impact on the retail platform.

Abstract

Purpose

We investigate the extended service strategy choices of competing manufacturers and examine their impact on the retail platform.

Design/methodology/approach

We construct a supply chain model with a retail platform as the leader and manufacturers as the followers. Manufacturers face differential consumer preferences on the same agency retail platform, and they can sell a bundled extended service product and sell a separate product without any extended service.

Findings

The sale of extended warranty services on the retail platform leads to lower pricing of the manufacturers' products and changes in the product market structure in response to differences in consumer preferences. The retailing platform tends to provide an extended warranty conditionally. The sale of extended warranty services on a retail platform would be detrimental to the interests of the manufacturer who sells products with extended warranty services and in favor of the manufacturer who sells products without them.

Originality/value

The equilibrium results of the retail platform’s non-sales and sales of extended warranty services for the no-extended warranty product under the same commission rate and differential commission rate models are discussed, and the product structure of the market is investigated, respectively.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 26 March 2024

Gonçalo Cordeiro de Sousa

This study aims to investigate the relationship between strategy intent (product-service innovation intention) and outcome (product-service innovation outcome), and the role that…

Abstract

Purpose

This study aims to investigate the relationship between strategy intent (product-service innovation intention) and outcome (product-service innovation outcome), and the role that external sources of innovation play in influencing this relationship.

Design/methodology/approach

Using data obtained from the community innovation survey, we apply a logit regression to a sample of 1,419 Portuguese firms. By examining the moderating effect of open innovation breadth, we assess how the relationship between differentiation intent and outcome is contingent upon the involvement of external stakeholders.

Findings

Our findings reveal that the relationship between differentiation intent and outcome is contingent upon the moderating effect of open innovation breadth. Our analysis suggests that the negative influence of different sources of innovation can be addressed by adopting a paradox lens.

Practical implications

This research provides valuable insights for managers. By simultaneously pursuing a differentiation strategy and engaging in collaboration with external sources, firms may compromise their ability to effectively differentiate their offer. Managers should consider the potential tensions arising from internal and external stakeholder relationships to optimize their innovation strategies.

Originality/value

This study contributes to the existing literature by shedding light on the role of external innovation sources in influencing the relationship between differentiation intent and outcome and the importance that information systems may have in this relationship. By exploring the moderating effect of open innovation breadth, we provide a nuanced understanding of how firms can navigate organizational tensions and leverage innovation for competitive advantage.

Details

Journal of Enterprise Information Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 16 November 2023

Kai Li, Lulu Xia, Nenggui Zhao and Tao Zhou

The purpose of this paper is to compare the pricing decisions and earning potential of the software supplier and the smart device manufacturer in different software promotion…

Abstract

Purpose

The purpose of this paper is to compare the pricing decisions and earning potential of the software supplier and the smart device manufacturer in different software promotion strategies.

Design/methodology/approach

Based on game theory, the authors formulate two promotion models, that is, the supplier implements software promotion activities individually (SP model) or outsources the promotion activity to the manufacturer under profit-sharing contract (MP model) when taking different channel power structures into consideration. Besides, in order to test the robustness of the conclusions, the authors also extend the basic model to the following situations: (1) the customers have different price elasticity toward service fee and product price; (2) the revenue sharing contract is employed by the supply chain members; and (3) the manufacturer's product promotion practice is taken into consideration.

Findings

The optimal service fee (product price) of the supplier (manufacturer) under SP model is always lower (higher) than that under MP model. Surprisingly, if the supplier is the channel leader and the profit sharing ratio exceeds certain threshold, the manufacturer's profit decreases in profit sharing ratio, which remains robust in three extension models. Moreover, the supply chain's profit in supplier-led game is always lower than that in Nash game irrespective of the promotion strategy in profit sharing context. When revenue sharing contract is adopted, the result holds only when the revenue sharing ratio is relatively low.

Originality/value

The authors originally explore two promotion strategies of the software supplier when taking the channel power structures into considerations, which has not been explored in the literature to the best of the authors' knowledge.

Details

Industrial Management & Data Systems, vol. 124 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 18 July 2023

Waleed Shleha, Yancy Vaillant and Jonathan Calleja-Blanco

The research presented in this paper has been conducted to understand the impact of advanced-servitized-products on the longitudinal sales performance of manufacturing companies…

Abstract

Purpose

The research presented in this paper has been conducted to understand the impact of advanced-servitized-products on the longitudinal sales performance of manufacturing companies across international markets. The research strives to understand how the onsite presence leverages this impact.

Design/methodology/approach

To reach this objective, an empirical sample of more than 4,000 sales transactions covering the period 2010–2019 in 74 foreign markets was collected from a single high-tech manufacturer producing and selling servitized solutions. The authors use a time fixed-effects model to test the authors' theoretically deduced hypotheses.

Findings

The authors' find the proportion of advanced-servitized products to positively impact sales performance over time and that this relation is moderated by the choice of international distribution channel. As compared to direct exports, onsite presence and intermediaries present a positive and negative moderating effect, respectively.

Originality/value

The paper offers a rare look into the international sales performance of advance-servitized-products. This paper does so using a service-dominant logic, which is still scarcely used within the servitization literature, despite the logic's adequacy for the study of the market behavior of service-augmented products.

Details

International Marketing Review, vol. 40 no. 4
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 22 August 2023

Diego A. de J. Pacheco, Rodrigo Veleda Caetano, Samuel Vinícius Bonato, Bruno Miranda dos Santos and Wagner Pietrobelli Bueno

Small retail stores in the luxury market face significant challenges due to fluctuations in market demand. This task turns challenging as it requires effectively coordinating and…

Abstract

Purpose

Small retail stores in the luxury market face significant challenges due to fluctuations in market demand. This task turns challenging as it requires effectively coordinating and translating customer needs into specific requirements that align with retail goals and available resources. However, limited empirical research exists investigating how managers can address service value and quality attributes in small retail stores. This article aims to bridge this gap by investigating the role of quality function deployment (QFD) in improving market and quality requirements management in small retail stores.

Design/methodology/approach

Based on the case study, a customer survey was initially conducted to gather information on critical characteristics valued in the luxury retail segment. QFD was used to assist the company in identifying and prioritizing key quality attributes to meet customer requirements effectively.

Findings

The findings demonstrate that implementing QFD in small luxury retail stores empowers managers to identify previously neglected product and service quality aspects. The article shows that QFD informs organizational adaptations that align with the demands of the retail market, leading to an improved ability to meet customer expectations and enhance customer value through the development of enhanced products and services. The study showcases the efficacy of the tested methodology in effectively capturing and prioritizing both tangible and intangible customer needs in retail.

Practical implications

Findings offer valuable insights to retail managers of small luxury stores, providing actionable market-oriented strategies. By implementing the recommended practices, managers can improve the store’s competitiveness and better cater to the customer base.

Originality/value

This study contributes to bridging persistent knowledge gaps by addressing the unique context of small luxury retail stores and introducing the application of QFD in this setting. The insights gained from this research are relevant to both retailing and quality management literature. Considering the growing prevalence of transformations in the retail industry, the study provides practical implications for retail managers in effectively navigating these changes.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 17 January 2023

Torben Juul Andersen and Søren Bering

The aim of this study is to gain important insights on integration oriented servitization identifying essential dimensions of effective structures, coordination approaches and…

Abstract

Purpose

The aim of this study is to gain important insights on integration oriented servitization identifying essential dimensions of effective structures, coordination approaches and management controls adopted by manufacturing firms that integrate forward towards distribution, sales and services.

Design/methodology/approach

The study adopts a theory-guided qualitative abductive methodology to conduct a comparative case-study of two manufacturing firms in the same industry integrating forward to enhance servitization but with significantly different performance outcomes. The findings are uncovered from a broad spectrum of primary and secondary data spanning two decades.

Findings

The consistently high-performing firm puts equal emphasis on production and downstream distribution, sales and services and motivate individuals to engage in entrepreneurial efforts to develop combined product-services offerings that are valued by customers. The underperforming firm prioritizes operating efficiency driven by engineering prowess and managed through planning, standardization, authority and central controls.

Research limitations/implications

The study is based on two representative firms operating in a specific industry context, which has ramifications for the generalizability of results and calls for replication studies to substantiate and extend findings.

Practical implications

Forward integration from manufacturing into distribution, sales and services represents a specific servitization strategy that needs structure and particular coordination approaches to be effective in complex dynamic product-markets. The characteristics of the outperforming case company provide useful insights on effective integrated servitization efforts.

Social implications

Forward integration is a commonly adopted strategy among manufacturing firms that constitute the backbone of modern economies and effective governance of these integration oriented servitization efforts has important implications for societal value creation.

Originality/value

This study builds on rationales from management science including economic theory, corporate strategy and different micro-foundational lenses and thereby hone recent calls for broader theoretical foundations to enlighten studies of the servitization puzzle.

Details

International Journal of Operations & Production Management, vol. 43 no. 10
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 17 January 2023

Abhishek Behl, Shampy Kamboj, Bijoylaxmi Sarmah, Vijay Pereira, Kirti Sharma, Hussain Gulzar Rammal and Elisa Arrigo

This study examines the impact of customer involvement (CI), technology strategy, firm internationalization and servitization on product and service innovation performance (SIP…

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Abstract

Purpose

This study examines the impact of customer involvement (CI), technology strategy, firm internationalization and servitization on product and service innovation performance (SIP) in hybrid offerings. In addition, it investigates the moderating role of digitization and co-creation in the relationship mentioned above.

Design/methodology/approach

A research framework was developed through the lens of service-dominant (S-D) logic theory, and the proposed research hypotheses were empirically tested. Primary data were collected via the survey method, and structural equation modeling was used to analyze the data.

Findings

Findings of this study suggest that the S-D logic theory effectively explains CI and servitization in hybrid offerings. Furthermore, digitization is a crucial driver of SIP. Additionally, this paper finds that co-creation moderates between servitization and innovation performance of hybrid offerings.

Practical implications

Besides theoretical contributions, this study presents valuable insights to manage service networks during servitization.

Originality/value

First, this work proposes a comprehensive framework of hybrid offerings' driving factors (i.e. CI, firm internationalization, technology strategy and servitization) and their impact on product and SIP. Second, it tests the moderating effects of digitalization and co-creation in the context of hybrid offerings.

Details

International Marketing Review, vol. 40 no. 4
Type: Research Article
ISSN: 0265-1335

Keywords

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