Overcoming the Service Paradox in Manufacturing Companies

Heiko Gebauer, Elgar Fleisch and Thomas Friedli

European Management Journal, 2005, vol. 23, issue 1, 14-26

Abstract: We observed that extending the service business in manufacturing companies often leads to a "service paradox." Where there is such a paradox, substantial investment in extending the service business leads to increased service offerings and higher costs, but does not generate the expected correspondingly higher returns. We have worked with more than 30 equipment manufacturing companies to gain an understanding as to why manufacturing companies often fail to exploit the financial benefit of extending their service business. Based on this broad research, we attempt to provide guidance for managers in manufacturing companies seeking to successfully extend their service business.

Keywords: Service; business; Cognitive; phenomena; Organizational; structuring (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (123)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0263237304001392
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eurman:v:23:y:2005:i:1:p:14-26

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/115/bibliographic
http://www.elsevier. ... me/115/bibliographic

Access Statistics for this article

European Management Journal is currently edited by Michael Haenlein

More articles in European Management Journal from Elsevier
Bibliographic data for series maintained by Catherine Liu ().