Commodity Marketing: An Introduction into Key Concepts and Processes

Enke, Margit; Geigenmüller, Anja; Leischnig, Alexander

doi:10.1007/978-3-030-90657-3_1

Cited by 3 publications

(2 citation statements)

References 78 publications

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“…Servitization is considered a strategic option for manufacturers to differentiate products from competing offerings and escape the product commoditization trap (Laure et al 2018;Eggert et al 2014;Enke et al 2022). Over the last two decades, scholars have used different conceptualizations and classifications to describe manufacturers' servitized offerings (e.g., Rabetino et al 2018Rabetino et al , 2021Wang et al 2018).…”

Section: Perspectives On Servitizationmentioning

confidence: 99%

Organization Architecture Configurations for Successful Servitization

Heirati

Leischnig

Henneberg

2023

Journal of Service Research

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Despite the growing importance of servitization as a source of competitiveness for manufacturers, limited knowledge exists about organizational issues of servitization. Drawing on transaction cost economics theory and a configuration theoretical perspective, our study illuminates different organization architectures for servitization and how firms align such architectures with servitization approaches to achieve high financial performance. We analyze qualitative data based on interviews with 22 managers and quantitative data from a survey of 161 equipment manufacturers. The results indicate that manufacturers mostly opt for one of three organization architectures for servitization: internal product business unit, internal specialized service business unit, or external service provider. In addition, they reveal equifinal configurations of servitization characteristics to achieve high financial performance for each organization architecture. The internal specialized service business unit turns out as a flexible organization architecture to successfully provide smoothing, adapting, and substituting services. The use of an external service provider is less suited for the provision of adapting and substituting services, which require more knowledge specialization and coordination. All three organization architectures can be used to provide smoothing services. In summary, the results may serve as decision-making templates for aligning organization architecture, offering characteristics, and service provider integration to pursue servitization successfully.

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Section: Perspectives On Servitizationmentioning

confidence: 99%

Organization Architecture Configurations for Successful Servitization

Heirati

Leischnig

Henneberg

2023

Journal of Service Research

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“…Servitization has become an important element of manufacturers' innovation strategy to escape product commoditization traps and (re-)establish a competitive edge (Enke et al, 2022;Struyf et al, 2021;Wang et al, 2018). It represents a transformation process in which manufacturing firms shift their business model from a purely product-centric to a more service-centric one (Baines et al, 2020;Kowalkowski et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

Capability configurations for successful advanced servitization

Heirati,

Thornton,

Leischnig

et al. 2024

IJOPM

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PurposeAdvanced servitization is the process that involves the combination of different services that facilitate both the use of a product and customer operations. Although servitization has emerged as a frequent strategy for manufacturers to differentiate themselves from the competition, its implementation can pose major challenges and may not always result in superior firm performance. Consequently, successful advanced servitization may require specific organizational capabilities to unleash performance-enhancing effects. To date, little is known about how to effectively configure advanced servitization to achieve such performance gains.Design/methodology/approachAdopting a fit theory perspective and using a configurational approach, we examine the interplay between servitization, organizational capabilities, contextual factors and financial performance. Specifically, we focus on advanced servitization and assess its necessity and sufficiency for achieving high financial performance. In addition, we study how the alignment of servitization approaches with organizational capabilities and contextual factors affects financial performance. We analyze data from 151 manufacturers in an emerging economy using fuzzy-set Qualitative Comparative Analysis (fsQCA).FindingsOur findings indicate that advanced servitization is sufficient, but not necessary for high financial performance. In addition, the findings indicate that the alignment of servitization approaches with specific service-related capabilities unfolds complementarity effects that contribute to achieving high financial performance for manufacturers with different firm size and competitive intensity. The findings indicate three configurations that may serve as templates for managers to orchestrate resource allocation and successfully deploy advanced servitization.Originality/valueOur study advances the servitization literature by further illuminating advanced servitization as a more complex servitization process. We show how high-performing manufacturers align servitization and organizational capabilities across different contexts, and thus provide design choices for managers in configuring servitization.

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An International Perspective on Commodity Marketing

Czinkota

Enke

2022

Commodity Marketing

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Commodity Marketing: An Introduction into Key Concepts and Processes

Cited by 3 publications

References 78 publications

Organization Architecture Configurations for Successful Servitization

Organization Architecture Configurations for Successful Servitization

Capability configurations for successful advanced servitization

An International Perspective on Commodity Marketing

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