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Engaging with customers and addressing unmet value have become increasingly challenging within multi-stakeholder environments of service innovation. Therefore, this paper aims to address this challenge by studying how strategic design abilities address unmet value in service engagement strategies.

The authors conducted a qualitative inductive study at a multinational corporation and interviewed marketing and design professionals on their innovation practices in service engagement strategies.

From the inductive analysis, this study identified three strategic design abilities that effectively contribute to addressing unmet value throughout the co-evolving process of service engagement: envisioning value, modelling value and engaging value. Based on this, this study proposes the emerging co-evolving loop framework of service engagement strategies.

The limitation of this emerging theory is a lack of broad generalizability with mutual exclusivity or collective exhaustiveness across industries. A theoretical implication of the framework is the integration of strategic design and services marketing towards co-created engagement strategies.

The service engagement loop framework can be of great value to service innovation processes, for which an integrated, cross-functional approach is often missing.

The findings further suggest that next to a methodological skillset, strategic design abilities consist of a distinct mindset.

This paper introduces strategic design abilities to address unmet value and proposes a novel co-evolving loop framework of service engagement strategies.

The purpose of this paper is to analyse the fit between the strategy of service centres and their business model (BM) and to identify the BM components' characteristics and links that allow it to stand out in terms of service delivery and business performance.

This study applies an inductive qualitative multiple case study approach through the empirical analysis of top-performing Italian service centres operating in the Medium–Heavy Commercial Vehicle sector.

Research findings underline that the BM components of top performers are consistent amongst each other and with the adopted strategy and make a positive impact on the firm's performance. In particular, top performers are characterised by a solid financial structure based on equity, formalised and flexible organisational structures and processes, clarity in strategic direction and long-term orientation, grounded capabilities, competences and skills, trustful relationships with main service partners and a comprehensive set of managerial mechanisms.

This paper presents some limitations, typical of qualitative research based on case studies. Future works may include other dimensions of performance for identifying top performers, and extend the empirical analysis to different sectors and national contexts.

This paper supports the relevance of contingency theory – particularly the strategy-structure-performance paradigm – in the analysis of the role of a BM in successful servitization strategies of service centres. It highlights that the BMs of the top-performing companies are characterised by some common elements. From a practical perspective, the authors provide insights that can be useful for designing successful service-based BMs for service networks.

Due to the convergence of rapid business developments and digitization challenges, service orientation is back on the research agenda as a concept to improve firms’ business services. Yet, little is known about the type of determinants that are relevant and to what degree they affect a firm’s service-oriented strategy.

Building on structural equation modeling (SEM) and a unique data set of 131 international firms from different continents, the authors identify and analyze the key determinants in the context of a firm’s service-oriented strategy.

The findings show that in order to cater for changes, organizations have to manage and adapt the coherence of the determinants’ business services, business processes and knowledge sharing continuously. Moreover, the results show that a service-oriented strategy is not only influenced by business services as such, but business services mediate the relationships between business processes, governance and process-aware information systems to a service-oriented strategy.

A limitation is imposed by the limited sample size and the unbalanced response of participants (executive management). In future research, a more extensive survey among a broader group of participants will help the authors to develop their model further in order to generalize the results, as well as more finely grained research related to geography and size might be pursued. Future empirical research is necessary to identify and test the relationships between other constructs and study their effect on a firm’s service-oriented strategy.

On a practical level, the authors postulate that an organization’s executive management should pay attention to invest in an organizational entity (department) that manages business services continuously. This organizational entity has to ensure that related processes and knowledge sharing are in place to establish and maintain a service-oriented strategy.

This research contributes to service-oriented literature by operationalizing the implementation of an organization’s service-oriented strategy. The authors’ insights go beyond the findings of Aier et al. (2011). The authors found that a service-oriented strategy influences service-oriented project success positively. The authors extended these findings, based on a unique data set, by studying business services and influencing determinants (i.e. business processes, governance, PAIS and knowledge sharing) within the context of service orientation. The renewed attention to the concept of service orientation provides insights into critical determinants that influence the implementation of a service-oriented strategy.

This study aims to propose a theoretical framework and provide empirical evidence on the most successful marketing strategies for obtaining behavioural loyalty in small and medium enterprises (SMEs).

The data are based on 475 telephone surveys conducted among Spanish hairdressers. The authors have used ordinary least squares to estimate the empirical model.

Pricing, services and communication (Web page and in-store communication) are the main drivers of customer loyalty. SMEs have to be cautious with the use of social networks to avoid damaging loyalty. In addition, those positioned at high-price segments should pay more attention to communication on the Web, and all companies should find a balance between in-store communication and the sale of products for use at home.

Further research should try to replicate the findings with data from consumers and firms.

Service managers need to understand the optimal strategy to succeed in the market. The key insights of this study could also apply to other sectors, such as health, personal care and wellness services.

Previous research focussed mainly on large companies, while the role of loyalty in the success of SMEs has been poorly studied, with focus only on the antecedents and the measurement of loyalty. This study contributes to the previous research by analysing the effect of the strategy (price, range of services, communication, size and location) in the achievement of loyalty in SMEs.

Este trabajo propone un marco teórico y aporta evidencia empírica sobre las estrategias de marketing más exitosas en la consecución de lealtad comportamental en PYMEs.

Se ha realizado una encuesta telefónica a 475 peluqueros españoles. El modelo utilizado para la estimación es el de mínimos cuadros ordinarios.

Precio, servicios, y comunicación (página web y comunicación en la tienda) son los principales generadores de lealtad. Las PYMEs tienen que ser cautelosas con el uso de las redes sociales para evitar dañar la lealtad. Además, aquellas posicionados en altos precios deben prestar más atención a la comunicación en la web y todas deben encontrar un equilibrio entre la comunicación en el tienda y la venta de productos para su uso en casa.

Investigaciones futuras podrían replicar este estudio usando datos de consumidores y de empresa.

Los gerentes necesitan entender la estrategia óptima para tener éxito en el mercado. Las ideas claves de este trabajo podrían aplicarse a otros servicios personalizados de salud y bienestar.

La investigación previa se centra principalmente en grandes empresas mientras que el papel de la lealtad en el éxito de las pymes ha sido escasamente investigado y se ha centrado en los antecedentes y la medición de la lealtad. Este estudio realiza una contribución al analizar el efecto de la estrategia (precio, surtido de servicios, comunicación, tamaño y localización) en la consecución de la lealtad en las pymes.

Lealtad; pequeñas y medianas empresas; Pymes; peluqueros; estrategia de marketing; salon

Artículo de investigación

Service managers increasingly strive to achieve sustainability through strategies centered on circularity. With a focus on saving, extending and (re)generating resources and their enclosing service systems, circularity can contribute to environmental, social and financial gains. Yet, the notion of circularity is surprisingly understudied in service research. This article seeks to provide an initial conceptual understanding of circular service management, introducing illustrative strategies and research priorities for circular service management. This paper provides a roadmap for scholars, practitioners and policymakers to develop a deeper understanding of the opportunities from adopting circular services.

The authors explore the concept of circular service management by drawing upon existing literature on sustainability, circularity and service research. Strategies of circular service management and research priorities emerge on the basis of industry best practice examples and research on sustainability challenges and opportunities.

Service researchers have largely ignored the concept and role of circularity for service businesses. Extant research on the topic nearly exclusively features in non-service journals and/or does not seek to advance service theory through circularity. This article argues that circular service management enables the implementation of service thinking in the pursuit of sustainability and outlines four types of circular service management strategies.

The authors introduce the concept of circular service management and highlight the role of service research for designing and managing circular systems and operations. This article also offers a research agenda connecting managerial challenges and opportunities with key service research priorities for circular service management. This provides a roadmap for scholars, practitioners and policymakers to develop a deeper understanding of pursuing circular services, thereby contributing to a more sustainable future.

Chinese consumers’ cross-border internet shopping, so called “haitao” is an emerging popular trend in China. Haitao can be understood as service innovation process because it creates new market spaces and provides differentiated values for Chinese customers.

This study aims to explore the service innovation strategies and success factors of haitao business in the Chinese market. The authors selected two successful haitao sites of Amazon.cn and Gmarket.co.kr, as representatives of a global player and a niche player, and conducted a comparative case study to analyze their service innovation strategies and key success factors.

This comparative case analysis based on value chain framework revealed some common success factors such as trust, advanced system and alliances as well as their service innovation efforts. Amazon has advantages such as efficient logistics system and global sourcing, whereas Gmarket has advantages such as product category, sales promotions, and payment system.

This study provides some implications for managers with localization, alliances and platform strategies.

This paper aims to present a comprehensive framework that integrates the emerging trends of servitization and digitalization in manufacturing. The influence between digitalization and servitization is defined and quantified. Their contribution to firm performance is analyzed.

This paper presents a theoretical model that captures the relationships between the analyzed variables. Drawing on the Spanish Business Strategy Survey, hypothesis testing is conducted using data on 828 Spanish industrial firms. Linear regression models are built to capture the effect of each variable on firm performance and the type of interaction between the variables.

Servitization and digitalization are positively related to firm performance. Digitalization positively mediates the relationship between servitization and firm performance. The mediating effect of digitalization contributes to differentiating between the direct and indirect effects of servitization on firm performance.

The paper provides a useful analysis framework for firms to evaluate servitization and digitalization as success strategies. It is proposed that firms must simultaneously commit to digital transformation and the incorporation of services to create value, especially in business-to-business settings. Servitization and digitalization interact to exert a greater influence on performance.

The paper contributes to the theory on service strategy by providing an analysis model that includes digitalization as a mediator of the relationship between servitization and firm performance. Digitalization may provide a mechanism to unlock the benefits of servitization and thereby enhance firm performance.

The purpose of this paper is to develop an evaluation model to determine the relative weights of key factors influencing international market development (IMD) success through analysis network process (ANP) during group decision-making. An empirical case of the Taiwan bulk shipping industry is used to illustrate the feasibility of the proposed approach.

The literature review is performed to generate 20 key success factors (KSFs) along with four factor categories in IMD (such as organizational capability, environmental scanning, international strategy and internationalization behavior). Then, ANP is applied to develop an evaluation model that prioritizes the relative importance linking the above four factor categories with 20 evaluated KSFs.

With respect to the final weights for factor categories, “international strategy” and “environmental scanning” are the two most important criteria, followed by “organizational capability” and “internationalization behavior”. The results also showed that by reviewing the global weights of the 20 KSFs of IMD, “service as competitive advantage”, “market potential” and “risk taking” have the highest rankings.

The findings indicate that firm expansion into international markets typically depends on a successful international strategy. Hence, to enhance their global market competitiveness, Taiwan bulk shipping firms should focus their efforts on planning international market entry strategy and prioritizing shipping services with high-potential target markets.

Theoretically, the study results can provide both theoretical basis and empirical evidence, indicating the relative weights and priorities of KSFs of IMD for the Taiwan bulk shipping industry. From the managerial perspective, the analytical results can help managers focus on main factors and identify the best policy to improve their IMD practice and performance.

Previous research suggests that the compensation offered to customers after a service failure has to be substantial to make customer satisfaction surpass that of an error-free service. However, with the right service recovery strategy, it might be possible to reduce compensation size while maintaining happy customers. The aim of the current study is to test whether an anchoring technique can be used to achieve this goal.

After experiencing a service failure, participants were told that there is a standard size of the compensation for service failures. The size of this standard was different depending on condition. Thereafter, participants were asked how much they would demand to be satisfied with their customer experience.

The compensation demand was relatively high on average (1,000–1,400 SEK, ≈ $120). However, telling the participants that customers typically receive 200 SEK as compensation reduced their demand to about 800 SEK (Experiment 1)—an anchoring effect. Moreover, a precise anchoring point (a typical compensation of 247 SEK) generated a lower demand than rounded anchoring points, even when the rounded anchoring point was lower (200 SEK) than the precise counterpart (Experiment 2)—a precision effect.

Setting a low compensation standard—yet allowing customers to actually receive compensations above the standard—can make customers more satisfied while also saving resources in demand-what-you-want service recovery situations, in particular when the compensation standard is a precise value.

This paper aims to analyze the digital servitization (DS) process with the paradox theory lens. The purpose is to catch how intra- and inter-organizational tensions generate complexity along a DS journey to find “where” and “when” industrial companies can intervene to face them.

The methodology is a qualitative, in-depth single case study, which longitudinally explores the DS strategy of a manufacturer along with three phases of development: design, implementation and assessment.

The analysis reveals six intra- and inter-organizational tensions in DS and provides insights on tensions’ origin and how to face them. A theoretical framework on DS complexity and an empirical framework on tensions’ origin is produced.

The research combines service and organizational paradox literature. Together with a longitudinal methodology, it results in a spatial and temporal analysis of DS, from which theoretical and managerial implications are drawn.