IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v228y2020ics0925527320301316.html
   My bibliography  Save this article

The impact of service-oriented organizational design factors on firm performance: The moderating role of service-oriented corporate culture

Author

Listed:
  • Yan, Kaining
  • Li, Gang
  • Cheng, T.C.E.

Abstract

While manufacturing firms increasingly adopt servitization, with which they shift the basis of their competitive edge from the product-based mode to the service-based mode, they have to find approaches to implement servitization successfully. An initial attempt to achieve this is to make proper internal organizational changes towards service orientation. However, how do these changes affect firm performance has not been inquired adequately. In addition, limited studies have integrated cultural factors into the relationship between internal changes and firm performance. Focusing on two organizational design (OD) factors, i.e., service-oriented organizational structure (SOOS) and service-oriented human resource management (SOHR), and the cultural factor of service-oriented corporate culture (SOCC), we draw on resource-based theory (RBT) and structural contingency theory (SCT) to conceptualize SOOS, SOHR, and SOCC as tangible organizational, tangible intellectual, and intangible organizational resources, respectively, with a view to ascertaining the direct impacts of SOOS and SOHR on firm performance, as well as the moderating role of SOCC. Based on analysis of data collected from 207 Chinese manufacturing firms, we find that SOOS and SOHR impact firm performance differently, while SOCC differentially moderates the effects of the two OD factors on firm performance. Our findings provide an alternative theoretical lens by combining RBT and SCT to account for the success of firms’ servitization transformation.

Suggested Citation

  • Yan, Kaining & Li, Gang & Cheng, T.C.E., 2020. "The impact of service-oriented organizational design factors on firm performance: The moderating role of service-oriented corporate culture," International Journal of Production Economics, Elsevier, vol. 228(C).
    • Handle: RePEc:eee:proeco:v:228:y:2020:i:c:s0925527320301316
    DOI: 10.1016/j.ijpe.2020.107745
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527320301316
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2020.107745?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kirkman, Bradley L. & Chen, Gilad, 2011. "Maximizing Your Data or Data Slicing? Recommendations for Managing Multiple Submissions from the Same Dataset," Management and Organization Review, Cambridge University Press, vol. 7(3), pages 433-446, November.
    2. Gautam Ray & Jay B. Barney & Waleed A. Muhanna, 2004. "Capabilities, business processes, and competitive advantage: choosing the dependent variable in empirical tests of the resource‐based view," Strategic Management Journal, Wiley Blackwell, vol. 25(1), pages 23-37, January.
    3. Arun Rai & Xinlin Tang, 2010. "Leveraging IT Capabilities and Competitive Process Capabilities for the Management of Interorganizational Relationship Portfolios," Information Systems Research, INFORMS, vol. 21(3), pages 516-542, September.
    4. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    5. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    6. Green, Maxwell H. & Davies, Philip & Ng, Irene C.L., 2017. "Two strands of servitization: A thematic analysis of traditional and customer co-created servitization and future research directions," International Journal of Production Economics, Elsevier, vol. 192(C), pages 40-53.
    7. N. Venkatraman & John E. Prescott, 1990. "Environment‐strategy coalignment: An empirical test of its performance implications," Strategic Management Journal, Wiley Blackwell, vol. 11(1), pages 1-23, January.
    8. Wolfgang Ulaga & Werner Reinartz, 2011. "Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully," Post-Print hal-00642039, HAL.
    9. Cenamor, J. & Rönnberg Sjödin, D. & Parida, V., 2017. "Adopting a platform approach in servitization: Leveraging the value of digitalization," International Journal of Production Economics, Elsevier, vol. 192(C), pages 54-65.
    10. Andrew Davies, 2004. "Moving base into high-value integrated solutions: a value stream approach," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 13(5), pages 727-756, October.
    11. Burton, Jamie & Story, Vicky M. & Raddats, Chris & Zolkiewski, Judy, 2017. "Overcoming the challenges that hinder new service development by manufacturers with diverse services strategies," International Journal of Production Economics, Elsevier, vol. 192(C), pages 29-39.
    12. M. Antioco & R.K. Moenaert & A. Lindgreen & M.G.M. Wetzels, 2008. "Organizational antecedents to and consequences of service business orientations in manufacturing companies," Post-Print hal-00285794, HAL.
    13. Zheng, Wei & Yang, Baiyin & McLean, Gary N., 2010. "Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management," Journal of Business Research, Elsevier, vol. 63(7), pages 763-771, July.
    14. Rabetino, Rodrigo & Kohtamäki, Marko & Gebauer, Heiko, 2017. "Strategy map of servitization," International Journal of Production Economics, Elsevier, vol. 192(C), pages 144-156.
    15. Tan, Kim Hua & Ji, Guojun & Chung, Leanne & Wang, Ching-Hsin & Chiu, Anthony & Tseng, M.L., 2019. "Riding the wave of belt and road initiative in servitization: Lessons from China," International Journal of Production Economics, Elsevier, vol. 211(C), pages 15-21.
    16. Zhou, Dan & Yan, Tingting & Zhao, Lilong & Guo, Jingjing, 2020. "Performance implications of servitization: Does a Manufacturer's service supply network matter?," International Journal of Production Economics, Elsevier, vol. 219(C), pages 31-42.
    17. Gebauer, Heiko & Gustafsson, Anders & Witell, Lars, 2011. "Competitive advantage through service differentiation by manufacturing companies," Journal of Business Research, Elsevier, vol. 64(12), pages 1270-1280.
    18. Kingshuk K. Sinha & Andrew H. Van de Ven, 2005. "Designing Work Within and Between Organizations," Organization Science, INFORMS, vol. 16(4), pages 389-408, August.
    19. Droge, Cornelia & Vickery, Shawnee K. & Jacobs, Mark A., 2012. "Does supply chain integration mediate the relationships between product/process strategy and service performance? An empirical study," International Journal of Production Economics, Elsevier, vol. 137(2), pages 250-262.
    20. Michael Antioco & Rudy Moenaert & Adam Lindgreen & Martin Wetzels, 2008. "Organizational antecedents to and consequences of service business orientations in manufacturing companies," Post-Print hal-02312526, HAL.
    21. Zhai, Endong & Shi, Yongjiang & Gregory, Mike, 2007. "The growth and capability development of electronics manufacturing service (EMS) companies," International Journal of Production Economics, Elsevier, vol. 107(1), pages 1-19, May.
    22. Gebauer, Heiko & Fleisch, Elgar & Friedli, Thomas, 2005. "Overcoming the Service Paradox in Manufacturing Companies," European Management Journal, Elsevier, vol. 23(1), pages 14-26, February.
    23. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    24. Valérie Mathieu, 2001. "Service strategies within the manufacturing sector: benefits, costs and partnership," Post-Print hal-01796269, HAL.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Olivera Simovic & Miha Lesjak & Đurđica Perović & Eva Podovšovnik, 2023. "Measuring Organizational Culture in Hotels, Restaurants and Travel Agencies in Montenegro," Sustainability, MDPI, vol. 15(3), pages 1-25, February.
    2. Zhang, Junnan & Sun, Xiaohua & Yuan, Fang & Liu, Xiaoling, 2023. "Which type of servitization promotes firm performance: Embedded or hybrid?," Economic Modelling, Elsevier, vol. 126(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Rabetino, Rodrigo & Kohtamäki, Marko & Gebauer, Heiko, 2017. "Strategy map of servitization," International Journal of Production Economics, Elsevier, vol. 192(C), pages 144-156.
    2. Wim Coreynen & Arjen van Witteloostuijn & Johanna Vanderstraeten, 2021. "Toward Servitized Research: An Integrated Approach for Sustainable Product-Service Innovation," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    3. Shah, Syed Aamir Ali & Jajja, Muhammad Shakeel Sadiq & Chatha, Kamran Ali & Farooq, Sami, 2020. "Servitization and supply chain integration: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 229(C).
    4. Johansson, A. Elisabeth & Raddats, Chris & Witell, Lars, 2019. "The role of customer knowledge development for incremental and radical service innovation in servitized manufacturers," Journal of Business Research, Elsevier, vol. 98(C), pages 328-338.
    5. Kohtamäki, Marko & Einola, Suvi & Rabetino, Rodrigo, 2020. "Exploring servitization through the paradox lens: Coping practices in servitization," International Journal of Production Economics, Elsevier, vol. 226(C).
    6. Gebauer, Heiko & Saul, Caroline, 2014. "Eine bibliometrische Analyse des Forschungsstandes und der zukünftigen Forschungsfragen für die Transformation vom Produzenten zum Dienstleister," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(4), pages 229-249.
    7. Bernhard Dachs & Sabine Biege & Martin Borowiecki & Gunter Lay & Angela Jäger & Doris Schartinger, 2014. "Servitisation of European manufacturing: evidence from a large scale database," The Service Industries Journal, Taylor & Francis Journals, vol. 34(1), pages 5-23, January.
    8. Myungjin Hyun & Jieun Kim, 2021. "Challenge or opportunity? A case of tire rental servitization from financial and channel perspectives," Service Business, Springer;Pan-Pacific Business Association, vol. 15(1), pages 1-17, March.
    9. Zhou, Dan & Yan, Tingting & Dai, Weiqi & Feng, Junzheng, 2021. "Disentangling the interactions within and between servitization and digitalization strategies: A service-dominant logic," International Journal of Production Economics, Elsevier, vol. 238(C).
    10. Mar’atus Sholihah & Tatsuru Maezono & Yuya Mitake & Yoshiki Shimomura, 2020. "Formulating Service-Oriented Strategies for Servitization of Manufacturing Companies," Sustainability, MDPI, vol. 12(22), pages 1-30, November.
    11. Wang, Yanping & Gao, Jie & Wei, Zelong, 2022. "The double-edged sword of servitization in radical product innovation: The role of latent needs identification," Technovation, Elsevier, vol. 118(C).
    12. Bustinza, Oscar F. & Lafuente, Esteban & Rabetino, Rodrigo & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2019. "Make-or-buy configurational approaches in product-service ecosystems and performance," Journal of Business Research, Elsevier, vol. 104(C), pages 393-401.
    13. Pedro E. Minaya & Lucía Avella & Juan A. Trespalacios, 2023. "The effects of digital servitization on business competitiveness: A case study of Spanish manufacturers," Journal of International Entrepreneurship, Springer, vol. 21(2), pages 180-213, June.
    14. Yu Zhang & Yajuan Wang & Yao Li, 2021. "Facilitating Servitization in Manufacturing Firms: The Influence of Strategic Orientation," Sustainability, MDPI, vol. 13(24), pages 1-20, December.
    15. Siri Jagstedt & Magnus Persson, 2019. "Using Platform Strategies In The Development Of Integrated Product-Service Solutions," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 23(04), pages 1-36, May.
    16. David Hidalgo-Carvajal & Ruth Carrasco-Gallego & Gustavo Morales-Alonso, 2021. "From Goods to Services and from Linear to Circular: The Role of Servitization’s Challenges and Drivers in the Shifting Process," Sustainability, MDPI, vol. 13(8), pages 1-26, April.
    17. Ornella Benedettini, 2022. "Structuring Servitization-Related Capabilities: A Data-Driven Analysis," Sustainability, MDPI, vol. 14(9), pages 1-20, May.
    18. Xing, Yijun & Liu, Yipeng & Davies, Philip, 2023. "Servitization innovation: A systematic review, integrative framework, and future research directions," Technovation, Elsevier, vol. 122(C).
    19. Jovanovic, Marin & Raja, Jawwad Z. & Visnjic, Ivanka & Wiengarten, Frank, 2019. "Paths to service capability development for servitization: Examining an internal service ecosystem," Journal of Business Research, Elsevier, vol. 104(C), pages 472-485.
    20. Blichfeldt, Henrik & Faullant, Rita, 2021. "Performance effects of digital technology adoption and product & service innovation – A process-industry perspective," Technovation, Elsevier, vol. 105(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:228:y:2020:i:c:s0925527320301316. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.