When servitized manufacturers globalise: becoming a provider of global services

Kreye, Melanie E.

doi:10.1108/ijopm-11-2021-0714

Cited by 7 publications

(4 citation statements)

References 43 publications

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“…In many industries, the hardware part of customer value is increasingly accompanied, if not replaced, by software, which determines much of the differentiation, customization and upgrade capacities (Autry et al ., 2013; Favoretto et al. , 2022; Kreye, 2022). Therefore, transitioning from a hardware-focused SC to one where software is also important can create new challenges (Brown et al ., 2000).…”

Section: Related Literaturementioning

confidence: 99%

“…However, the boundary between goods and services has progressively blurred, with customers often acquiring a "product pack" of integrated goods and services (Catalan and Kotzab, 2003;Lightfoot et al, 2013). In many industries, the hardware part of customer value is increasingly accompanied, if not replaced, by software, which determines much of the differentiation, customization and upgrade capacities (Autry et al, 2013;Favoretto et al, 2022;Kreye, 2022). Therefore, transitioning from a hardware-focused SC to one where software is also important can create new challenges (Brown et al, 2000).…”

Section: Ijpdlm 544mentioning

confidence: 99%

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Who changes what, when and where? Elaborating postponement when integrating hardware and software objects in global supply chains

Prataviera,

Norrman

2024

IJPDLM

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PurposeThe postponement principle concerns defining when and where value is added, usually referring to hardware components for physical products. However, in modern supply chains, software’s importance is increasing, impacting the timing and location of value-adding operations. Lacking insights into software-driven implications for postponement, we aim at elaborating on the postponement principle by contextualizing its evolution when integrating different objects (i.e. hardware and software).Design/methodology/approachWe adopted an abductive approach to elaborate on the existing knowledge with original empirical insights. A single-case study with four subcases allowed us to explore postponement dimensions in the context of a global high-tech enterprise offering products that integrate hardware and software objects. As global supply chains involve multiple jurisdictions with heterogeneous regulations, we also analyzed in depth the emerging fiscal and legal implications.FindingsBesides where and when value is added, the study illustrates that deciding who (i.e. what legal entity) is carrying out what operation on what kind of object is highly important. Moreover, fiscal and legal implications for the various legal entities strongly depend on what operations are executed and in which jurisdiction (where). The study identifies critical interrelationships among postponement dimensions when integrating hardware and software objects, highlighting the importance of understanding and managing their reciprocity with the emerging fiscal and legal risks.Originality/valueWe elaborate on the postponement principle by contextualizing its applications when integrating hardware and software objects in global supply chains, which include multiple jurisdictions. By formalizing the impact of the who dimension, the study contributes to developing the interorganizational perspective for postponement. Moreover, it extends the traditional cost perspective for postponement beyond the trade-off between responsiveness and cost-efficiency, suggesting that firms applying global postponement should extend their focus to also examine fiscal and legal risks for all the legal entities involved.

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Section: Related Literaturementioning

confidence: 99%

Section: Ijpdlm 544mentioning

confidence: 99%

Who changes what, when and where? Elaborating postponement when integrating hardware and software objects in global supply chains

Prataviera,

Norrman

2024

IJPDLM

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“…As opposed to the primary and tertiary sectors, manufacturing enterprises are more relevant to the supply chain interaction [90]. One of the concepts of service-based manufacturing is that companies should be relationship-oriented, thus building long-term and strong ties with their customers [91]. This long-term strategic relationship based on services requires manufacturers to cooperate with their customers more broadly and strategically at multiple structures and levels [92].…”

Section: Supply Chain Relationships and Corporate Competitive Advantagementioning

confidence: 99%

Digital Transformation: Moderating Supply Chain Concentration and Competitive Advantage in the Service-Oriented Manufacturing Industry

Tana,

Chai

2023

Systems

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One of the service-based manufacturing concepts emphasizes relationship orientation and building strong customer relationships, while Industry 4.0 enables companies to be proactive in the supply chain. However, to achieve digitally driven growth, service-based manufacturing requires a shift away from the traditional upstream and downstream hierarchy toward a collaborative model. In this study, service-oriented manufacturing companies in the packaging and printing industries are selected as case studies to examine the relationship between supply chain concentration, digital transformation, and corporate competitive advantage from the perspectives of power control and equilibrium. The results show that a high supply chain concentration harms firms’ competitive advantage, especially when power is unevenly distributed. Moreover, digital transformation plays a moderating role in this relationship, suggesting that it is possible to improve firms’ competitiveness and further equalize the power balance by applying digital technologies to supply chain processes. The study revealed significant heterogeneity within the group of companies in terms of ownership type, dual management roles, and company size. In summary, this study makes a unique contribution to the growing research field of supply chain digital transformation. It provides valuable insights from a power balance perspective for service-oriented manufacturing companies seeking to enhance their competitive advantage in a rapidly changing market environment.

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Guest editorial: Digital service innovation: ontology, context and theory

Opazo Basáez,

Vendrell-Herrero,

Bustinza

et al. 2024

JOSM

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The emergence of digital service innovation In recent decades, there has been a growing recognition of the strategic importance of services in driving industrial competitiveness, leading to a surge in multidisciplinary research in service and service-related areas on a global scale (Kreye, 2022). This increased focus on services from academia and practitioners can be attributed to the maturation and widespread adoption of servitization [1] as a strategic phenomenon in industrial environments (Vandermerwe and Rada, 1988;Vandermerwe and Erixon, 2023). As a result, research on servitization has given rise to different branches of study, including digital servitization, which holds great relevance for competitiveness in today's business landscape (Vendrell-Herrero et al., 2017;Kamalaldin et al., 2020). Digital servitization involves leveraging digitalization and related technologies to greatly enhance service offerings. This approach represents a new starting point for service-based competitiveness, with digital interaction and interconnectivity with customers and products being key drivers of business value (Sj€ odin et al., 2020).However, despite the inherent capacity of digital technologies in shaping and innovating services, traditional service management frameworks detach service constituents from the technological innovation requirements necessary for digitallyenabled service provision, diminishing the relevance, in some way, of the technological components that support both the development and the delivery of up-to-date innovative service propositions. An overlooked and unexplored debate in service research, brought forth by Opazo-Bas aez et al. (2022), reveals the ineffectiveness of service classification in industrial environments and establishes the foundation for the development of this special issue. A prime example of this can be found in the classification proposed by global innovation frameworks, such as the OECD's Oslo Manual, which categorizes service innovation as a non-technological innovation source. A rather decontextualized and simplistic categorization, particularly for current manufacturing sectors, where service provision cannot be decoupled from digital infrastructures (Kohtam€ aki et al., 2020;Kowalkowski and Witell, 2020).In light of the above, the concept of digital service innovation (DSI) arises from an updated and innovative perspective on service provision, in which both the service offering and the technological components that support it represent a single entity that can be adapted in terms of both the service itself and the technology it relies on. Accordingly, the technological building blocks underpinning the service entity enable the continuous reconfiguration of the service design to the benefit of the user/customer experience. In other words, the service itself becomes a digital innovation source that can be completely revamped in relation to the service's specificities. In this manner, DSI represents a pioneering source of technological innovation, in which digital technolog...

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When servitized manufacturers globalise: becoming a provider of global services

Cited by 7 publications

References 43 publications

Who changes what, when and where? Elaborating postponement when integrating hardware and software objects in global supply chains

Who changes what, when and where? Elaborating postponement when integrating hardware and software objects in global supply chains

Digital Transformation: Moderating Supply Chain Concentration and Competitive Advantage in the Service-Oriented Manufacturing Industry

Guest editorial: Digital service innovation: ontology, context and theory

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