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Purpose
How does business model design play a role in enabling manufacturing firms’ services? This study aims to investigate the impact of two distinct types of business model design, namely, efficiency-centered business model design (EBMD) and novelty-centered business model design (NBMD), and their effects in balanced and imbalanced configurations, on two types of services: product- and customer-oriented services.
Design/methodology/approach
Using matched survey data of 390 top managers and objective performance data of 195 Chinese manufacturing firms, this study uses hierarchical regression, polynomial regression and response surface analysis to test the hypotheses.
Findings
The results show that while EBMD positively affects product-oriented services, NBMD positively affects customer-oriented services. Both types of services exert a significant influence on firm performance. Furthermore, the degree of product- and customer-oriented services increases with an increasing effort level with a balance between EBMD and NBMD. Asymmetrical, imbalanced configuration effects reveal that the degree of product-oriented services is higher when the EBMD effort exceeds the NBMD effort, and the degree of customer-oriented services is higher when the NBMD effort exceeds the EBMD effort.
Originality/value
This study enriches the understanding of designing business models to facilitate service growth in manufacturing firms, ultimately benefiting firm performance. In addition, exploring balanced and imbalanced configurations of EBMD and NBMD offers new insights into business model dual design research.
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Rodoula H. Tsiotsou, Sertan Kabadayi, Jennifer Leigh, Julia Bayuk and Brent J. Horton
This paper seeks to deepen and improve our understanding of business ethics in services by developing a typology that reconciles and integrates disparate and often conflicting…
Abstract
Purpose
This paper seeks to deepen and improve our understanding of business ethics in services by developing a typology that reconciles and integrates disparate and often conflicting ideas and viewpoints while providing practical guidance for ethical decision-making.
Design/methodology/approach
The paper examines current theoretical approaches in ethics to provide an understanding of the ethical theories, how they have been applied and how they have evolved in businesses and marketing. It discusses conceptual issues related to ethical dilemmas and the available typologies.
Findings
Based on the axioms of the Triple-A Framework for Ethical Service Research, the Typology of Ethical Dilemmas in Services (TEDS) is proposed. The typology identifies three types of dilemmas based on four dimensions considering all service interactions guided by normative ethics (virtue, deontological and consequentialism).
Practical implications
The proposed DILEMMAS process illustrates the practical application of TEDS.
Originality/value
This paper extends the ethics and services literature by offering a novel theoretical and practical approach to addressing ethical dilemmas. TEDS is authentic, advances our knowledge and applies to all service organizations that aim to manage ethical dilemmas effectively.
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Marcos Antonio de Araujo Ventura and Dimária Silva e Meirelles
This study examines the use of a dynamic value-based approach to analyze the business model structuration of smart service providers in Brazil, mapping their value creation…
Abstract
Purpose
This study examines the use of a dynamic value-based approach to analyze the business model structuration of smart service providers in Brazil, mapping their value creation, configuration and appropriation strategies, and determining how well-defined their current business models are.
Design/methodology/approach
This is a qualitative study based on semi-structured interviews with entrepreneurs (or CEOs and directors of technology) of seven business ventures in three different phases of business model structuration: (1) academic: companies or innovation and research centers linked to universities; (2) startups: technology-based companies originating from the technological needs of clients, be they new branches of the traditional business of incumbents or new entrants and (3) autonomous service providers whose offerings are related to master’s or doctoral projects.
Findings
We propose a typology of business model structuration with four stages. At first (individual or initial business model), albeit with high skilling of owners, only manual or adaptation services are offered. In the second stage (platform business model), although services offered are oriented toward the entire process automatization of the client (Factory integrated), technologies are restricted to the client company (or even one department) and these clients' needs are mainly data processing and connectivity. In the third stage (scaling digital business model), although the services offered are oriented toward greater digitalization through an entire array of field devices connected to the internet (IoT) and organized in a more formalized structure, the business model is still being constructed, companies in this stage are mainly startups. In the fourth stage (innovation ecosystem business model), the entire manufacturing process is digitized, with integration and network connectivity, both between service providers and the extended supply chain of their clients, and new technologies are customized and developed through the interaction of a whole innovation ecosystem.
Research limitations/implications
Mapping value-based strategies aids in understanding business model structuration in Industry 4.0. Future research should focus on parameterizing the dimensions founded of each value strategy.
Originality/value
This study advances the comprehension of the business model in |Industry 4.0 by providing a value-based strategy perspective of business model structuration. Practically, by focusing on smart service providers, it contributes to a greater understanding of smart service providers in Brazil and their strategic challenges.
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From a firm-centric perspective, this study aims to elaborate on the types of servitisation strategies that can support a firm’s circular ambitions by asking: What is the role of…
Abstract
Purpose
From a firm-centric perspective, this study aims to elaborate on the types of servitisation strategies that can support a firm’s circular ambitions by asking: What is the role of servitisation in narrowing, slowing and/or closing resource loops? And, how are resources and capabilities arranged to provide such strategic circular service offerings?
Design/methodology/approach
Drawing on the experiences of an international manufacturing company from a dynamic capabilities perspective, the study offers an analytical framework that goes inside the firm’s operationalisation of its service offerings to support circularity in terms of the strategic decisions made. This framework is later used to frame the findings.
Findings
The study highlights the case-specific feedback loops and capabilities needed to support circular transitions. Various resource and innovation strategies for circularity are combined along customer interfaces and in partnership with upstream actors. Yet, open innovation strategies are conditioned by physical distance to provide circular services in remote areas.
Research limitations/implications
The main contributions are empirical, analytical, conceptual and practical. The servitisation framework for circularity connects prior servitisation-circularity research and provides an analytical tool for framing future studies. The study also expands the definition of open innovation in that closed innovations for circularity can be achieved through “open” information exchange in knowledge networks, as well as provides advice for similar large manufacturing companies.
Originality/value
This study focuses on the strategic choices made by industrial firms for circular service provision and emphasises the environmental benefits from such choices, in addition to the economic and customer benefits covered in extant servitisation research.
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John A. Fortunato and Allie Kosterich
As artificial intelligence (AI) continues to influence sports league and team operations, the brands providing these services are sponsoring sports properties to demonstrate and…
Abstract
Purpose
As artificial intelligence (AI) continues to influence sports league and team operations, the brands providing these services are sponsoring sports properties to demonstrate and communicate their performance capabilities. This article examines Amazon Web Services (AWS) sponsorship with the National Football League (NFL). This sponsorship features functional congruence, which is when a sponsor has a participatory role in performing services for the property.
Design/methodology/approach
The AWS sponsorship with the NFL is captured by examining specially created websites, in-game sponsored elements, and television commercials aired during the broadcast of NFL games. The AWS website focuses on the services profiled in this article.
Findings
AWS provides the NFL with performance-based (on-the-field) and business-based (off-the-field) services. Of particular note, AWS capabilities help the NFL create the game schedule and address the issue of player health and safety. Demonstrating functional congruence appears to be especially valuable in business-to-business marketing where purchase decisions are more focused on brand reliability. AWS television commercials feature the tagline, “if AWS can do this for the NFL, imagine what it can do for your business.”
Originality/value
With the role of AI in sports in its relative infancy, it is imperative to document what services AI brands are performing for a professional sports league. Examining AWS sponsorship with the NFL provides a timely, practical example of how an AI brand communicates and positions itself using sponsorship as a marketing strategy.
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Beini Liu, Zhenyan Li and Yaoyao Fu
Servitization of products is becoming increasingly prevalent among manufacturing enterprises. Existing research has primarily focused on exploring whether the direct impact of…
Abstract
Purpose
Servitization of products is becoming increasingly prevalent among manufacturing enterprises. Existing research has primarily focused on exploring whether the direct impact of servitization on manufacturer performance follows a linear or a curvilinear relationship. However, the understanding of the underlying mechanisms between servitization and manufacturer financial performance remains limited. This paper aims to examine the non-linear relationship between servitization and manufacturer performance as well as the mediating process and boundary condition associated with this relationship.
Design/methodology/approach
Drawing on resource-advantage theory, this paper proposes a theoretical model of the U-shaped relationship between servitization and the financial performance of equipment manufacturers. Panel data of 248 listed equipment manufacturers in China during the period of 2010–2020 are used to test each hypothesis through the ordinary least square method.
Findings
The empirical results indicate that servitization follows a U-shaped relationship with service business focus and the financial performance of equipment manufacturers. Service business focus mediates this U-shaped relationship between servitization and financial performance, and digital technology application moderates this relationship.
Originality/value
This paper pioneers the unraveling of the potential mechanism that can explain the curvilinear relationship between servitization of manufacturers and financial performance. This mechanism is the focus of the service business, which is theoretically delineated and empirically tested. Furthermore, digital technology application enables manufacturers to achieve service business focus more effectively in the process of servitization. Thus, this study addresses the call for research on digital servitization.
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Madalina Pana, Yang Cheng, Sami Farooq and Melanie E. Kreye
The purpose of the study is to determine the local antecedents of subsidiary participation in global services and, subsequently, the impact on local performance.
Abstract
Purpose
The purpose of the study is to determine the local antecedents of subsidiary participation in global services and, subsequently, the impact on local performance.
Design/methodology/approach
The study is based on a survey with the local subsidiaries of 14 manufacturers engaged in global services as part of their servitisation strategy.
Findings
Findings show support for considering the local ability for global services as an antecedent for local subsidiary participation in global services and the local service performance as an outcome. In addition, the results reject our hypotheses related to the specific roles of local opportunity and motivation for global services.
Originality/value
This study provides novel insights on the global service operations of manufacturers by highlighting the perspective of subsidiaries engaged in the local service delivery and development of global services. This perspective sets the conditions of the global-local collaboration in the context of global service strategy with local service delivery.
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Rajat Kumar Behera, Pradip Kumar Bala, Nripendra P. Rana and Zahir Irani
Co-creation of services (CCOS) is a collaborative strategy that emphasises customer involvement and their expertise to increase the value of the service experience. In the service…
Abstract
Purpose
Co-creation of services (CCOS) is a collaborative strategy that emphasises customer involvement and their expertise to increase the value of the service experience. In the service ecosystem, artificial intelligence (AI) plays a key role in value co-creation. Therefore, this study is undertaken to empirically uncover how AI can empower CCOS.
Design/methodology/approach
The source data were collected from 305 service provider respondents and quantitative methodology was applied for data analysis.
Findings
New service development augmented with AI provides tangible value to service providers while also providing intangible value to supportive customers. With AI, service providers adapt to new innovations and enrich additional information, which eventually outperforms human-created services.
Research limitations/implications
AI adoption for CCOS empowerment in service businesses brings “service-market fit”, which represents the significant benefits wherein customers contribute to creativity, intuition, and contextual awareness of services, and AI contributes to large-scale service-related analysis by handling volumes of data, service personalisation, and more time to focus on challenging problems of the market.
Originality/value
This study presents theoretical concepts on AI-empowered CCOS, AI technological innovativeness, customer participation in human-AI interaction, AI-powered customer expertise, and perceived benefits in CCOS, and subsequently discusses the CCOS empowerment framework. Then, it proposes a novel conceptual model based on the theoretical concepts and empirically measures and validates the intention to adopt AI for CCOS empowerment. Overall, the study contributes to novel insight on empowering service co-creation with AI.
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Nse Udohaya and Suzanne G.M. Fifield
This paper aims to evaluate the processes and strategies of Nigerian banks towards achieving financial inclusion and offer recommendations for policies that can lead to effective…
Abstract
Purpose
This paper aims to evaluate the processes and strategies of Nigerian banks towards achieving financial inclusion and offer recommendations for policies that can lead to effective and sustainable financial inclusion.
Design/methodology/approach
This paper conducts semi-structured interviews with senior executives of Nigerian banks to investigate their financial inclusion policies and practices.
Findings
This paper highlighted Nigerian banks’ views on dimensions that measure financial inclusion and found that they recognise that they play a pivotal role in providing access to formal financial services; however, their efforts to promote financial inclusion are provider-focused rather than customer-focused; they are keen to promote financial services usage; however, very little attention is paid to customer outcomes; financial inclusion is viewed as synonymous with access and innovations are not aiming for impact; and the sector is plagued with infrastructural challenges that breach service quality.
Originality/value
This paper reports on the practices of Nigerian banks towards financial inclusion and provides recommendations for rethinking sustainable financial inclusion. To date, this issue has not been investigated in the substantive literature. Nigeria is an ideal research site for examining financial inclusion. In recent years, the banking sector has made rapid strides in implementing policies to promote the adoption and usage of formal financial services. However, over half of the country’s adult population remains outside the formal financial system.
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This study explores how predictor variables (value congruence and customer–AI-assisted exchanges) lead tourism businesses to meet customer needs through contactless technology and…
Abstract
Purpose
This study explores how predictor variables (value congruence and customer–AI-assisted exchanges) lead tourism businesses to meet customer needs through contactless technology and enhance their willingness to pay more.
Design/methodology/approach
The research model was designed from the perspective of consumer-brand relationships and acceptance of AI device use. This study collected and analyzed 647 valid questionnaires using the structural equation modeling (SEM) approach.
Findings
The findings indicate that value congruence and customer-AI-assisted exchanges (CAIX) affect intimacy. Intimacy affects satisfaction and the willingness to pay more for contactless technological services. Moreover, brand trust and sensory brand experience play a role in moderating contactless technological services.
Originality/value
Effective interactions between customers and AI-assisted services significantly contribute to overall satisfaction. When AI systems can understand and respond appropriately to customer queries, needs, and preferences, they enhance customer experience and satisfaction levels, increasing overall customer satisfaction with AI services.
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