Towards service‐oriented organisational culture in manufacturing companies

Abstract

Purpose -The purpose of this paper is to bring new insight into the barriers of service business development in installed base manufacturing companies by studying the transformation from an organisational culture perspective. It proposes a new framework that can be used both in studying the transition and in supporting the change within an organisation. Design/methodology/approach -A case study-based approach was applied together with conceptual work based on literature in order to construct the framework. The study was carried out in two manufacturing companies and the framework was tested on four other occasions. The data collection methods included interviews, organisational culture surveys and workshops. Findings -The paper provides a service culture and capability framework with tentative descriptions of transformations in the basic elements needed to facilitate the significant progress of a service business. It also gives empirical examples of how the transformation can manifest itself in organisational culture.Research limitations/implications -The framework is promising, but further research is needed in terms of theoretical and empirical validation. Practical implications -The paper contributes to supporting the transformation from a product-oriented culture towards a more customer-oriented and service-oriented culture. It suggests that the transformation can be facilitated by exploring and communicating new core task demands and synchronised development of customer relations, management, service development practices and service business understanding. It argues that this is also a possibility for renewing an entire organisation and improving its readiness for the future. Originality/value -This paper offers an essential, but little known organisation culture perspective to the theoretical discussion on industrial service business development.

Improvisation as a Prerequisite for the Dynamic Interplay of Production and Service in PSS: Insights of an Organizational Design Principle and a Game-based Learning Approach

“…As argued in PSS and the related servitization literature, PSS-oriented organizations are crucially dependent on the adaptability and reorganization of behavioral routines in the force field of two traditionally contradicted paradigms and logics [6,7,13,29]. In PSS, for example, the tension of efficiency (product) versus effectiveness (service) has traditionally been considered as an either-or decision, but has to be preserved as a duality [9,12].…”

“…Through this dualistic organizational design principle, PSS providers aim at gaining the capabilities for more customer-specific individualized offerings, without completely replacing the product-related manifestations, such as a high degree of standardization and structural orientation [see e.g. 6,9,10,11]. This coexistence of two rather opposing logics of organizing is established for coping with the demands of a mutual adjustment between production, service and the customer along the PSS lifecycle [11,12,13].…”

“…However, the transformation towards a PSS provider, particularly for these organizations, requires extensive organizational development and learning processes [e.g. 2,3,6,7]. This is related to significant transformational challenges regarding organizational structures, processes, routines and capabilities [see e.g.…”

Grouping Characteristics of Leadership in IT and Non-IT Organizations - Factor Analysis

“…Nuutinen and Lappalainen (2012) 28 suggest insights on barriers to business development in manufacturing companies from the perspective of leadership and organizational culture, and propose a framework for understanding the transformation and change within an organization. 29 have examined that whether the nature of leadership theories proposed in the early twenty-first century are valid among leaders of enterprises across the world and found that there exist significant differences in their approaches for decision making.…”

Analysis on Leadership Characteristics of Managers of Information Technology and Non- Information Technology Organizations with Special Reference to Karnataka

“…Nuutinen and Lappalainen (2012) [11] suggest insights on barriers to business development in manufacturing companies from the perspective of leadership and organizational culture, and propose a framework for understanding the transformation and change within an organization.…”