Paradoxes and coping mechanisms in the servitisation journey

Chaudhary, Sanjay; Dhir, Amandeep; Gligor, David; Khan, Sher Jahan; Ferraris, Alberto

doi:10.1016/j.indmarman.2022.09.005

Cited by 20 publications

(49 citation statements)

References 92 publications

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“…This was previously said by Radu-Lefebvre and Randerson (2020), who advocated maintaining a fine balance between the two. Chaudhary et al (2022) further state that conflicting interests in performance in terms of long-term and short-term goals are another problem in servitization. The confusion in learning chips in when existing knowledge is not good enough and new knowledge is necessary to take things forward, but the old knowledge becomes an impediment and mental block to learn new things (Paiola et al, 2021).…”

Section: Willingness To Pay For Industrial Servicesmentioning

confidence: 99%

Attribute-based choice model and willingness to pay for industrial services

Rakesh

Menon

Raman

2023

BIJ

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PurposePricing is widely acknowledged as a market entry challenge for servitising companies. The purpose of this research is to ascertain the attributes that contribute to willingness to pay (WTP) for industrial services and suggest incorporating those attributes to a pricing model.Design/methodology/approachThree attributes (Quality of Service, Nearness of Service Provider and Brand Equity of Service Provider) were analyzed at three respective levels to ascertain their importance on WTP. Conventional conjoint analysis (CCA), using an orthogonal design, was the method used. The 346 respondents were decision-makers and top management professionals from various industries.FindingsBrand Equity emerged as the most significant attribute contributing to WTP, having more than 45% importance – followed by the Quality and Nearness.Research limitations/implicationsThe scope of the study is limited to the industries and its Allies. However, the relative importance of the attributes may vary depending on the type of service.Practical implicationsThe importance of attributes and their WTP preference helps future researchers create a pricing model involving these attributes. This helps service providers price their services rationally, thus succeeding in servitization.Social implicationsProduct life is extended because the manufacturers themselves are servicing it and also help recycle the product with their expertise. Servitization is also helpful for the Indian economy, as it is turning into a manufacturing economy.Originality/valueThis research investigates three attributes that contribute to WTP, in accordance with their level of contribution. It also provides a direction to establish an adequate pricing model for industrial services.

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Section: Willingness To Pay For Industrial Servicesmentioning

confidence: 99%

Attribute-based choice model and willingness to pay for industrial services

Rakesh

Menon

Raman

2023

BIJ

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“…As a result, individual employees and coalitions thereof (e.g., operations, R&D, and sales) may feel that their established expertise, power, and competences are under threat (Josephson et al, 2016) and become reluctant to leave their comfort zones, accept process changes, engage in service activities, and learn new skills (e.g., Burton et al, 2016). These employees need to learn to navigate and cope with the paradoxical tensions experienced in their roles during service transition (Kohtamäki et al, 2020;Chaudhary et al, 2022).…”

Section: Organizational Role Theory and Role Stress During Service Tr...mentioning

confidence: 99%

“…Burton et al, 2016). These employees need to learn to navigate and cope with the paradoxical tensions experienced in their roles during service transition (Kohtam€ aki et al, 2020;Chaudhary et al, 2022).…”

Section: Organizational Role Theory and Role Stress During Service Tr...mentioning

confidence: 99%

“…Attempts to integrate product-centered and service-centered customer orientations can compromise sales targets and service objectives, resulting in internal tension, confusion and even leading to organizational conflict (Gabler et al, 2017;Kohtam€ aki et al, 2020). This makes it necessary for organizations to learn to reconcile and cope with the paradoxical tensions they encounter (Chaudhary et al, 2022;Kohtam€ aki et al, 2020;Visnjic et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

“…, 2020). This makes it necessary for organizations to learn to reconcile and cope with the paradoxical tensions they encounter (Chaudhary et al ., 2022; Kohtamäki et al. , 2020; Visnjic et al.…”

Section: Introductionmentioning

confidence: 99%

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Front- and back-end employee satisfaction during service transition

Karatzas

Papadopoulos

Stamolampros

et al. 2023

IJOPM

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PurposeScholars studying servitization argue that manufacturers moving into services need to develop new job roles or modify existing ones, which must be enacted by employees with the right mentality, skill sets, attitudes and capabilities. However, there is a paucity of empirical research on how such changes affect employee-level outcomes.Design/methodology/approachThe authors theorize that job enrichment and role stress act as countervailing forces during the manufacturer's service transition, with implications for employee satisfaction. The authors test the hypotheses using a sample of 21,869 employees from 201 American manufacturers that declared revenues from services over a 10-year period.FindingsThe authors find an inverted U-shaped relationship between the firm's level of service infusion and individual employee satisfaction, which is flatter for front-end staff. This relationship differs in shape and/or magnitude between firms, highlighting the role of unobserved firm-level idiosyncratic factors.Practical implicationsServitized manufacturers, especially those in the later stage of their transition (i.e. when services start to account for more than 50% of annual revenues), should try to ameliorate their employees' role-induced stress to counter a drop in satisfaction.Originality/valueThis is one of the first studies to examine systematically the relationship between servitization and individual employee satisfaction. It shows that back-end employees in manufacturing firms are considerably affected by an increasing emphasis on services, while past literature has almost exclusively been concerned with front-end staff.

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