Managing servitization in product companies: the moderating role of service suppliers

Abstract

Purpose-The purpose of this paper is to study service innovation in product companies (servitization) by considering the relationship (moderation) between product companies and service suppliers. Methodology-Using a relational view of the firm, we propose that there are three main business dimensions that product companies have to manage in servitization and that the support of service suppliers can moderate the effects of these dimensions on the benefits obtained from the Product-Service System (PSS) delivered. To test these hypotheses, we perform a cross-sectional quantitative survey in 104 Brazilian and Italian product companies. Findings-Our findings show that the three business dimensions are important for servitization while there is a trade-off decision regarding service suppliers' involvement since suppliers act differently depending on the PSS orientation (product or service-oriented). Research limitations/implications-Our work is limited to the analysis of what should change in a company during servitization and the impact of supplier's support. Further research is needed to complement this study by analyzing the process and context of the organizational change. Originality/value-This is one of the first quantitative studies to provide evidence of how service supplier' support affects different servitization business dimensions and the obtained benefits for both product and service-oriented outputs. Practical implications-Our research contributes an understanding about how the benefits practitioners can obtain from servitization are strongly influenced by the involvement of service suppliers and how this influence depends on the PSS orientation of the product company.

Explaining the servitization paradox: a configurational theory and a performance measurement framework

“…High levels of MSO are also required for the impact of servitization on a number of other financial and nonfinancial performance constructs and indicators to be positive. These are customer satisfaction and loyalty, return on investment, return on assets and sales growth (Zhao et al, 2017;Li et al, 2018;Ayala et al, 2019;Frank et al, 2019;Yan et al, 2019). Furthermore, when organizations have a dedicated service executive (OS) or outsource the service provision to specialized providers, performance improves in terms of differentiation and customer satisfaction (Bustinza et al, 2015).…”

A relationship model for factors influencing knowledge transfer between NPD teams

“…We found that two main pillars support such product strategy, from one hand technical skills of the team and from the other the willingness to establish a good strategy to develop platforms that allow obtaining advantage from the existing knowledge in NPD teams (Figure 3A). The model also shows that these both dimensions are stronger when there is an effective interaction with external suppliers, bringing fresh knowledge from an external source (Ayala et al, 2017(Ayala et al, , 2018.…”

“…In order to take advantage from the knowledge generated during NPD, several scholars have studied the contribution of knowledge management strategies (e.g. Yam & Chan, 2015;Akroush & Awwad, 2018;Ayala et al, 2017Ayala et al, , 2018. When referring to NPD, one of the focus of knowledge management studies is the use of the generated knowledge to improve future or other concurrent projects.…”

Resource integration optimization of convenience service platforms adopting dynamic service modes in new retail

“…Lamba and Singh (2019) propose a dynamic supplier selection model considering the carbon emissions in a big data environment. Ayala et al (2019) study the moderating role of service suppliers in product companies (servitization). With regard to the integration of service products, some scholars explored the resource selection and integration in third-party logistics service.…”