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Article
Publication date: 23 August 2013

Phil Yihsing Yang, Lieh‐Ming Luo, Chun‐Sheng Joseph Li, Yi‐Chang Yang and Sandra H.T. Lee

Many manufacturers are transforming into manufacturing service industry to enhance their value creation. Adopting the value‐added chain model, this study aimed to conduct…

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1756

Abstract

Purpose

Many manufacturers are transforming into manufacturing service industry to enhance their value creation. Adopting the value‐added chain model, this study aimed to conduct four case studies, including Acer, Giant, TSMC and Eternal, to verify the high‐valued strategies and the common characteristics of service provisions.

Design/methodology/approach

Four case studies, including Acer, Giant, TSMC and Eternal, were conducted to verify the high‐valued strategies and the common characteristics of service provisions. Specifically, these companies are selected from different industry and value chain position to enhance the robustness of the research findings.

Findings

This study concluded that the manufacturing firms strengthen their position as system integrator. The provision of high‐valued services is orientated toward the integration of the value chain stages according to the industry and business model. The companies are going to upstream or downstream, outsource non‐core manufacturing activities, and sell some manufacturing assets. The high‐valued service strategies provided the manufacturing firms with new approaches to compete in a rapidly changing economy. The findings also provided the direction for the emerging economies in confronting with industrial structure transformation.

Originality/value

This study focuses on the transformation of four manufacturing firms toward providing high value‐added services. The results conclude that manufacturing firms can integrate forward and backward stages in the value‐added chain, and provide the knowledge‐based services including R&D, marketing, information system, branding, financial and after‐sale services to enhance the market value of their products. This study argues that the high value‐added service strategies can be a great opportunity for the manufacturers.

Details

Chinese Management Studies, vol. 7 no. 3
Type: Research Article
ISSN: 1750-614X

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Article
Publication date: 2 August 2011

Koi Nyen Wong and Tuck Cheong Tang

This paper aims to examine both the cointegrating and causal relationships among inward FDI and the host country's employment in manufacturing and services sectors.

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3918

Abstract

Purpose

This paper aims to examine both the cointegrating and causal relationships among inward FDI and the host country's employment in manufacturing and services sectors.

Design/methodology/approach

This paper applies autoregressive distributed lag (ARDL) framework to test the cointegration and causality patterns using Singapore as a case.

Findings

Apart from the presence of a unique long‐run relationship, the findings also show evidence of long‐run causality, running from employment in manufacturing and services to FDI inflows, and from FDI inflows and services employment to manufacturing employment. Furthermore, there is evidence of short‐run causality showing strong FDI‐employment and employment linkages, predominantly from the manufacturing to services.

Research limitations/implications

One likely area of future research is to extend this paper by using disaggregated data, e.g. FDI inflows by sector (manufacturing and services), and employment by the respective sectors.

Practical implications

Manufacturing and services have been regarded as the “twin engines” of growth for the Singapore economy. As the economy is moving up the value chain from downstream to upstream activities, a significant proportion of foreign direct investment (FDI) has been attracted to the manufacturing and services sectors. The present study provides useful policy implications towards promoting foreign investment in emerging areas of and manpower development in both sectors of the economy.

Originality/value

This paper explores the possible interactions between FDI inflows and employment in manufacturing and services sectors as well as the employment linkages between manufacturing and services in Singapore.

Details

Journal of Economic Studies, vol. 38 no. 3
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 1 May 1998

Rhian Silvestro

Compares, contrasts and assimilates the contributions of the TQM manufacturing and service quality management literatures. A manufacturing model of TQM is proposed, and…

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3023

Abstract

Compares, contrasts and assimilates the contributions of the TQM manufacturing and service quality management literatures. A manufacturing model of TQM is proposed, and then developed and enhanced in the light of concepts, tools and techniques which have emerged from the service quality literature. Examination of the core TQM precepts in the light of the service literature highlights certain key asymmetries and differences between the manufacturing and service literatures on quality management, both being characterised by different strengths and weaknesses. While the manufacturing literature is practitioner oriented and highly evangelical and universally prescriptive in tone, the service quality management literature adopts a more measured and academically rigorous approach, although it is arguably less successful in generating practical solutions for management. While the service quality management literature has clearly been enriched and significantly influenced by the TQM manufacturing literature, it is now contributing to the conceptual development of the core precepts of TQM and nurturing a sensitivity to the contingencies which render their application appropriate. Indeed, as the performance characteristics of services increasingly contribute to the success of manufacturing organisations, the issue in future may well be the conceptual transferability of TQM from service to manufacturing.

Details

International Journal of Quality & Reliability Management, vol. 15 no. 3
Type: Research Article
ISSN: 0265-671X

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Article
Publication date: 11 September 2018

Khadijeh Momeni and Miia Martinsuo

The purpose of this paper is to better understand the efficient use of remote monitoring systems (RMS) to create business value for industrial services in manufacturing

Abstract

Purpose

The purpose of this paper is to better understand the efficient use of remote monitoring systems (RMS) to create business value for industrial services in manufacturing firms. A business view to RMS is a key prerequisite for the successful application of the Internet of Things (IoT) in industrial services.

Design/methodology/approach

A qualitative multiple-case study was conducted in six engineering companies. The main source of data was semi-structured interviews with 16 managers.

Findings

The findings highlight the role of RMS in enabling manufacturing firms to collect data from customers to complement their limited knowledge about their customers. The study demonstrates the business value of using RMS in industrial services and the necessity of capturing the business value through advanced IT technologies.

Research limitations/implications

The qualitative research design and choice of six target companies limit the findings to business-to-business manufacturing firms. Further, the focus is on the manager’s viewpoint. The findings imply new business value through an efficient use of RMS to complement direct customer contact.

Practical implications

The study draws attention to the skilled use of advanced RMS and information and communication technology as a prerequisite for the successful application of the IoT in manufacturing firms that provide services for complex solutions and customers dispersed globally.

Originality/value

The research shows that using information collected through RMS is an important factor in creating business value in a manufacturing firm’s customer relationships. The study contributes by integrating RMS into the customer information collection process to increase the amount, validity and quality of data.

Details

Journal of Business & Industrial Marketing, vol. 33 no. 6
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 1 October 2000

Kin Chung Woon

In recent years, total quality management (TQM) has been applied extensively in service organisations. Several studies have been undertaken to compare the TQM…

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2095

Abstract

In recent years, total quality management (TQM) has been applied extensively in service organisations. Several studies have been undertaken to compare the TQM implementation levels in services and manufacturing. However, none has differentiated the service categories adequately. This paper compares the TQM implementation levels in Singapore’s service and manufacturing productivity leaders after differentiating the services and controlling for extraneous factors. The analysis makes use of secondary data obtained from the pioneer batch of 240 organisations in the Singapore Quality Award programme. The service organisations are found to have a significantly lower level of TQM implementation than the manufacturing‐oriented service and the manufacturing organisations. The findings provide decision‐makers an indication of the areas that should be addressed to boost TQM in the service organisations. They also support the argument in the theoretical literature that the various service categories should be differentiated to yield meaningful results and suggest appropriate policies.

Details

Managing Service Quality: An International Journal, vol. 10 no. 5
Type: Research Article
ISSN: 0960-4529

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Article
Publication date: 5 February 2018

Zhi Li, W.M. Wang, Guo Liu, Layne Liu, Jiadong He and G.Q. Huang

The purpose of this paper is to propose a cross-enterprises framework to achieve a higher level of sharing of knowledge and services in manufacturing ecosystems.

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4235

Abstract

Purpose

The purpose of this paper is to propose a cross-enterprises framework to achieve a higher level of sharing of knowledge and services in manufacturing ecosystems.

Design/methodology/approach

The authors describe the development of the emerging open manufacturing and discuss the model of knowledge creation processes of manufacturers. The authors present a decentralized framework based on blockchain and edge computing technologies, which consists of a customer layer, an enterprise layer, an application layer, an intelligence layer, a data layer, and an infrastructure layer. And a case study is provided to illustrate the effectiveness of the framework.

Findings

The authors discuss that the manufacturing ecosystem is changing from integrated and centralized systems to shared and distributed systems. The proposed framework incorporates the recent development in blockchain and edge computing that can meet the secure and distributed requirements for the sharing of knowledge and services in manufacturing ecosystems.

Practical implications

The proposed framework provides a more secure and controlled way to share knowledge and services, thereby supports the company to develop scalable and flexible business at a lower cost, and ultimately improves the overall quality, efficiency, and effectiveness of manufacturing services.

Originality/value

The proposed framework incorporates the recent development in edge computing technologies to achieve a flexible and distributed network. With the blockchain technology, it provides standards and protocols for implementing the framework and ensures the security issues. Not only information can be shared, but the framework also supports in the exchange of knowledge and services so that the parties can contribute their parts.

Details

Industrial Management & Data Systems, vol. 118 no. 1
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 4 December 2019

Bishwanath Goldar

The purpose of this paper is to analyse econometrically determinants of total factor productivity (TFP) in Indian manufacturing plants with a focus on the influence of…

Abstract

Purpose

The purpose of this paper is to analyse econometrically determinants of total factor productivity (TFP) in Indian manufacturing plants with a focus on the influence of services input on productivity.

Design/methodology/approach

Plant-level data drawn from Annual Survey of Industries for the years 1998-1999 to 2012-2013 are used for the estimation of TFP at plant-level by applying the Levinsohn–Petrin methodology. Econometric models are estimated to explain variations in plant-level TFP. The explanatory variables used are services input intensity (split into manufacturing services purchased and other services), the share of information communication technology (ICT) assets in total fixed capital stock, the share of contract workers in total workers and the share of imported materials out of total materials used, with plant size taken as a control variable. Model estimation is done by applying the fixed effects model.

Findings

Econometric results indicate that services input and ICT intensity have a significant positive effect on productivity of manufacturing plants in India. Use of imported materials raises productivity, whereas the use of contract workers in place of regular workers tends to lower productivity. The impact of imported materials on TFP of manufacturing plants seems to be relatively bigger for labour-intensive, low technology industries.

Originality/value

Care has been taken for TFP measurement. Analysis of the impact of services input on TFP has been undertaken for Indian manufacturing using plant-level data for the first time.

Details

Indian Growth and Development Review, vol. 13 no. 1
Type: Research Article
ISSN: 1753-8254

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Article
Publication date: 1 August 1998

David E. Bowen and William E. Youngdahl

The desirability of transferring manufacturing logic and practices to service operations, strongly advocated by Levitt (1972; 1976) in two classic Harvard Business Review

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19445

Abstract

The desirability of transferring manufacturing logic and practices to service operations, strongly advocated by Levitt (1972; 1976) in two classic Harvard Business Review articles two decades ago, is now commonly challenged by both service researchers and practitioners. We defend a “production‐line approach to service” by arguing that services can “reindustrialize” by applying revised, progressive manufacturing technologies. We describe how services businesses such as Taco Bell, Southwest Airlines, and Shouldice Hospital have mastered what we call “lean” service ‐ the application of lean manufacturing principles to their own service operations. Overall, services tend to be innovation laggards, compared to manufacturing. Looking ahead, mass customization can be viewed as the convergence of service and manufacturing logic.

Details

International Journal of Service Industry Management, vol. 9 no. 3
Type: Research Article
ISSN: 0956-4233

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Article
Publication date: 28 May 2019

Bang-Ning Hwang and Mu-Yen Hsu

For most manufacturing firms, technological innovations are usually the key strategies to gain their competitive advantages. However, competing strategically through…

Abstract

Purpose

For most manufacturing firms, technological innovations are usually the key strategies to gain their competitive advantages. However, competing strategically through service provision is becoming an important strategy for most industries. A growing demand for packaged product and service delivery is blurring the traditional boundaries between manufacturing and service firms. This trend is called “servitization.” Prior research had different perspectives on the relationship between technological innovations and servitization. Some argued that as servitization exerts the innovative convergence of products and services, the possession of appropriate readiness and absorption capacity through technological innovations for a manufacturing firm is critical to the success of servitization. In contrast, some argued that the knowledge gained from developing technological innovations cannot be applied to the creation of services due to the fundamental difference between technology and service. These contradicting arguments motivated the authors to study the relationship between technological innovations and servitization a step further. The paper aims to discuss these issues.

Design/methodology/approach

To address the research gap, the authors conducted an empirical study based on the large-scale samples from the second Taiwan Community Innovation Survey (Taiwan CIS). A multivariate logistic regression model was applied in the research.

Findings

The authors found that different types of technological innovations, namely product innovation and process innovation, have different impacts on servitization. The innovativeness level of the technological innovation moderates the relationship between technological innovation and servitization. Based on the above findings, this research specifically explains the causes of the contradictory results of the prior research.

Originality/value

The values of this research are twofold. Its academic contribution rests on bridging the literature of innovation and servitization, and on providing a model to clarify the relationships among technological innovation type, level of innovativeness and servitization. Its practical contribution lies in its establishment of a guideline that illuminates manufacturing firms reinforcing service delivery through their existing technological innovation trajectory.

Details

Journal of Manufacturing Technology Management, vol. 30 no. 7
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 9 March 2012

Heiko Gebauer, Guang‐Jie Ren, Aku Valtakoski and Javier Reynoso

The purpose of this paper is to provide a review of key research contributions on the topic of service strategies in manufacturing by focusing on descriptions of the…

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3896

Abstract

Purpose

The purpose of this paper is to provide a review of key research contributions on the topic of service strategies in manufacturing by focusing on descriptions of the phenomenon and theoretical explanations of its evolution and financial consequences.

Design/methodology/approach

A summary analysis of the extant literature is provided. Valuable contributions and fundamental methodological issues are identified and discussed. Challenges, limitations and directions for future research avenues are also highlighted.

Findings

As a result of the analysis and discussion presented, the concept of service‐driven manufacturing is integrated through the provision, evolution and impact of services in industrial settings.

Practical implications

The paper contains guidelines for manufacturing managers interested in the evolution from products to services in different industries.

Originality/value

The paper is expected to be used as a relevant source of ideas and guidance for all those interested in doing research in services strategies in manufacturing.

Details

Journal of Service Management, vol. 23 no. 1
Type: Research Article
ISSN: 1757-5818

Keywords

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