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Article
Publication date: 12 December 2019

Hamilton Terni Costa, Fernanda Ribeiro Cahen and Juliana Bonomi Santos

The purpose of this paper is to explore how home-country institutions influence firms’ servitization decisions. Existing studies have mostly neglected differences across…

Abstract

Purpose

The purpose of this paper is to explore how home-country institutions influence firms’ servitization decisions. Existing studies have mostly neglected differences across countries and implicitly assumed the servitization process and drivers are homogenous across national institutional environments. The authors challenge this assumption.

Design/methodology/approach

Using case-based research, the authors explored the influence of formal institutions of the product, financial and labor markets on the servitization of two firms operating in a developed country and two in an emerging country.

Findings

The absence of robust home-country institutions did not necessarily hinder the servitization process. On the contrary, firms servitizate to overcome the difficulties posed by these institutional voids. The flexibility associated with service offerings enables firms to create viable alternatives to cope with taxes, lack of infrastructure and qualified labor force.

Originality/value

These outcomes contribute to the servitization literature, which has mainly focused on single-country studies and takes for granted the institutional differences between countries. The findings suggest future studies need to consider how and, to what extent, the country where the company is located influences servitization strategies and processes. Such reflections will improve the inferences made concerning firms’ servitization. For practitioners, the results suggest that the move into the provision of services can be a fruitful strategy to overcome the difficulties faced in emerging markets.

Details

International Journal of Emerging Markets, vol. 15 no. 4
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 31 October 2018

Soyeon Kim and Keiko Toya

Given the emergence of servitization as a viable strategy for manufacturers to gain a competitive advantage, determining what factors influence effective servitization is…

Abstract

Purpose

Given the emergence of servitization as a viable strategy for manufacturers to gain a competitive advantage, determining what factors influence effective servitization is imperative. Drawing on organizational change and leadership theories, the purpose of this paper is to identify the leadership styles required for successfully implementing servitization in Japan.

Design/methodology/approach

Via stratified sampling method, 5,000 Japanese manufacturers registered in the Tokyo Chamber of Commerce and Industry were selected for participation in a mail survey. Survey data from 187 responding CEOs were matched with firm-level archival data, after which the matched data were analyzed.

Findings

The findings indicated that industry type is important in implementing servitization, but firm size and performance are not. The results also revealed that charismatic leadership style is especially critical in implementing and elevating servitization, whereas autocratic and autonomous leadership styles impede this process.

Research limitations/implications

The study fills a gap in the literature by identifying a notable relationship between leadership style and servitization. Because the study was conducted in an Asian economic context, which has received less attention in servitization research, it advances the existing body of research on servitization by breaking the former geographical constraints in this field of studies.

Practical implications

This study presents practical implications for Japanese manufacturers who wish to devise a strategic leadership plan in the servitization process. CEOs of the firms can initiate the transition to servitization by employing charismatic leadership skills and convincing employees of the benefits of the change.

Originality/value

The research is distinguished from existing studies in that it provides the first empirical evidence on effective CEO leadership styles for servitization in Japanese manufacturing firms.

Details

Journal of Manufacturing Technology Management, vol. 30 no. 2
Type: Research Article
ISSN: 1741-038X

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Article
Publication date: 6 February 2017

Tim Baines, Ali Ziaee Bigdeli, Oscar F. Bustinza, Victor Guang Shi, James Baldwin and Keith Ridgway

The purpose of this paper is to consolidate the servitization knowledge base from an organizational change perspective, identifying developed, developing and undeveloped…

Abstract

Purpose

The purpose of this paper is to consolidate the servitization knowledge base from an organizational change perspective, identifying developed, developing and undeveloped topics to provide a platform that directs future research.

Design/methodology/approach

This paper addresses three objectives: it comprehensively examines organizational change management literature for selection of a theoretical framework; it classifies extant studies within the framework through a systemic literature review; and it analyses 232 selected papers and proposes a research agenda.

Findings

Analysis suggests increasing global awareness of the importance of services to manufacturers. However, some topics, especially related to servitization transformation, remain undeveloped.

Research limitations/implications

Although the authors tried to include all publications relevant to servitization, some might not have been captured. Evaluation and interpretation relied on the research team and subsequent research workshops.

Practical implications

One of the most significant challenges for practitioners of servitization is how to transform a manufacturing organization to exploit the opportunity. This paper consolidates literature regarding servitization, identifying progress concerning key research topics and contributing a platform for future research. The goal is to inform research to result eventually in a roadmap for practitioners seeking to servitize.

Originality/value

Although extant reviews of servitization identify themes that are examined well, they struggle to identify unanswered questions. This paper addresses this gap by focusing on servitization as a process of organizational change.

Details

International Journal of Operations & Production Management, vol. 37 no. 2
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 3 May 2021

Mark Johnson, Jens K. Roehrich, Mehmet Chakkol and Andrew Davies

This research bridges disparate research on servitization, namely product–service systems (PSS) and integrated solutions (IS), to provide valuable insights for the…

Abstract

Purpose

This research bridges disparate research on servitization, namely product–service systems (PSS) and integrated solutions (IS), to provide valuable insights for the progression of the field. It acts as a reconciliation of these research streams and offers a reconceptualised agenda incorporating recent research on platforms, ecosystems, modularity, risk and governance as key conceptual themes to synthesise and build theory.

Design/methodology/approach

This is a conceptual, theory development article focused on advancing thinking on servitization by identifying systematic and theoretically informed research themes. It also proposes future research opportunities to advance theoretical contributions and practical implications for servitization research.

Findings

By reviewing and synthesising extant PSS and IS research, this article identified five core themes – namely modularity, platforms, ecosystems, risks and governance. The importance of these five themes and their linkages to PSS and IS are examined and a theoretical framework with a future research agenda to advance servitization is proposed.

Originality/value

This paper considers the similarities and differences between PSS and IS in order to develop a theory and to reconcile formerly disparate research efforts by establishing linkages between core themes and identifying valuable synergies for scholars. The importance of the core themes and current gaps within and across these themes are shown, and a mid-range theory for servitization is positioned to bridge the servitization-related PSS and IS communities.

Details

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

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Book part
Publication date: 27 October 2015

Benoît Demil and Xavier Lecocq

Business models can be considered as cognitive models that managers or analysts can use to describe, understand, or test business activities. However, the emergence of a…

Abstract

Business models can be considered as cognitive models that managers or analysts can use to describe, understand, or test business activities. However, the emergence of a new business model requires not only cognitive operations but also concrete modifications to the realities of a company’s operations and structures. In this paper, we adopt a sociomaterial view of organizational change based on actor-network theory, and underline the role of artifacts in the emergence of new business models. We base our discussion on a case study of a French leader in kitchen electric appliances. Despite the fact that the building of its new business model is still in progress, this empirical study provides important suggestions concerning the role of artifacts.

Details

Business Models and Modelling
Type: Book
ISBN: 978-1-78560-462-1

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Article
Publication date: 5 October 2018

José L. Ruiz-Alba, Anabela Soares, Miguel A. Rodríguez-Molina and Dolores M. Frías-Jamilena

This paper aims to investigate the moderating role of co-creation in the implementation of servitization strategies in the pharmaceutical industry in a…

Abstract

Purpose

This paper aims to investigate the moderating role of co-creation in the implementation of servitization strategies in the pharmaceutical industry in a business-to-business (B-to-B) context. More specifically, this investigation explores the impact of different levels of services (base, intermediate and advanced) on servitization and on performance by using co-creation as a moderating factor.

Design/methodology/approach

A research framework was developed and empirically tested in the pharmaceutical sector. Data collection was conducted through the online distribution of questionnaires. The final sample included 219 pharmacy stores, and the data were analysed using structural equation modelling.

Findings

Main findings suggest that when the level of co-creation of the design of services is high, there are significant effects of servitization on firm performance. The moderating effect of co-creation is illustrated in regard to intermediate and advanced services, but results referring to the impact of intermediate services on servitization appear non-significant with a low degree of co-creation. No significant effects could be found for the impact of base services on performance and servitization for both high and low degrees of co-creation. Findings show an impact of advanced services on performance through the mediating effect of servitization when the degree of co-creation is high.

Originality/value

Most research concerning servitization has been done from the perspective of manufacturers and service providers. This study adds value to the literature because it was designed from a customer’s perspective. Moreover, it contributes towards the conceptualization of the servitization research strategy and business models in a B2B context. This is accomplished through the investigation of the moderating effect of co-creation on the impact of the different levels of services on servitization and on performance.

Details

Journal of Business & Industrial Marketing, vol. 34 no. 3
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 4 December 2020

Scott Wagstaff, Jamie Burton and Judith Zolkiewski

This paper focusses on the darker side of the dynamics of servitization by exploring the tensions and territoriality that emerge between manufacturers and customers during…

Abstract

Purpose

This paper focusses on the darker side of the dynamics of servitization by exploring the tensions and territoriality that emerge between manufacturers and customers during the servitization process in the oil industry.

Design/methodology/approach

The Delphi method is used to explore the perspectives of three management tiers in oil organisations and the manufacturers who work with them. The views of these managers were synthesized over three iterations: semi-structured interviews, a questionnaire and resolution/explanation, where consensus was not obtained.

Findings

The findings of the study highlight perceptions of change, resulting tensions and territoriality and the impact of management commitment, resources and strategy. They reveal significant differences between customers and their suppliers and different management levels and highlight territorial behaviour and the negative impact this has on buyer supplier relationships during the implementation of servitization.

Research limitations/implications

Further research is required to explore why there is a variation in understanding and commitment at different managerial levels and the causes of tensions and territoriality.

Practical implications

Servitization is not a “quick fix” and management support is essential. A fundamental element of this planning is to anticipate and plan for tensions and territoriality caused by the disruption servitization creates.

Originality/value

The research provides empirical evidence of tensions and territoriality relating to servitization that potentially can damage supplier–buyer relationships and suggest that there is a darker side to servitization. It also shows that differences in strategic intent across organizations and between different managerial layers impedes to servitization efforts.

Details

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

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Article
Publication date: 1 September 2006

Lv Na and W.S. Lightfoot

This paper sets out to analyze the determinants of foreign direct investment (FDI) on both the country and regional level through the extensive review of past research…

Abstract

Purpose

This paper sets out to analyze the determinants of foreign direct investment (FDI) on both the country and regional level through the extensive review of past research studies, as well as through the development of a multiple regression model for identifying key determinants of FDI at the regional level in China during the critical year of 2002.

Design/methodology/approach

The development of a multiple regression model to identify statistically significant determinants of FDI by region in China.

Findings

As reforms continue to take place, FDI in China has been unevenly distributed. This paper examines five potential determinants of FDI in 30 regions (including provinces, centrally controlled municipalities, and semi‐autonomous regions) of China using a regression model. The specific focus is on 2002, as it is the first full year after China's accession to the World Trade Organization, and the first year in which China exceeded the USA in attracting FDI. From this initial study, one can conclude that the government should consider encouraging capital‐intensive FDI through the further development of a skilled workforce. This means increasing funding for higher education, and infrastructure, while also encouraging more openness in state‐owned enterprises. This paper sets up further research that may help expose regions with greater potential for FDI, as well as identifying regions which need to improve certain conditions in order to receive more FDI.

Originality/value

This paper analyzes the determinants of FDI by region in China in 2002. This year is particularly interesting as it is both the first full year after China's accession to the World Trade Organization, as well as the first year in which FDI was greater in China than in the USA While this research study is only a snap shot of a topic that is of increasing importance to China, it has direct relevance to the FDI development efforts of the individual regions. This study provides evidence that GDP that proxies for the market size and potential is shown to be a big attraction for FDI. Labor quality and the progress of reform or the degree of openness are also important determinants of the distribution of FDI. There is some mild evidence that high labor cost deters the inflow of FDI and the level of infrastructure has positive relation to FDI. These results have important implications for both the central and regional governments as they can be useful in helping the authorities to allocate funds and resources which will help attract FDI.

Details

Journal of Technology Management in China, vol. 1 no. 3
Type: Research Article
ISSN: 1746-8779

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Article
Publication date: 12 August 2021

Scott Wagstaff, Jamie Burton and Judy Zolkiewski

An abundance of literature suggests that organisations adopting a cooperative approach achieve greater rewards than those that act in opposition or isolation. An emerging…

Abstract

Purpose

An abundance of literature suggests that organisations adopting a cooperative approach achieve greater rewards than those that act in opposition or isolation. An emerging body of work also highlights the multiple actors involved in servitization. Despite this, in some contexts the benefits of servitization are not apparent. This paper examines business relationships in the oil industry and how they affect levels of servitization.

Design/methodology/approach

A mixed method study employing qualitative and quantitative methods was used to fully explore the context. In the quantitative phase, 48 oil industry specialists responded to a scenario based on game theory. This aimed to determine if the relationships between their respective organisations are cooperative or adversarial. Abduction drove a second qualitative phase. This consisted of a series of semi-structured interviews used to explore the servitization level and influence of servitization on relationships and vice versa.

Findings

The statistical results suggest that all parties used adversarial strategies despite the publicised intent to work cooperatively. The interviews suggested that increasing (decreasing) servitization could increase (decrease) cooperation and, in turn, value co-creation but revealed nuances to this effect. It also adds to our understanding of the darker side of servitization by illustrating the impact of mimetic isomorphism.

Originality/value

The findings add to understanding of the complex dynamics around servitization by showing that it is only at advanced levels of servitization that cooperative behaviour is observed, and base and intermediate levels result in non-cooperative behaviour and thus illustrate the importance of adopting a multi-actor lens to explore servitization.

Details

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

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Article
Publication date: 20 November 2017

Eija Vaittinen, Miia Martinsuo and Roland Ortt

For successful servitization, manufacturing firms must understand how their customers adopt new services. The purpose of this paper is to explore customers’ readiness for…

Abstract

Purpose

For successful servitization, manufacturing firms must understand how their customers adopt new services. The purpose of this paper is to explore customers’ readiness for a manufacturer’s new services to complement its goods. The goal is to increase knowledge of the aspects that manufacturers should consider when bringing new kinds of services to market.

Design/methodology/approach

A qualitative case study design is used to analyze readiness for services and interest in service adoption in three customer firms of a manufacturer. The interview data were collected from 14 persons at customer sites and were content analyzed.

Findings

The results show that readiness – a concept that is often used in the field of technology – is relevant also for the service adoption process. In a business-to-business context, readiness for service adoption concerns the individual and organizational levels, and hence a new dimension of organizational culture and habits had to be added to the concept that originally focuses on individuals. People consider different factors when making consecutive decisions during the service adoption process and these factors can vary even within a company. The cornerstone for new service adoption is the customer firm’s actual need for the service.

Originality/value

The results offer new knowledge about service adoption in a business-to-business context by taking a customer firm’s perspective. They, thus, complement previous studies on the supplier perspective of servitization and service adoption in consumer business. The contributions help manufacturers focus their efforts when bringing new services to market.

Details

Journal of Service Theory and Practice, vol. 28 no. 1
Type: Research Article
ISSN: 2055-6225

Keywords

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