Enhancing Servitization in SMEs: The Role of Cost and Performance Measurement Tools

Lino Cinquini (), Cristina Campanale (), Alessandro Marelli (), Sara Giovanna Mauro () and Andrea Tenucci ()
Additional contact information
Lino Cinquini: Institute of Management, Sant’Anna School of Advanced Studies
Cristina Campanale: University of Pisa, Department of Economics and Management
Alessandro Marelli: University of Teramo, Department of Political Science
Sara Giovanna Mauro: University of Modena and Reggio Emilia, Department of Economics Marco Biagi
Andrea Tenucci: Institute of Management, Sant’Anna School of Advanced Studies

A chapter in Management of SMEs and Startups, 2026, pp 59-86 from Springer

Abstract: Abstract The servitization process in manufacturing firms involves transitioning from a product-centric approach to one that emphasizes services and integrated solutions. This shift has garnered increasing attention from both practitioners and academics in recent years. The advancement of digital technologies is expected to support and enhance this transition, potentially increasing the creation of value. Despite this, the role of cost and performance measurement in enhancing servitization, within Small and Medium-sized Enterprises (SMEs), remains underexplored. Given the significance of SMEs to economic growth, it is crucial to examine how these enterprises can be assisted in overcoming common challenges, such as inadequate management accounting and control systems. This research aims to explore the relationship between servitization strategies and the adoption of cost and performance measurement tools, interpreting these tools as internal organizational resources that shape and support the strategic transition toward service-oriented business models. The study is grounded in the theoretical frameworks of the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT) and it is based on a multiple case study of 38 SMEs in Italy, utilizing structured interviews. The results indicate that cost and performance measurement tools could aid in the shift toward a service-oriented model, and there is a pressing need for the development of new accounting capabilities alongside organizational and operational advancements. Further, this study addresses the underexplored intersection between servitization and cost & performance measurement tools (C&PM) in SMEs. It offers a novel servitization strategy matrix that classifies SMEs based on both current and future service orientation. This matrix enhances our understanding of how managerial control systems evolve across different stages of servitization and contributes to bridging the gap between strategic management and accounting practices in small businesses.

Keywords: Servitization; Management accounting and control; Performance measurement; Cost management; Strategic decision-making; Small and medium-sized enterprises (SMEs) (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:fgfchp:978-3-032-17538-0_4

Ordering information: This item can be ordered from
http://www.springer.com/9783032175380

DOI: 10.1007/978-3-032-17538-0_4

Access Statistics for this chapter

More chapters in FGF Studies in Small Business and Entrepreneurship from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().