Service innovation in medical device manufacturers: does the digitalization matter?

Abstract

Purpose This study aims to validate a model of relationships between critical factors such as service strategy, culture-climate, leadership, customer involvement, technology strategy and service innovation (SI). Moreover, it investigates the impact of SI on a company’s performance and the moderating role of digitalization in the relationships between critical factors and SI. Design/methodology/approach Primary data were collected through a survey and partial least squares structural equation modeling was used to analyze the collected data and test the research hypotheses. Findings The results suggest positive associations of service strategy toward culture-climate, leadership, customer involvement and technology strategy in terms of significance and effect size. However, only two factors (e.g. customer involvement and technology strategy) positively influence SI, which affects financial and non-financial performance. Furthermore, digitalization does not strengthen the influence of four antecedents (i.e. culture-climate, leadership, customer involvement and technology strategy) in SI. Originality/value First, the study provides a comprehensive framework of SI critical factors and their impact on company performance. Second, it links servitization, SI and digitalization. Third, it tests the effects of digitalization.

Transparency in humanitarian logistics and supply chain: the moderating role of digitalisation

“…Digitalisation as a general domain is very well-explored in various disciplines from numerous perspectives. It has also been studied as a moderating variable in several studies across various disciplines (Djou et al, 2020;Lee et al, 2019;Smania et al, 2021). Though from a slightly different perspective, the role of digitalisation as a moderator in supply chain management was examined in the recent literature (Braganza et al, 2021;Eslami et al, 2021;Ju et al, 2020).…”

“…This study, however, examined it from a holistic perspective. In addition, this study examines its role as a moderator in humanitarian logistics and supply chain literature for the first time, while it has been extensively examined as a moderator in other disciplines (Djou et al, 2020;Lee et al, 2019;Smania et al, 2021).…”

The digitalization decision

“…The work of Smania et al (2021) has identified that SI has the ability to boost performance of both financial and non-financial elements in a company. This is due, in part, to the effect innovation has on company culture, and therefore the spread effect into mindset and drive of employees.…”

“…A priority of medical manufacturing companies should therefore be to invest heavily in service strategy, customer involvement, and technology strategy, as antecedents to SI. Whilst the work of Smania et al (2021) hasn’t found a strong link between digital technologies and improved performance in medical manufacturing, it is likely that there are significant areas of growth that are yet to be fully understood. Oversight of processes, and slick service offerings require digital technologies.…”

“…Servitization has the potential to create significant financial and marketing opportunities for a manufacturer, but it comes with challenges. The work of Smania et al (2021) has identified service innovation (SI) as one of these challenges. SI is considered a key element for consideration by manufacturing companies due to the push towards servitization and the parallel influence of digitalization.…”