Servitization and deservitization: Overview, concepts, and definitions

Kowalkowski, Christian; Gebauer, Heiko; Kamp, Bart; Parry, Glenn

doi:10.1016/j.indmarman.2016.12.007

Cited by 433 publications

(370 citation statements)

References 45 publications

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“…This can help to explain the service paradox that is the failure of service strategies in product‐oriented firms despite their benefits (e.g., Gebauer et al, ). Despite extensive servitization research, the understanding of the service paradox, its underlying barriers, and the capabilities that are required to overcome servitization failure, remains limited (Kowalkowski et al, ; Story, Raddats, Burton, Zolkiewski, and Baines, ). In line with this service paradox the results show that there is no overall difference—in terms of innovation program performance—between companies with a high degree of servitization and companies with a lower degree of servitization (.02 total effect of degree of servitization on innovation program performance).…”

Section: Discussionmentioning

confidence: 99%

“…This implies that the use of IT and its performance impact cannot be independent from the firm's business focus. Prior research has, thus far, not considered this aspect, despite the increasing importance of service innovations and the fact that more and more manufacturing and product‐centric firms complement or substitute their product business with services, a trend that is referred to as servitization (e.g., Kowalkowski, Gebauer, Kamp, and Parry, ). Given the specific service innovation requirements of information processing, as well as its increasing economic relevance, the second research question is: How does the degree of servitization of a firm impact the use and effectiveness of IT tools?…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Use and Efficacy of Information Technology in Innovation Processes: The Specific Role of Servitization

Kroh¹,

Luetjen²,

Globocnik³

et al. 2018

J of Product Innov Manag

106

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Innovation activities and, particularly, service innovations, impose high demands on a firm's information processing capabilities. IT tools are supposed to support internal and external information flows, thereby improving a firm's information processing capabilities. However, past research is indecisive about how IT tools influence innovation performance. Furthermore, past research has not considered that services have an increasingly relevant role in a firm's innovation portfolio that can complicate information processing. This study therefore draws on information processing theory and service innovation literature to develop a conceptual model that explains how IT use intensity—depending on the firm's business focus—affects innovation program performance. By using a cross‐industry, multi‐informant sample of the innovation programs of 116 firms, which were collected from 887 informants, this article provides empirical evidence that (i) intensive IT use in order to exchange information with internal and external stakeholders improves the firm‐wide market knowledge, which in turn has a positive impact on a firm's innovation program performance; (ii) the performance impact of market knowledge becomes stronger with increasing degrees of servitization; (iii) a higher degree of servitization reduces IT's use intensity. This research demonstrates the dilemma that servitized firms face: Their business focus hinders the use of IT tools, although the latter will enable them to gain more benefits from the improved market knowledge they create. Practitioner Points Intensive IT use positively influences the firm‐wide innovation performance. The intensive use of IT tools to strengthen internal information flows and IT tools to support exchange with external stakeholders increase a firm's market knowledge, which enhances the innovation program performance. Service innovations have higher information requirements than product innovations and profit therefore more from intensive IT use, but services' complexity hinders IT implementation. Firms with a higher degree of servitization use less IT, although they can profit more from the market knowledge IT tools create. Servitized firms need to install a flexible, modular, and open IT system for efficient IT use and to include all relevant internal and external stakeholders.

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Use and Efficacy of Information Technology in Innovation Processes: The Specific Role of Servitization

Kroh¹,

Luetjen²,

Globocnik³

et al. 2018

J of Product Innov Manag

106

View full text Add to dashboard Cite

show abstract

“…Although the literature on service implementation is growing fast, there is a lack of connection between the topics analysed by scholars and those that are of relevant for practitioners . The current academic literature on servitization and advanced services describes the phenomenon, provides some theoretical grounding, tests the relationship between service implementation and firm performance, and relates this strategy to a number of external and internal factors (Neely, 2008;Visnjic and Van Looy, 2013;Visnjic et al, 2015;Crozet and Millet, 2017;Kowalkowski et al, 2017). What practitioners are looking for, in contrast, relate to the challenges linked to the organisational change that a service strategy entails; the stages they need to follow, and what they should expect in each stage.…”

Section: Figure 1 the Service Implementation Dilemmamentioning

confidence: 99%

“…Analysing how some firms have failed to respond to servitization challenges has generated a debate around the process of deservitization of manufacturing firms (Kowalkowski et al, 2017).…”

Section: Key Servitization Strategiesmentioning

confidence: 99%

Service implementation in manufacturing: An organisational transformation perspective

Bustinza

Vendrell‐Herrero

Baines

2017

International Journal of Production Economics

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The topic of servitization of manufacturing continues to gain attention from both the engineering and business research communities. As a consequence, the conceptual foundations of servitization are now becoming better established, and attention is focusing on the processes through which manufacturers go to develop innovative service capabilities that enable them to successfully compete through services. This Special Issue sets out to focus on these transformation processes. In this introductory article we review the selected articles that comprise this Special Issue. We provide a framework to contextualize and understand the research findings reported in the Special Issue and reflect on the contributions of the research to the theory and practice of servitization. Through this process we seek to consolidate the stateof-the-art in this area and identify important, challenging, but potentially fruitful topics for future studies.

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“…Global enterprises fulfill customer satisfaction with trust and royalty [1,2]. The service sector is extremely significant in this competition [3,4]. In addition, the Logistics Service Provider (LSP) has become a role for smoothing cooperation, progressing association, and improving the value-added throughout the entire supply chain [5,6].…”

Section: Introductionmentioning

confidence: 99%

On LSP Lifecycle Model to Re-design Logistics Service: Case Studies of Thai LSPs

2020

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Improving service logistics is crucial in order to reciprocate customer needs. The paper aims to validate the Logistics Service Provider (LSP) Lifecycle Model for re-designing logistics service in three LSP case studies in Thailand. The lifecycle-stage evaluation was adapted to identify the current status in its lifecycle. Afterward, logistics service strategies were implemented according to the voice of the customer by Quality Function Deployment (QFD). The study combined the Logistics Service Provider (LSP) Lifecycle Model with the application of Industry 4.0 (I4.0) to improve service logistics. Case studies showed the implementation of the service logistics strategies with the feasibility solution of Industry 4.0.Sustainability 2020, 12, 2394 2 of 17 real-time information, and Circular Economy (CE) [21] are now among the basic customer requirements. Furthermore, customer behavior has changed too. Quick and immediate responses are expected. Information Technology (IT) has been increasingly used in the global business to satisfy the customer in terms of supply [22,23]. Today, Industry 4.0 is being used to accomplish the customer target, operation, and improvement in manufacturing [24,25]. Some examples of the advancement of Industry 4.0 are applying to self-learning automation, big data analytics, real-time information, Internet of Things (IoT), and smart sensors [26,27]. This improvement expands to the logistics industry in the form of, for example, on-demand delivery which offers an abrupt response to the customer [28,29]. The trend has changed rapidly around the world and the logistics service is demanded to support it. Therefore, LSPs need to innovate and create new service to address these complicated customer trends [30]. This paper demonstrates the use of the LSP Lifecycle Model to re-design the logistics service using three case-study LSPs in Thailand. It aims to address the research questions of whether the developed LSP Lifecycle Model is valid and if the Industry 4.0 concept is applicable and can be beneficial for LSPs. Firstly, the study identified the stage of the service. Secondly, services were re-designed using QFD. Thirdly, customer requirements were prioritized using the Multiple-Criteria Decision-Making (MCDM) tool. Finally, the Industry 4.0 concept was mapped to address these demands. Literature Review

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Servitization and deservitization: Overview, concepts, and definitions

Cited by 433 publications

References 45 publications

Use and Efficacy of Information Technology in Innovation Processes: The Specific Role of Servitization

Use and Efficacy of Information Technology in Innovation Processes: The Specific Role of Servitization

Service implementation in manufacturing: An organisational transformation perspective

On LSP Lifecycle Model to Re-design Logistics Service: Case Studies of Thai LSPs

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