Paradoxes in servitization: A processual perspective

Dmitrijeva, Jekaterina; Schröeder, Andreas; Bigdeli, Ali Ziaee; Baines, Tim

doi:10.1016/j.indmarman.2021.12.007

Cited by 42 publications

(48 citation statements)

References 97 publications

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“…The extent of environmental uncertainty affects the digital technology adoption and the dynamic capabilities development within a firm, thus influencing the firm's strategy and process of servitization. That is, firms need to smartly calculate the cost and benefit of the servitization deployment against the environmental uncertainty they face, and they may be reluctant to capitalize on such transformation unless the premium is attractive enough (Coreynen et al, 2020;Dmitrijeva et al, 2022). Moreover, previous research emphasized that environmental uncertainty and firm ownership have potentially significant impacts on the servitization process of manufacturers Turunen and Finne, 2014;Rondi et al, 2021).…”

Section: Contingency Factors For Servitizationmentioning

confidence: 99%

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Manufacturing servitization in the digital economy: a configurational analysis from dynamic capabilities and lifecycle perspective

Zhan

Zhang

et al. 2022

IMDS

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PurposeDespite servitization being widely regarded as an essential catalyst to improve manufacturing firms' survival and competitiveness, how to attain servitization remains debatable. The primary objective of this research is to explore whether or not, how, and when the dynamic capabilities affect servitization in the digital economy background. This research investigates the relationships between servitization and dynamic capabilities by incorporating firm ownership, firm lifecycle stage, digital economy level and environmental uncertainty as contingency factors in the research framework.Design/methodology/approachThis research develops and verifies a conceptual framework for manufacturing servitization by employing the fuzzy-set qualitative comparative analysis (fsQCA) in analyzing the secondary longitudinal data from 148 China-listed manufacturing firms involved in servitization from 2015 to 2020.FindingsThe analytical results of fsQCA identify several configurational solutions for the success of manufacturing servitization. Each factor can be an enabler for servitization success despite none of the factors discovered as an absolute condition. Manufacturing servitization success within the digital economy depends on the interactions between dynamic capabilities and contingency factors such as digital economy level, environmental uncertainty, firm ownership, and lifecycle stage.Research limitations/implicationsAll of the construct's measurements in this research adopt secondary data, and further investigation calls for primary data (e.g. survey) for higher validity.Originality/valueThis research extends the current view of servitization by proposing an integrative conceptual framework, allowing manufacturing servitization to be examined more pertinently and comprehensively. Second, the research is an initial attempt that adopts fsQCA in servitization studies. The study sheds light on the mechanisms of attaining servitization by revealing the importance of dynamic capabilities and their interactions with the contingency factors. Third, the research extends the application scopes of dynamic capability theory, firm lifecycle theory, contingency theory, and institutional theory. Fourth, the research findings enrich the understanding of servitization in the digital economy and give business practitioners insights on leveraging dynamic capabilities in different conditions to attain successful servitization under the current circumstances.

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Section: Contingency Factors For Servitizationmentioning

confidence: 99%

“…That is, firms need to smartly calculate the cost and benefit of the servitization deployment against the environmental uncertainty they face, and they may be reluctant to capitalize on such transformation unless the premium is attractive enough (Coreynen et al. , 2020; Dmitrijeva et al. , 2022).…”

Section: Theoretical Background and Research Frameworkmentioning

confidence: 99%

Manufacturing servitization in the digital economy: a configurational analysis from dynamic capabilities and lifecycle perspective

Zhan

Zhang

et al. 2022

IMDS

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“…Especially in servitization-related business model changes and in complex, advanced product-service systems (Story, Raddats, Burton, Zolkiewski & Baines, 2017) fueled by the rising inclusion of digitization in companies' servitization efforts (Gebauer et al, 2020b), B2B managers might be caught in a web of paradoxical tensions. As a result, we see a notable rise in paradox-inservitization research in recent years with contributions such as Tóth et al, 2022;Dmitrijeva, Schroeder, Bigdeli & Baines, 2022, Galvani & Bocconcelli, 2022. Several authors called for strengthening the paradox theory lens in the field of (digital) servitization (Tóth et al, 2022;Kohtamäki et al, 2020a;Tronvoll, Sklyar, Sörhammar & Köwalkowski, 2020;Gölgeci, Karakas & Tatoglu, 2019).…”

Section: Use Of Simple Heuristics To Manage Digital Servitizationmentioning

confidence: 99%

“…(3) a degree of conceptual imprecision and the conception of paradox as problem. For instance, Dmitrijeva et al (2022), Tóth et al (2022) and Galvani & Bocconcelli (2022) seemingly use the term paradoxical tensions also for contradictions, ambiguities, and similar problems. The equilibrium model (Fairhurst & Putnam, 2019) is clearly apparent in most paradox-as-servitization research contributions leading to a 'problem solving' rather than a more dynamic paradox 'taming' or 'coping' perspective.…”

Section: Use Of Simple Heuristics To Manage Digital Servitizationmentioning

confidence: 99%

9th International Conference on Business Servitization

Vendrell‐Herrero¹,

Bustinza²,

Opazo‐Basáez³

2022

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“…In particular, in the context of servitisation, a shift from the existing knowledge domain related to products to the knowledge domain related to services is required, which creates new learning needs compared to other transformations (such as restructuring and mergers) [11]. This relates to the competing demands of exploiting established knowledge and searching for and constructing new groundbreaking knowledge [12], with additional conflicts such as the development of the core product business and the new sophistication of the service business [13]. Such conflicts are superficially portrayed as conflicts between product and service businesses, but products and services are interdependent, and manufacturing firms must constantly source, combine, manage and coordinate new knowledge from both parts of the business [14,15].…”

Section: Introductionmentioning

confidence: 99%

A Strategic Double-Loop Learning Method for Organisational Decision-Making toward Servitisation

et al. 2022

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In recent years, manufacturing industries have been expected to achieve servitisation—namely, a shift from product sales to product-service systems—in order to achieve sustainable production and consumption patterns. In order to achieve servitisation, manufacturing firms should grasp the business environment and encourage organisational learning to develop the knowledge for servitisation in their environment. The existing knowledge management studies enable the empirical acquisition and reuse of knowledge from past case studies and make efforts to support organisational learning. However, they do not cover the guiding of firms engaged in servitisation to learn appropriately for their business environment. The learning required for manufacturing firms engaged in servitisation is learning that focuses on questioning and modifying existing product-oriented premises—double-loop learning. This paper proposes a method to support strategic double-loop learning within manufacturing companies engaged in servitisation. This method evaluates the compatibility between the implicit premises that manufacturers refer to as the rationale for their decision toward servitisation and the external environment and enables to formulate a practical strategy for double-loop learning. The proposed method was applied to the case of a cassette tape music player to demonstrate its usefulness. This study suggests theoretical foundations for future research into knowledge management for traditional manufacturing companies’ decisions concerning servitisation, and suggests that these should be carried out dynamically according to the business environment.

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Paradoxes in servitization: A processual perspective

Cited by 42 publications

References 97 publications

Manufacturing servitization in the digital economy: a configurational analysis from dynamic capabilities and lifecycle perspective

Manufacturing servitization in the digital economy: a configurational analysis from dynamic capabilities and lifecycle perspective

9th International Conference on Business Servitization

A Strategic Double-Loop Learning Method for Organisational Decision-Making toward Servitisation

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