The Role of Financialization When Moving up the Service Ladder

Bart Kamp () and Ibon Gil de San Vicente ()
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Bart Kamp: Orkestra-Basque Institute of Competitiveness
Ibon Gil de San Vicente: Orkestra-Basque Institute of Competitiveness

A chapter in The Palgrave Handbook of Servitization, 2021, pp 215-228 from Springer

Abstract: Abstract Servitization is an organizational change process. As organizations move from offering base services to advanced services, the relevance of financial changes increases. Against this backdrop, this chapter puts the spotlight on the concept of financialization, as the increasing preponderance of financial motives, markets, actors and institutions in the conduct of business. Accordingly, it argues that outcome-based services can be characterized as complex financial products, which require financial security, routines and know-how to be built-in by the firms offering them due to the uncertainties and risks inherent to these services. Consequently, it reveals four spheres of doing business that may require adjustments when providing outcome-based services, i.e.: accountancy and financial management practices; access to external financial actors and novel financial technologies; development and leveraging of financial management and engineering skills within the firm; and customer or B2B relationship management.

Keywords: Outcome-based contracts; Advanced services; Fintech; Financial management; Risks (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-75771-7_14

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DOI: 10.1007/978-3-030-75771-7_14

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