Servitization in Project‐Based Firms

Galera‐Zarco, Carlos; Morales-Gallego, Matilde; Pérez-Aróstegui, María Nieves

doi:10.1002/jsc.1980

Cited by 12 publications

(20 citation statements)

References 57 publications

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“…It requires substantial modifications and adjustments to the organisational design (Zighan et al , 2018). The PBOs have to adopt a flexible and adaptive organisational structure to offer extra services (Artto et al , 2015; Galera-Zarco et al , 2014; Kujala et al , 2013). However, few studies are focussing on structural adaptation in PBOs (Miterev et al , 2017).…”

Section: Introductionmentioning

confidence: 99%

Servitisation through structural adaptation

Zighan

Alkalha

Bamford

et al. 2021

JSTP

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PurposeThe purpose of this study is to investigate the structural changes needed for project-based organisations (PBOs) to synthesise their project operations and services following the servitisation strategy. It addresses the question of how PBOs should change their organisational structure fitting with service provision strategy.Design/methodology/approachThis study followed an exploratory research method using a single in-depth case with evidence collected from 51 project managers from five different industry sectors: construction, oil and gas, IT, logistics and health careFindingsCapitalising on organisational design theory, it has been found that successfully extending PBOs' outcomes into a system of both project output and extra services requires an adjustment of organisational structure that creates greater value for both companies and customers. This required adjustment has been divided into five main categories: (1) collaboration cross-project and customers; (2) flexible workflow, (3) decentralised decision-making, (4) wide span of control and (5) project governance. However, the findings indicate that success can only be ensured by particular mutually coordinated organisational designs with a suitable balance of products and servicesPractical implicationsThis study presents vital indicators to PBOs practitioners when deploying servitisation within their operational strategy by adjusting the organisation's design.Social implicationsServitisation could add both economic and social values for a diverse set of project stakeholders. However, the sustainability performance of servitisation in servitised project-based organisations is an outcome of reducing the discrepancy between project operation and service provision activities.Originality/valueThis study contributes to the body of knowledge and proposes a structural alteration process in PBOs to help align project operations and service provision activities. It explains how project-based organisations reconfigure their resources to provide services.

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Section: Introductionmentioning

confidence: 99%

Servitisation through structural adaptation

Zighan

Alkalha

Bamford

et al. 2021

JSTP

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“…Brady et al [58] first introduced the idea of offering combinations of products and services, "integrated solutions", to better address client requirements throughout the project's life cycle. Similarly, the literature identifies enablers which add services to the business model of project-based firms [59], and frameworks that cater for the offering of comprehensive client solutions throughout the entire project [60,61].…”

Section: Servitization In the Construction Sectormentioning

confidence: 99%

“…In the construction industry, the operational costs of an infrastructure or building usually outweigh the design and construction phase costs [62]. The above, together with the positive impact of involving the client in the project's early stages [63], led to the proposition that the adoption of business models able to encompass the different project stages was the most suitable way to unleash the sector's servitization potential [61]. In this regard, and enabled by the proliferation of Public-Private Partnerships (PPP), a trend can be seen in design and construction firms engaging in the operational stages of built assets [64].…”

Section: Servitization In the Construction Sectormentioning

confidence: 99%

“…Recent studies in the literature look at the interplay of digitalization and service orientation [65,66], and at identifying the key challenges facing its implementation [67]. Nevertheless, its application in this sector is mainly seen from a business model perspective [54,61,68]. Yet, practices, routines, and patterns concerning how organisations in the construction sector can become more serviceoriented remains largely unexplored [69], and is one of the factors driving this research.…”

Section: Servitization In the Construction Sectormentioning

confidence: 99%

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Exploring Servitization in Industrial Construction: A Sustainable Approach

Galera‐Zarco

Campos

2021

Sustainability

Self Cite

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Off-site manufacturing is emerging as an advantageous production model in the construction industry. In recent years, many tier 1 construction companies are including off-site production as part of their portfolio. Likewise, this change of model is attracting new entrants to the sector. The shift from the traditional on-site construction model to off-site manufacturing is unleashing positive impacts on projects in terms of cost, time efficiency, sustainability, and improved quality. Nonetheless, this phenomenon has yet to be analysed from the perspective of how this change in production processes influences the inclusion of services in company business models. This study explores whether and how industrialisation arises as an enabler for servitization in the construction sector. By means of an in-depth case study, our research identifies different product-service system (PSS) typologies associated with industrial construction and reveals their potential to increase additional services. Furthermore, the research sheds light on how industrial construction provides an opportunity to integrate offers and features that work towards reducing the environmental impact of construction projects and the operation and maintenance of built assets.

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“…In order to successfully meet this challenge, manufacturers are increasingly adding services to their value proposition, whether by a joint proposal or by substituting the property of the good and using a strategy that has been named servitization (Vandermerve and Rada, 1988). These new hybrid product-service systems or fully servitized systems have been gaining momentum as manufacturers have realized that traditional, well-known downstream services are not 'a necessary evil' but a source of competitiveness based on the value offered to the customers (Galera-Zarco et al, 2014;Vendrell-Herrero et al, 2014).…”

Section: Conceptual Background 21 Servitization Territories and Kimentioning

confidence: 99%

Does distance really matters? Assessing the role of KIBS proximity in firm´'s servitization capacity: evidence from the Basque Country

Opazo‐Basáez¹,

Cantín²,

Campos³

2020

IIRR-JORR

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Servitization strategy is increasingly recognized as a key source of value with important competitive and economic potential across the globe. Over the years, it has been proven to contribute to territorial performance through the provision of services to manufacturing businesses. Such contribution, however, has been to a large extent consequential to the configuration of local industrial structures, and most importantly, by interconnectedness between manufacturing firms and knowledge intensive business services (KIBS) firms. Hence, the process of territorial servitization is highly conditioned to the association between manufacturing businesses and KIBS firms. To date, territorial servitization literature mostly describes the implications of KIBS firms for service deployment and service innovation in manufacturing, considering knowledge and technological capabilities as main variables for its success. Nevertheless, the literature is silent on how geographical distance between KIBS firms and manufacturing companies may affect servitization capacity. Therefore, this research attempts to disclose the importance of geographical distance of KIBS firms in manufacturers´ servitization capacity. In doing so, we analyze two manufacturing companies; Alpha and Beta, both located in the Basque country but collaborating with KIBS firms in different geographical areas, “inside” and “outside” the Basque region. Through a qualitative study based on (1) measuring firm’s capacity for servitization, and (2) in-depth interviews, results suggest that geographical distance in terms of proximity plays a key role on the KIBS-Manufacturer relationship for servitization capacity, and require to be considered as an important aspect for successful territorial servitization.

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Servitization in Project‐Based Firms

Abstract: Project‐based firms are transforming their business models in order to add services to their offers, with the consequence that their business projects are beginning to be conceived as long processes in which servitization takes place.

Cited by 12 publications

References 57 publications

Servitisation through structural adaptation

Servitisation through structural adaptation

Exploring Servitization in Industrial Construction: A Sustainable Approach

Does distance really matters? Assessing the role of KIBS proximity in firm´'s servitization capacity: evidence from the Basque Country

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