Service manoeuvres to overcome challenges of servitisation in a value network

Löfberg, Nina; Witell, Lars; Gustafsson, Anders

doi:10.1080/09537287.2015.1033491

Cited by 20 publications

(21 citation statements)

References 35 publications

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“…Finally, this paper adds to the knowledge on hybrid offerings outside large manufacturing firms (e.g., Gebauer et al, 2010;Baines et al, 2016). As recent research suggests (Löfberg et al, 2015), servitization affects entire supply chains, including SME suppliers, indicating the need to understand the implications of servitization for these firms.…”

Section: Implications For Researchmentioning

confidence: 87%

Service capabilities and servitized SME performance: contingency on firm age

Valtakoski

Witell

2018

IJOPM

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Purpose The purpose of this paper is to study the impact of back-office (BO) service capability and front-office (FO) service capability, and how firm age influences the impact of these service capabilities on small and medium size enterprise (SME) performance. Design/methodology/approach Based on the prior literature on servitization and firm operational capabilities, hypotheses were developed on the impact of service capabilities on firm performance. These hypotheses were tested using a survey and externally sourced financial data on 224 SMEs in the software industry. Findings FO service capability has a positive impact on firm performance of SMEs. The effect of BO service capability was weaker and partly contrary to expectations, showing a negative effect on firm performance for young SMEs. As hypothesized, the impact of both BO and FO service capability is moderated by firm age. Young SMEs benefit more from FO service capability. For older SMEs, BO service capability becomes increasingly more important. Practical implications As different capabilities lead to different outcomes, SMEs need to carefully consider which service capabilities to invest in. As the relative importance of capabilities changes over time, SMEs need to be ready to change their strategic focus over time toward BO capabilities to attain optimal outcomes. Originality/value The findings suggest that factors such as industry, firm size, and firm age affect the optimal servitization path, and that current understanding of servitization does not necessarily apply to all servitized firms. The study also provides further evidence of the impact of service capabilities on firm performance.

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Section: Implications For Researchmentioning

confidence: 87%

Service capabilities and servitized SME performance: contingency on firm age

Valtakoski

Witell

2018

IJOPM

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“…Due to the integrated nature of PSS offerings, servitised manufacturers face specific issues (Löfberg et al 2015). Many PSS providers have a manufacturing and thus production-focused background (Vandermerwe and Rada 1988, Kreye et al 2013, Peillon et al 2015.…”

Section: Pss Provisionmentioning

confidence: 99%

Employee motivation in product-service system providers

Kreye

2016

Production Planning & Control

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This research investigates how intrinsic and extrinsic motivation factors contribute to employee motivation in providers of Product-Service Systems (PSS). Employee motivation determines the quality of the delivered service and is thus an area of great importance for PSS providers. We present rich case-based data collected through semi-structured interviews, a survey and secondary sources. The analysis showed the particularly high importance of intrinsic and individual motivation factors such as the fulfilling nature of the work and skill development showing the ownership and pride service employees took in their work. Further, the organisation needs to set the context of high employee motivation by enabling flexibility and performance feedback. Our research contributes to the literature by providing a first empirical study of employee motivation in PSS providers and thus providing important insights on the implementation of a servitisation strategy.

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“…This BM innovation can be radical or incremental [7], and both may bring important challenges derived from the changes caused in the elements of the traditional BM to become a new Servitized BM [8,9,10]. According to Dahmani et al [11], the decision-making process during servitization passes through three macro processes: (i) design of a product-service solution, (ii) transformation of a traditional BM to servitized BM and, (iii) organizational change needed to support the new BM.…”

Section: Introductionmentioning

confidence: 99%

An Analysis of Buyer-supplier Integration for Servitization Strategies

et al. 2016

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The Business Model (BM) transformation process, changing from a traditional manufacturing BM to BM focused on servitization (servitized BM), may increase the management complexity, which is also reflected in a need of superior levels of organizational knowledge. Therefore, one alternative to deal with this challenge is by acquiring knowledge from suppliers. However, there is still a lack of studies analyzing the collaboration intensity and knowledge transfer with suppliers to be successful in the BM transformation for servitization. Thus, this paper aims to understand how companies deal with suppliers' knowledge integration aiming for servitization and to understand the knowledge transfer dynamics in this integration. Aiming this, we adapted to the context of servitized solutions development, the framework proposed by Le Dain and Merminod (2014) for supplier integration in collaborative new product development (NPD), which combines three typical supplier involvement configurations (black, grey and white box integration) with the three knowledge sharing levels proposed by Carlile (2004) (transfer, translation and transformation). By means of a multiple-case study analysis of seven multinational companies, we first reinterpreted the three classical supplier integration configuration, showing how they can happen in servitization; then, we analyzed the levels of knowledge sharing that are present in each one of the three suppliers' involvement configurations. Our results show differences of the framework when compared to the original one for supplier involvement. We also discuss causes of such a difference between purely product development and servitized product development.

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Service manoeuvres to overcome challenges of servitisation in a value network

Cited by 20 publications

References 35 publications

Service capabilities and servitized SME performance: contingency on firm age

Service capabilities and servitized SME performance: contingency on firm age

Employee motivation in product-service system providers

An Analysis of Buyer-supplier Integration for Servitization Strategies

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