The impact of servitization on firm performance: a meta-analysis

Abstract

Purpose Servitization has been recognized as an effective means for manufacturers to achieve superior performance. However, the servitization-performance relationship is controversial since prior empirical studies have provided inconsistent and even contradictory results. Hence, the purpose of this paper is to provide a quantitative review on the servitization-performance relationship based on research findings reported in the extant literature. Design/methodology/approach Studies from 41 peer-reviewed journal articles were sampled and analyzed. A meta-analytic approach was adopted to conduct a quantitative review on the relationship between servitization and firm performance. Findings The results confirm a positive servitization-performance relationship. In addition, the results reveal that the observed servitization-performance relationship is influenced by the operationalization of constructs (servitization and performance) and control variables (industry and region). Originality/value As the first meta-analysis on the servitization-performance relationship, this study contributes to the servitization literature and provides future research directions.

Sustainable supply chain management towards disruption and organizational ambidexterity: A data driven analysis

“…Prior studies compared the ambidexterity effects on varied measures such as firm performance, supply chain competence, supplier product innovation, cooperative innovation, helping firms to create advantageous environments ( Cao et al, 2009 ; Gualandris et al, 2018 ; Bravo et al, 2018 ; Wang et al, 2018 ; Crescenzi and Gagliardi, 2018 ). Ponis and Koronis (2012) examined the SC network proactive plan and design ability to predict unexpected disruptive events, and adaptively respond to, while preserving the SC structure and function, and exceeding to a post operations-robust stage.…”

The Survival Benefits of Service Intensity for New Manufacturing Ventures: A Resource-Advantage Theory Perspective

“…Servitization has received increasing attention from both practitioners and scholars and has evolved into a broader cross-disciplinary area in service research (Oliva and Kallenberg 2003; Wise and Baumgartner 2000). Originally conceptualized by Vandermerwe and Rada (1988), servitization refers to value creation by adding services to products and defined as a “transformational process of adding services to products with a strategic transition from goods-dominant logic to service-dominant logic” (Wang, Lai, and Shou 2018, p. 1564). Servitization has become a route to improving profits and maintaining firm stability (Spohrer and Maglio 2008; Wise and Baumgartner 2000).…”

“…A decade ago, Neely (2008) reported that about a third of manufacturing firms were servitizing, and large firms such as IBM and Rolls Royce continue to derive a greater proportion of their revenues from services. Despite the growing prevalence of servitization, “the extant literature shows mixed findings” (Wang, Lai, and Shou 2018, p. 563), including the conclusion that more service infusion may not always be better (Forkmann et al 2017), and even that servitization can increase bankruptcy risk (Benedettini, Swink, and Neely 2017).…”

“…While the servitization literature has focused on the effects of service offerings on the financial performance of established firms (Wang, Lai, and Shou 2018), whether service intensity ultimately improves the survival odds of new manufacturing ventures 1 remains unexplored. Service intensity is defined as the ratio of service sales to total sales (Kwak and Kim 2016).…”

Assessment of Servitization Leagility Using Multi-Grade Fuzzy Approach

“…For example, Toyota uses 'Do not buy a forklift', Rolls-Royce applies 'Total Care Package' and 'Power by the Hour'. Also, Xerox implement documentation management business model rather than buying their machines (Wang et al, 2011;Elnadi and Shehab, 2016;Wang et al, 2018).…”