Framing the servitization transformation process: A model to understand and facilitate the servitization journey

Tim Baines, Ali Ziaee Bigdeli, Rui Sousa and Andreas Schroeder

International Journal of Production Economics, 2020, vol. 221, issue C

Abstract: The concept of servitization is well established in the literature, and yet the processes of organisational change that manufacturers undergo to compete through services have received much less attention. Therefore, this paper develops a model that enables a description of the servitization processes, the principal stages of organisational change, and the forces impacting these processes. It is based on a series of 14 case studies of the process of servitization over time in multinational manufacturers. Evidence and analysis from these cases are used to establish that manufacturers undergo four stages of organisational maturity (Exploration, Engagement, Expansion and Exploitation), through which an organisation progresses according to the pressures of five principal forces (customer pull, technology push, value network positioning, organisational readiness, and organisational commitment). This progression can be characterised as a business growth model with multiple crises or tipping points. This research contributes to our understanding of the process of servitization and proposes a model which can be used to explain progression. It also forms the basis to better prepare manufacturers as to what to expect as they embark on a servitization journey.

Keywords: Servitization; Advanced services; Process; Transition; Transformation; Organisational change (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (22)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:221:y:2020:i:c:s0925527319302737

DOI: 10.1016/j.ijpe.2019.07.036

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