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Article
Publication date: 6 March 2018

Sambit Lenka, Vinit Parida, David Rönnberg Sjödin and Joakim Wincent

The dominant-view within servitization literature presupposes a progressive transition from product to service orientation. In reality, however, many manufacturing firms…

1383

Abstract

Purpose

The dominant-view within servitization literature presupposes a progressive transition from product to service orientation. In reality, however, many manufacturing firms maintain both product and service orientations throughout their servitization journey. Using the theoretical lens of organizational ambivalence, the purpose of this paper is to explore the triggers, manifestation and consequences of these conflicting orientations.

Design/methodology/approach

A multiple case study method was used to analyze five large manufacturing firms that were engaged in servitization. Semi-structured interviews were conducted with 35 respondents across different functions within these firms.

Findings

Servitizing firms experience organizational ambivalence during servitization because of co-existing product and service orientations. This paper provides a framework that identifies the triggers of this ambivalence, its multi-level manifestation and its consequences. These provide implications for explaining why firms struggle to implement servitization strategies due to co-existing product and services orientations. Understanding organizational ambivalence, provides opportunity to manage related challenges and can be vital to successful servitization.

Originality/value

Considering the theoretical concept of ambivalence could advance the understanding of the effects and implications of conflicting orientations during servitization in manufacturing firms.

Details

International Journal of Operations & Production Management, vol. 38 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 3 August 2021

Birgit Andrine Apenes Solem, Marko Kohtamäki, Vinit Parida and Thomas Brekke

The present study sets out to understand how a manufacturing company in the maritime industry utilized creative design principles and developed service design routines to…

Abstract

Purpose

The present study sets out to understand how a manufacturing company in the maritime industry utilized creative design principles and developed service design routines to advance digital servitization (i.e. the transition to offering smart product-service-software systems–PSS) and realize subsequent positive growth outcomes.

Design/methodology/approach

We build upon a longitudinal single case of a marine solution provider. Using an action research approach, we collected data through in-depth interviews and informal conversations involving senior managers, project members and customer representatives over a three and a half-year period. In addition, secondary data such as documentary data, service design tools and visualization were utilized.

Findings

The inductive analysis highlights the underlining role of four service-design routines that drive creativity and an innovative approach to digital servitization transformation. More specifically, we identify (a) user insights through creative customer data acquisition, (b) smart PSS collaboration through co-creation across departments, (c) smart PSS ideation through creative forms of collaboration and (d) effective smart PSS delivery and commercialization through creative concept design as the drivers of the case company digital servitization transformation.

Practical implications

We encourage senior managers within large manufacturing companies to promote the development of service design routines as these promote the transformation process from being a product-centric to service-centric firm. The four service design routines are built on a set of service design sub-activities providing concrete actions that can be applied by senior managers to successfully develop and deliver smart PSS offerings and achieve growth outcomes.

Originality/value

This study contributes by integrating digital servitization and service design literatures. We illustrate how manufacturing firms can drive a transition to digital servitization through service design activities and routines development for smart PSS strategy implementation.

Details

Journal of Manufacturing Technology Management, vol. 33 no. 4
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 6 March 2017

Jukka Partanen, Marko Kohtamäki, Vinit Parida and Joakim Wincent

The purpose of this paper is to develop a new scale for measuring the scope (i.e. breadth and depth) of industrial service offering.

1109

Abstract

Purpose

The purpose of this paper is to develop a new scale for measuring the scope (i.e. breadth and depth) of industrial service offering.

Design/methodology/approach

The scale and its constructs are developed by combining the key insights from prior literature and practitioners gained through expert interviews; validating the constructs by 3 item-construct validation rounds with 9 academic experts; and by testing and further revising the scale, with a sample of 91 manufacturing firms.

Findings

The distinct contribution of the study is the construction and validation of a new multi-dimensional scale for operationalizing the scope of industrial service offering. In addition, the identified service categories (i.e. pre-sales services, product support services, product life-cycle services, R&D services and operational services) extend the current literature on service typologies.

Research limitations/implications

The data are somewhat biased toward small- and medium-sized industrial firms. Hence, the development of the measurement in the context of large industrial firms provides one fruitful avenue for further research.

Practical implications

For managers of industrial firms, the identified service categories provide novel insight on how to develop, bundle and commercialize industrial services to their varying customer segments.

Originality/value

This study develops a multi-dimensional, fine-grained, statistical and relationship-level scale for measuring the scope of industrial service business. Moreover, this study tests and further develops the scale with quantitative empirical data.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Open Access
Article
Publication date: 16 December 2021

Milad Kolagar, Wiebke Reim, Vinit Parida and David Sjödin

The purpose of this study is to understand how digital servitization enables the process of internationalization for industrial SMEs.

1867

Abstract

Purpose

The purpose of this study is to understand how digital servitization enables the process of internationalization for industrial SMEs.

Design/methodology/approach

The present study has adopted an exploratory multiple case study, conducting a total of 40 interviews in a two-phased approach to data collection. The first phase consisted of exploratory interviews with twenty-six industrial SMEs connected to the manufacturing industry in Sweden and Finland. Then, six SMEs were selected in the second phase to participate in additional in-depth interviews.

Findings

First, this study identifies three gradual enabling phases concerned with the digital service maturity of SMEs consisting of digital awareness, digital service innovation and digital service mass customization. Second, the three interdependent phases of ecosystem knowledge synergy, ecosystem integration and ecosystem value co-creation were identified to improve ecosystem involvement. Finally, a process framework has been developed for SME internationalization consisting of a digital servitization innovation strategy, a digital servitization ecosystem strategy and a digital servitization scaling strategy.

Originality/value

The present research contributes to how digital servitization enables SME internationalization by demonstrating how the development of digital service offerings and ecosystem partnerships supports the internationalization process. This research extends the literature by proposing a process framework for the digital-servitization-enabled internationalization of SMEs. This process perspective provides a richer explanation of the complex interplay between servitization, digitalization and ecosystems choices, which supports the expansion into international markets.

Details

Journal of Service Management, vol. 33 no. 1
Type: Research Article
ISSN: 1757-5818

Keywords

Open Access
Article
Publication date: 1 June 2021

Yihua Chen, Ivanka Visnjic, Vinit Parida and Zhengang Zhang

The authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart…

3647

Abstract

Purpose

The authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart solutions. Specifically, the authors focus on changes in the business model (i.e. the value proposition, the value delivery system and the value capture mechanism) for digital servitization.

Design/methodology/approach

The authors examine a Chinese air conditioner manufacturer, Gree, who became the global leader with their smart solutions. These solutions included performance-based contracts underpinned by artificial intelligence (AI)-powered air conditioners that automatically adjust to environmental changes and are capable of remote monitoring and servicing thanks to its Internet of things (IoT) technology.

Findings

To successfully offer smart solution value propositions, a manufacturer needs an ecosystem value delivery system composed of suppliers, distributors, partners and customers. Once the ecosystem relationships are well aligned, the manufacturer gains value with multiple value capture mechanisms (i.e. efficiency, accountability, shared customer value and novelty). To arrive at this point, a manufacturer has to pass through different stages that are characterized by both discontinuous and continuous interplay between business models and digital technologies. At the beginning of each stage, new value propositions and value delivery systems are first discontinuously created and then enabled with digital technology. As a result, new value capture mechanisms are activated. Meanwhile, the elements of the existing business model are continuously improved.

Research limitations/implications

By combining process-perspective and business-model lenses, the authors offer nuanced insights into how digital servitization unfolds.

Practical implications

Executives can obtain insights into the business model elements, they need to change over the course of digital servitization and how to manage the process.

Originality/value

A longitudinal case study of a traditional manufacturer that has achieved stellar success through digital servitization business models development.

Details

International Journal of Operations & Production Management, vol. 41 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 16 August 2021

Raghu Nandan Chawla and Praveen Goyal

Ubiquitous digital technologies are driving organisations to embrace non-traditional digitally transformed business models incessantly. Heterogeneous literature…

1368

Abstract

Purpose

Ubiquitous digital technologies are driving organisations to embrace non-traditional digitally transformed business models incessantly. Heterogeneous literature contributions have resulted in a spur in the research related to business transformation driven by digital technologies in recent years; consequently, the research under the digital transformation (DT), even though becoming a hotspot, remains very fragmented. The authors endeavour to holistically present the literature's intellectual structure under DT as a concept, its evolving journey and the emerging research streams in the business and management domains using the techniques of bibliometric analysis.

Design/methodology/approach

By performing bibliometric analysis on 234 research articles published over the last 20 years in the DT domain, retrieved from Thompson Reuters Web of Science TM, this study culls out thorough insights from the citation, co-citation and keyword analysis. Further emerging research streams were evaluated using VOSviewer software.

Findings

The study depicts an overall incremental trend of year-on-year publications, authors' performance, publication journals, associated institutions and research driving countries, along with key insights from co-citation network analysis. Furthermore, the study evaluates four research areas – organisational impacts, applied applications and insights, operational processes and social aspects, comprising eighteen research streams that comprehensively cover-up research under the DT domain.

Research limitations/implications

The study contributes to the literature of DT by amalgamating the status of the present research, but more importantly, by deriving the research areas and research streams, which can be further expanded by researchers as future research streams.

Practical implications

For the practitioners, the study aims to act as a ready reckoner repository with practice-oriented literature references to facilitate them building knowledge and taking effective strategic decisions to harness the benefits of DT more proficiently.

Originality/value

This study illustrates the bibliometric structure of the DT literature and presents insights from the growth of the literature year-on-year.

Details

Benchmarking: An International Journal, vol. 29 no. 4
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 7 March 2016

Vinit Parida, Pejvak Oghazi and Stefan Cedergren

Prior studies have argued that small firms with dynamic capabilities can revise and reconfigure their internal resources to meet the uncertainties of their business…

2867

Abstract

Purpose

Prior studies have argued that small firms with dynamic capabilities can revise and reconfigure their internal resources to meet the uncertainties of their business environment. However, there is a lack of understanding of how they can develop such critical capabilities. The purpose of this paper is to propose that small firms can employ information and communication technology (ICT) capabilities as a facilitator for developing dynamic capabilities. Thus, the study builds on resource-based view (RBV) literature and information systems (IS) literature by examining the influence of ICT capabilities on the dynamic capabilities of small firms.

Design/methodology/approach

Several hypotheses were tested by analysing the survey data from 291 small high-technology firms in Sweden.

Findings

The results reveal that ICT capabilities influence dynamic capabilities of small firms. More specifically, the ICT use for internal efficiency positively influences adoptive capabilities, collaborative use of ICT positively influences networking capabilities, and ICT use for communications positively influences both adaptive and innovation capabilities. Consequently, the results suggest that the different components of ICT capabilities facilitate the development of the different organizational capabilities that together represent dynamic capabilities and thus, can contribute to a small firm’s competitive advantage.

Practical implications

This study has few implications for the managers and CEO’s of small high-technology firms. First, by prioritizing ICT capabilities, small firms can benefit from the development of dynamic capabilities that will support them to meet the challenges of turbulent business environment. Second, because small firms usually lack internal resources (i.e. financial resources and competence), the study provides more specific direction on how they can strategically invest and build different components of ICT that will positively influence their adaptive, absorptive, innovative, and network capabilities.

Originality/value

The study provides an alternative view of how ICT capabilities influence the performance of small firms, and outlines how such capabilities influence the development of dynamic capabilities. Therefore, the study in hand contributes to the RBV and IS literature by specifically linking the components of ICT capabilities to dynamic capabilities and its related sub-capabilities.

Details

Journal of Enterprise Information Management, vol. 29 no. 2
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 6 June 2016

Wiebke Reim, Vinit Parida and David Rönnberg Sjödin

The purpose of this paper is to propose a product-service systems (PSS) risk management decision-making framework for PSS operation, which can enable global manufacturing…

3853

Abstract

Purpose

The purpose of this paper is to propose a product-service systems (PSS) risk management decision-making framework for PSS operation, which can enable global manufacturing companies to offer PSS successfully. Thus, the authors aim to contribute primarily to developing the PSS literature by integrating insights from the literatures on risk management and decision making.

Design/methodology/approach

This study is based on an exploratory, single case study with a Swedish manufacturing company that has long-term experience with providing PSS. In total, the authors conducted 25 semi-structured interviews with diverse respondents from different functional units.

Findings

The study’s main findings include identifying and proposing an interconnection between the operational risks associated with providing PSS, possible risk management responses, and decision criteria, all of which enable decision makers to select an appropriate risk management response.

Research limitations/implications

The study contributes to the literature in three ways. First, the authors classify PSS operational risks into three categories related to delivery competence risks, technical risks, and behavioural risks. Second, the authors explain conditions under which each risk can be mitigated using different risk management strategies (avoidance, reduction, sharing/transfer, and retention). Finally, the authors combine different risk categorizations, decision criteria, and risk responses into an integrated decision framework of PSS risk management.

Originality/value

The novel contribution is developing a PSS risk management decision support framework, which holds theoretical and practical value.

Details

International Journal of Operations & Production Management, vol. 36 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 13 July 2015

Marko Kohtamaki, Henri Hakala, Jukka Partanen, Vinit Parida and Joakim Wincent

Product-manufacturing firms are increasingly positioning themselves as providers of industrial services and solutions. Despite the increasing conceptual interest in…

2281

Abstract

Purpose

Product-manufacturing firms are increasingly positioning themselves as providers of industrial services and solutions. Despite the increasing conceptual interest in industrial services, empirical evidence about the factors that mediate the relationships between industrial services and firm performance remains limited. The purpose of this paper is to investigate the relationship between industrial service offerings, service orientation and firm sales and profit performance.

Design/methodology/approach

The study uses data from 115 manufacturing firms and adopts a structural equation modeling technique to test a set of hypotheses on service offerings, service orientation and company sales and profit performance.

Findings

The results underline the importance of implementing service orientation in employees’ behavior, recruitment, training, and assessment. Service orientation is demonstrated as an essential mediator for the relationship between service offerings, revenues, and profits. The results therefore suggest that both service offerings and service orientation are important when manufacturing companies attempt to position themselves as industrial service providers.

Research limitations/implications

Given the limitations of the sample collected from the Finnish manufacturing industry, future studies could refine the measures and investigate the applicability of the results in other contexts.

Practical implications

The results suggest that developing a service orientation is vital for manufacturing companies to profit from increased offerings of industrial services. Because nurturing service orientation is a central enabler of the impact of service offerings on sales and profit performance, it is in the interests of manufacturing firms moving towards a servitized business model to develop training, compensation, and recruitment policies.

Originality/value

The study establishes a link between service offerings, service orientation, sales, and profit performance in manufacturing firms. This is among the first studies to provide statistical evidence to support claims that even manufacturing firms can benefit from developing integrated product-service solutions.

Details

Journal of Service Theory and Practice, vol. 25 no. 4
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 1 June 2015

Johanna Wallin, Vinit Parida and Ola Isaksson

Manufacturing companies are increasingly making efforts to combine products and services into integrated offerings. However, the companies’ success in such transformation…

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Abstract

Purpose

Manufacturing companies are increasingly making efforts to combine products and services into integrated offerings. However, the companies’ success in such transformation is linked with the presence of structured routines and processes, which the authors conceptualize as product-service systems (PSS) innovation capabilities. The purpose of this paper is to address the important question of how manufacturing companies can systematically build PSS innovation capabilities and does its presence or absence significantly influence PSS innovation.

Design/methodology/approach

This study is based on longitudinal data from an aerospace company, which acts both as an OEM providing through-life services for aircraft engines, as well as a developer of innovative subsystem technologies. Data has been collected over three years (2009-2012) and constitutes 40 in-depth explorative and semi-structured interviews with diverse respondents. For analysis of the data, the authors have used constant comparison technique leading to identification of three high-order categories. In addition, the authors gain from observations and secondary data which enable to achieve data triangulation and data validity.

Findings

The results objectively depict an overview of how the case company developed PSS innovation capabilities, though progression of routines over three early PSS development stages. More specifically, the authors find evidence for development of formalized routines related to customer interaction and innovative organizational climate during need phase, cross-functionality, and network partnering during solution-seeking phase, and competence and business case development during solution development phase. As these routines become more structured within the case company, they forge a path for PSS innovation capabilities development.

Originality/value

This study provides two distinctive contributions to emerging PSS literature. First, the authors propose and explain how PSS innovation capabilities are developed. Although prior studies acknowledge the importance of possessing specialized PSS innovation capabilities, limited studies have reported empirically how they are developed. Second, through adopting a longitudinal perspective, the authors reveal key routines and actions that drive PSS innovation during different development stages. To the knowledge, no prior study has combined insights from PSS literature and resource-based view to objectively explain capabilities development process.

Details

Journal of Manufacturing Technology Management, vol. 26 no. 5
Type: Research Article
ISSN: 1741-038X

Keywords

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