Service implementation in manufacturing: An organisational transformation perspective

Bustinza, Óscar F.; Vendrell‐Herrero, Ferran; Baines, Tim

doi:10.1016/j.ijpe.2017.08.017

Cited by 86 publications

(81 citation statements)

References 44 publications

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“…We document the power of work relationships between suppliers and business customers, as embodied in the connections of key figures in these organisations, in influencing the capacity of a particular party in the relationships to cope and adapt when it is experiencing decline. We also offer specific insight on the interplay between product and service offerings (Bustinza, Vendrell‐Herrero, & Baines, ; Cusumano, Kahl, & Suarez, ; Fang, Palmatier, & Steenkamp, ) by showing how the underlying organisation's relative relational strengths helped it to overcome setbacks caused by its disadvantaged position vis‐à‐vis competitors on the product front.…”

Section: Discussionmentioning

confidence: 99%

Interorganisational Relationships in Times of Decline: Implications for Organisational Resilience

Brueller

et al. 2019

Applied Psychology

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We seek to delineate the processes by which work relationships between employees from buyer and supplier organisations can enhance the supplier's resilience. A micro-foundations perspective is taken to study the effect of individual-level relationships on these higher-level processes in the context of a declining organisation-a supplier that has been experiencing a period of size decline, following the transition of some of its stronger competitors to a more advanced generation of products. The findings of a qualitative study indicate that the work relationships built between employees from the supplier and the customers around current product and services offerings can help a declining organisation to cope with setbacks and difficulties. Expanding on the three C's of hardiness (challenge, control, and commitment), we discuss the implications of our research for the study of resilience through the lens of interorganisational work relationships and highlight the different pathways that build these coping and adaptation qualities for the organisation. Specifically, the challenge of transitioning to new products can negatively influence these work relationships unless the supplier organisation provides supportive context by allowing employees to retain the necessary control over what it takes to serve their customers. Furthermore, the supplier should display strong commitment to integrate the new offerings while customers need to mirror this commitment byWe wish to thank the participants of this research project for their willingness to engage and share with us their experiences. We also thank the guest editors and two anonymous reviewers for their constructive feedback on earlier drafts of this paper, and Gerda Kessler for her editorial comments.

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Section: Discussionmentioning

confidence: 99%

Interorganisational Relationships in Times of Decline: Implications for Organisational Resilience

Brueller

et al. 2019

Applied Psychology

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“…An important finding of this study is the relevance of digital servitization for firm productivity, confirming Hypothesis 1. This result can be ascribed mainly to the technological attributes of digital services, which enable better coordination of operations [14,16,17], driving firm performance and competitiveness [23][24][25][26][27]; and to the nature of the automotive industry, which is characterized by high investment in R&D and high technological sophistication [8,67,78].…”

Section: Discussionmentioning

confidence: 99%

“…Through such complementarity, both service concepts aim to optimize (efficiently and sustainably) the total pool of resources through the support of ICT capabilities. Such synergies not only enable multiple operational benefits (described above) [14,16,17,64,65] but also provide the necessary means to meet environmental regulatory requirements [42,74]. Arguing a positive mutually reinforcing effect between digital and green servitization in operations performance, we therefore hypothesize the following:…”

Section: Developing Testable Hypothesesmentioning

confidence: 97%

“…Such benefits are directly associated with the technological attributes of digitalization [15,18,65,69,71], which enable companies to identify and virtualize assets, facilitating allocation of resources [73], reducing development costs [72], decreasing planning times [13,65] and shortening time to market [14]. All of the above result in higher operating margins [23][24][25], while implementation of digital servitization gives companies sophisticated mechanisms to exploit value from data [62,63,69,71], facilitating and streamlining decision-making processes to respond to internal and external contingencies in a timely and effective manner [15,17]. Thus, digital servitization enables faster response to customer demands [14,18,65,67] and improves the quality of service provision [16,69], increasing the firm's performance and competitiveness [26,27].…”

Section: Developing Testable Hypothesesmentioning

confidence: 99%

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Uncovering Productivity Gains of Digital and Green Servitization: Implications from the Automotive Industry

2018

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Abstract:The growing industrial concern about sustainability challenges has driven vehicle and auto parts manufacturers to adopt service capabilities as a way to maintain competitiveness in compliance with environmental regulations. As a result, automakers have progressively integrated digital and green service initiatives to support operations and address environmental issues effectively. The present study examined the effect of digital and green servitization on the firm's productivity. To test their effect quantitatively, this study used the ORBIS database to construct a multi-country sample containing 228 companies in the automotive industry. Our findings indicate that implementation of digital and green servitization is positively associated with higher productivity outcomes once the two forms of servitization coexist and operate jointly. Moreover, the results of the study underscore the importance of establishing a successional pathway of implementation priorities. Our evidence suggests that firms willing to offer green services should consider offering digital services first, as this is the only way to obtain productivity gains from green servitization.

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“…An increasing number of manufacturers have realized that competitive advantage may be gained from servitization (Bustinza et al, 2017), which is the innovation of a manufacturer's capabilities and processes to move from selling products to selling integrated product-service offerings that deliver value in use (Baines et al, 2011). Since this strategy has been proven to bring benefits to manufacturing firms, they are increasingly attempting to create greater value and competitive advantage through services rather than physical products (Settanni et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

Strategic orientation of servitization in manufacturing firms and its impacts on firm performance

Lin

Luo

Ieromonachou

et al. 2019

IMDS

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Purpose -The purpose of this study is to provide implementation insights and implications regarding the strategic orientations of servitization by testing its impacts on firm performance, including financial performance and customer service performance.Design/methodology/approach -Empirical research is conducted using an online survey disseminated to manufacturing firms in southeast China. This research develops and verifies a strategic fit framework to understand the relationship between the strategic orientation of servitization and service innovation, and its resulting impacts on firm performance.Findings -The results show that service orientation has direct positive impacts on firm performance in the manufacturing sector. Customer orientation and learning orientation have no direct impact on firm performance, although they have indirect impacts on it via the mediating role of service innovation capability. Moreover, service orientation has a similar indirect impact on firm performance via service innovation capability.Research limitation/implications -The survey focuses only on China; future studies should verify whether different cultural backgrounds impact the research results.Practical implications -The results suggest that firms should build up three strategic orientations (service orientation, customer orientation, and learning orientation) for implementing servitization to facilitate service innovation capability and thus to improve firm performance.2 Originality/value -This research contributes to enhancing the theory of servitization by developing a strategic fit model of servitization and revealing the impact mechanism of servitization in the manufacturing sector.

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Service implementation in manufacturing: An organisational transformation perspective

Cited by 86 publications

References 44 publications

Interorganisational Relationships in Times of Decline: Implications for Organisational Resilience

Interorganisational Relationships in Times of Decline: Implications for Organisational Resilience

Uncovering Productivity Gains of Digital and Green Servitization: Implications from the Automotive Industry

Strategic orientation of servitization in manufacturing firms and its impacts on firm performance

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