Interplay between servitization and platforms: a longitudinal case study

Abstract

PurposeThis paper aims to empirically explore the evolution of servitization and how platforms affect the transition between the stages of servitization.Design/methodology/approachThe authors conducted an in-depth case study of a Chinese manufacturer (i.e. Haier) using a longitudinal design. Three rounds of data collection were conducted between 2014 and 2020. The authors carried out 50 semi-structured interviews and 11 workshops to collect data from senior and middle managers of Haier and its business partners.FindingsThe authors found that Haier’s servitization journey includes three stages (i.e. product-oriented solution, integrated solution and smart connected solutions) that evolve in the target of the services and the digital components of the solutions. Haier has also developed three types of platforms (i.e. service platform, supply chain platform and platform ecosystem) to support the implementation of servitization. The empirical evidence reveals that platforms can address the complexities that emerged when Haier implements the different stages of servitization as well as enable Haier to transition from one stage of servitization to the next.Originality/valueThis study enhances the current understanding of the evolution of servitization and the roles of digital technologies in the transition between the stages of servitization. It also provides empirical evidence regarding how the platform approach enables the development of servitization. By clarifying the interplay between servitization and platforms, this study provides guidelines for managers on how to develop platforms to both advance and benefit from servitization.

Digital Adaptive Governance, Digital Transformation, and Service Quality in Logistics Enterprises

“…For RQ2, our research confirms that there is a linear relationship and significant interaction effect between digitalization and servitization in logistics enterprises. Due to the differentiation of research perspectives between digitalization and servitization, our research has contributed to the exploration of the interaction between digitization and servitization for further, which expands the previous research conclusion that digitization has a driving effect on servitization and has an impact on firm financial performance (Abou-Foul, Ruiz-Alba & Soares, 2021;Fu et al, 2022). To achieve the expected goals of digitalization and servitization, a deep understanding and full realization of the synergy between the interaction effects of the two and continuous valuable investment are required.…”

“…So far, little research on servitization has been associated with digitalization. Although some studies have confirmed the role of software in servitization (Coreynen, Matthyssens & Van Bockhaven, 2017), and have begun to emphasize the correlation between digitalization and servitization (Abou-Foul, Ruiz-Alba & Soares, 2021; Fu et al, 2022;Kohtamäki et al,2019), these studies lack the necessary emphasis on the interaction effect between digitalization and servitization. In fact, digitalization and servitization are built on infrastructure and implemented through technology (Fürstenau, Baiyere & Kliewer, 2019;Svahn, Mathiassen & Lindgren, 2017), both servitization and digitalization of enterprises require huge investment based on infrastructure (purchase, transformation and construction), however, such investment is not always successful.…”

Environmental performance of servitized manufacturing firms: the (mis)alignment between servitization strategies and inter-organizational information technology capabilities

“…Recently, emerging scholarship has recognized servitization as an environmentally friendly business strategy that improves environmental performance (Agrawal and Bellos, 2017). Servitization increases manufacturers' opportunities for direct customer interactions and enables the acquisition of customers' operational experiences as well as their feedback concerning product use (Fu et al. , 2022).…”

The impact of servitization on trade credit in manufacturing firms: a signaling theory perspective

“…For example, Haier established a famous service-ecosystem platform (i.e. COSMOPlat), which connects its potential supply chain partners and thus provides emerging supply chain financing opportunities for the participants to resolve financing difficulties (Fu et al. , 2022).…”

“…For example, Haier established a famous service-ecosystem platform (i.e. COSMOPlat), which connects its potential supply chain partners and thus provides emerging supply chain financing opportunities for the participants to resolve financing difficulties (Fu et al, 2022). This suggests that it is crucial to explore the importance of servitization in supply chain finance, which can also effectively narrow the gap of the servitization-firm performance link.…”