IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i5p1524-d145730.html
   My bibliography  Save this article

Uncovering Productivity Gains of Digital and Green Servitization: Implications from the Automotive Industry

Author

Listed:
  • Marco Opazo-Basáez

    (Deusto Business School, University of Deusto, Bilbao 48014, Spain)

  • Ferran Vendrell-Herrero

    (Birmingham Business School, University of Birmingham, Birmingham B152TT, UK)

  • Oscar F. Bustinza

    (Department of Business Management, University of Granada, Granada 18071, Spain)

Abstract

The growing industrial concern about sustainability challenges has driven vehicle and auto parts manufacturers to adopt service capabilities as a way to maintain competitiveness in compliance with environmental regulations. As a result, automakers have progressively integrated digital and green service initiatives to support operations and address environmental issues effectively. The present study examined the effect of digital and green servitization on the firm’s productivity. To test their effect quantitatively, this study used the ORBIS database to construct a multi-country sample containing 228 companies in the automotive industry. Our findings indicate that implementation of digital and green servitization is positively associated with higher productivity outcomes once the two forms of servitization coexist and operate jointly. Moreover, the results of the study underscore the importance of establishing a successional pathway of implementation priorities. Our evidence suggests that firms willing to offer green services should consider offering digital services first, as this is the only way to obtain productivity gains from green servitization.

Suggested Citation

  • Marco Opazo-Basáez & Ferran Vendrell-Herrero & Oscar F. Bustinza, 2018. "Uncovering Productivity Gains of Digital and Green Servitization: Implications from the Automotive Industry," Sustainability, MDPI, vol. 10(5), pages 1-17, May.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:5:p:1524-:d:145730
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/5/1524/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/5/1524/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gunasekaran, Angappa & Spalanzani, Alain, 2012. "Sustainability of manufacturing and services: Investigations for research and applications," International Journal of Production Economics, Elsevier, vol. 140(1), pages 35-47.
    2. Fernando F. Suarez & Michael A. Cusumano & Steven J. Kahl, 2013. "Services and the Business Models of Product Firms: An Empirical Analysis of the Software Industry," Management Science, INFORMS, vol. 59(2), pages 420-435, November.
    3. Thi-Nham Le & Chia-Nan Wang, 2017. "The Integrated Approach for Sustainable Performance Evaluation in Value Chain of Vietnam Textile and Apparel Industry," Sustainability, MDPI, vol. 9(3), pages 1-21, March.
    4. Caroline Rodrigues Vaz & Tania Regina Shoeninger Rauen & Álvaro Guillermo Rojas Lezana, 2017. "Sustainability and Innovation in the Automotive Sector: A Structured Content Analysis," Sustainability, MDPI, vol. 9(6), pages 1-23, May.
    5. Magnus Lodefalk, 2014. "The role of services for manufacturing firm exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 59-82, February.
    6. João Paulo Pessoa & John Van Reenen, 2014. "The UK Productivity and Jobs Puzzle: Does the Answer Lie in Wage Flexibility?," Economic Journal, Royal Economic Society, vol. 0(576), pages 433-452, May.
    7. Rönnberg Sjödin, David & Parida, Vinit & Kohtamäki, Marko, 2016. "Capability configurations for advanced service offerings in manufacturing firms: Using fuzzy set qualitative comparative analysis," Journal of Business Research, Elsevier, vol. 69(11), pages 5330-5335.
    8. Bishop, Justin D.K. & Axon, Colin J. & Bonilla, David & Banister, David, 2016. "Estimating the grid payments necessary to compensate additional costs to prospective electric vehicle owners who provide vehicle-to-grid ancillary services," Energy, Elsevier, vol. 94(C), pages 715-727.
    9. Reyes, Pedro M. & Li, Suhong & Visich, John K., 2016. "Determinants of RFID adoption stage and perceived benefits," European Journal of Operational Research, Elsevier, vol. 254(3), pages 801-812.
    10. Fabrizio Ceschin & Carlo Vezzoli, 2010. "The role of public policy in stimulating radical environmental impact reduction in the automotive sector: the need to focus on product-service system innovation," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 10(2/3), pages 321-341.
    11. Sabrina Cocca & Walter Ganz, 2015. "Requirements for developing green services," The Service Industries Journal, Taylor & Francis Journals, vol. 35(4), pages 179-196, February.
    12. Niko Schäpke & Ines Omann & Julia M. Wittmayer & Frank Van Steenbergen & Mirijam Mock, 2017. "Linking Transitions to Sustainability: A Study of the Societal Effects of Transition Management," Sustainability, MDPI, vol. 9(5), pages 1-36, May.
    13. Guy Fournier & Henning Hinderer & Daniel Schmid & René Seign & Manuel Baumann, 2012. "The new mobility paradigm: Transformation of value chain and business models," Enterprise and Work Innovation Studies, Universidade Nova de Lisboa, IET/CICS.NOVA-Interdisciplinary Centre on Social Sciences, Faculty of Science and Technology, vol. 8(8), pages 9-40, November.
    14. Matthieu Crozet & Emmanuel Milet, 2017. "Should everybody be in services? The effect of servitization on manufacturing firm performance," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 26(4), pages 820-841, December.
    15. Bergenwall, Amy L. & Chen, Chialin & White, Richard E., 2012. "TPS's process design in American automotive plants and its effects on the triple bottom line and sustainability," International Journal of Production Economics, Elsevier, vol. 140(1), pages 374-384.
    16. Frank Montabon & Mark Pagell & Zhaohui Wu, 2016. "Making Sustainability Sustainable," Journal of Supply Chain Management, Institute for Supply Management, vol. 52(2), pages 11-27, April.
    17. Poh Kam Wong & Zi-Lin He, 2005. "A comparative study of innovation behaviour in Singapore's KIBS and manufacturing firms," The Service Industries Journal, Taylor & Francis Journals, vol. 25(1), pages 23-42, January.
    18. Bustinza, Oscar F. & Vendrell-Herrero, Ferran & Baines, Tim, 2017. "Service implementation in manufacturing: An organisational transformation perspective," International Journal of Production Economics, Elsevier, vol. 192(C), pages 1-8.
    19. Visnjic, Ivanka & Neely, Andy & Jovanovic, Marin, 2018. "The path to outcome delivery: Interplay of service market strategy and open business models," Technovation, Elsevier, vol. 72, pages 46-59.
    20. Petra Christmann & Glen Taylor, 2001. "Globalization and the Environment: Determinants of Firm Self-Regulation in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 439-458, September.
    21. William G. Robinson & Paul W. Chan & Thomas Lau, 2016. "Sensors and sensibility: examining the role of technological features in servitizing construction towards greater sustainability," Construction Management and Economics, Taylor & Francis Journals, vol. 34(1), pages 4-20, January.
    22. Vendrell-Herrero, Ferran & Gomes, Emanuel & Bustinza, Oscar F. & Mellahi, Kamel, 2018. "Uncovering the role of cross-border strategic alliances and expertise decision centralization in enhancing product-service innovation in MMNEs," International Business Review, Elsevier, vol. 27(4), pages 814-825.
    23. Josef-Peter Schöggl & Morgane M. C. Fritz & Rupert J. Baumgartner, 2016. "Sustainability Assessment in Automotive and Electronics Supply Chains—A Set of Indicators Defined in a Multi-Stakeholder Approach," Sustainability, MDPI, vol. 8(11), pages 1-20, November.
    24. Lafuente, Esteban & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2017. "Territorial servitization: Exploring the virtuous circle connecting knowledge-intensive services and new manufacturing businesses," International Journal of Production Economics, Elsevier, vol. 192(C), pages 19-28.
    25. Kyujin Jung & Kenneth Chilton & Jesus N. Valero, 2017. "Uncovering stakeholders in public–private relations on social media: a case study of the 2015 Volkswagen scandal," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(3), pages 1113-1131, May.
    26. Wu, Kuo-Jui & Liao, Ching-Jong & Tseng, Ming-Lang & Chiu, Anthony S.F., 2015. "Exploring decisive factors in green supply chain practices under uncertainty," International Journal of Production Economics, Elsevier, vol. 159(C), pages 147-157.
    27. Luo, Yadong & Bu, Juan, 2016. "How valuable is information and communication technology? A study of emerging economy enterprises," Journal of World Business, Elsevier, vol. 51(2), pages 200-211.
    28. Gimenez, Cristina & Sierra, Vicenta & Rodon, Juan, 2012. "Sustainable operations: Their impact on the triple bottom line," International Journal of Production Economics, Elsevier, vol. 140(1), pages 149-159.
    29. Opresnik, David & Taisch, Marco, 2015. "The value of Big Data in servitization," International Journal of Production Economics, Elsevier, vol. 165(C), pages 174-184.
    30. Josef-Peter Schöggl & Morgane Fritz & Rupert Baumgartner, 2016. "Sustainability Assessment in Automotive and Electronics Supply Chains—A Set of Indicators Defined in a Multi-Stakeholder Approach," Post-Print hal-02547242, HAL.
    31. Claire S. Boland & Robb Kleine & Gregory A. Keoleian & Ellen C. Lee & Hyung Chul Kim & Timothy J. Wallington, 2016. "Life Cycle Impacts of Natural Fiber Composites for Automotive Applications: Effects of Renewable Energy Content and Lightweighting," Journal of Industrial Ecology, Yale University, vol. 20(1), pages 179-189, February.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. Oscar F. Bustinza & Ferrán Vendrell-Herrero & Francisco J. Sánchez-Montesinos & José Antonio Campos-Granados, 2021. "Should Manufacturers Support the Entire Product Lifecycle with Services?," Sustainability, MDPI, vol. 13(5), pages 1-14, February.
    3. Aquilante, Tommaso & Vendrell-Herrero, Ferran, 2021. "Bundling and exporting: Evidence from German SMEs," Journal of Business Research, Elsevier, vol. 132(C), pages 32-44.
    4. Upadhayay, Neha B. & Rocchetta, Silvia & Gupta, Shivam & Kamble, Sachin & Stekelorum, Rebecca, 2024. "Blazing the trail: The role of digital and green servitization on technological innovation," Technovation, Elsevier, vol. 130(C).
    5. Bustinza, Oscar F. & Opazo-Basaez, Marco & Tarba, Shlomo, 2022. "Exploring the interplay between Smart Manufacturing and KIBS firms in configuring product-service innovation performance," Technovation, Elsevier, vol. 118(C).
    6. Bustinza, Oscar F. & Vendrell-Herrero, Ferran & Gomes, Emanuel, 2020. "Unpacking the effect of strategic ambidexterity on performance: A cross-country comparison of MMNEs developing product-service innovation," International Business Review, Elsevier, vol. 29(6).
    7. Vendrell-Herrero, Ferran & Gomes, Emanuel & Bustinza, Oscar F. & Mellahi, Kamel, 2018. "Uncovering the role of cross-border strategic alliances and expertise decision centralization in enhancing product-service innovation in MMNEs," International Business Review, Elsevier, vol. 27(4), pages 814-825.
    8. Lombardi, Silvia & Santini, Erica & Vecciolini, Claudia, 2022. "Drivers of territorial servitization: An empirical analysis of manufacturing productivity in local value chains," International Journal of Production Economics, Elsevier, vol. 253(C).
    9. Freije, Inmaculada & de la Calle, Alberto & Ugarte, José V., 2022. "Role of supply chain integration in the product innovation capability of servitized manufacturing companies," Technovation, Elsevier, vol. 118(C).
    10. Vendrell-Herrero, Ferran & Bustinza, Oscar F. & Opazo-Basaez, Marco, 2021. "Information technologies and product-service innovation: The moderating role of service R&D team structure," Journal of Business Research, Elsevier, vol. 128(C), pages 673-687.
    11. S. Maryam Masoumi & Nima Kazemi & Salwa Hanim Abdul-Rashid, 2019. "Sustainable Supply Chain Management in the Automotive Industry: A Process-Oriented Review," Sustainability, MDPI, vol. 11(14), pages 1-30, July.
    12. Jieun Lee & Hyung-Deok Shin & Saehwa Hong, 2021. "Servitization of Global Manufacturing Business," Journal of Industry, Competition and Trade, Springer, vol. 21(4), pages 565-584, December.
    13. 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.
    14. Vendrell-Herrero, Ferran & Bustinza, Oscar F. & Opazo-Basaez, Marco & Gomes, Emanuel, 2023. "Treble innovation firms: Antecedents, outcomes, and enhancing factors," International Journal of Production Economics, Elsevier, vol. 255(C).
    15. Xing, Yijun & Liu, Yipeng & Davies, Philip, 2023. "Servitization innovation: A systematic review, integrative framework, and future research directions," Technovation, Elsevier, vol. 122(C).
    16. Tahi, Sofiane & Khlif, Wafa & Belghoul, Khaled & Casadella, Vanessa, 2022. "Public-private innovation networks in services: Revisiting PPPs with servitization," Technovation, Elsevier, vol. 118(C).
    17. Förster, Bernadette, 2015. "Technology foresight for sustainable production in the German automotive supplier industry," Technological Forecasting and Social Change, Elsevier, vol. 92(C), pages 237-248.
    18. Lafuente, Esteban & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2017. "Territorial servitization: Exploring the virtuous circle connecting knowledge-intensive services and new manufacturing businesses," International Journal of Production Economics, Elsevier, vol. 192(C), pages 19-28.
    19. Esteban Lafuente & Yancy Vaillant & Juan Carlos Leiva, 2018. "Sustainable and Traditional Product Innovation without Scale and Experience, but Only for KIBS!," Sustainability, MDPI, vol. 10(4), pages 1-18, April.
    20. 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.

    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:gam:jsusta:v:10:y:2018:i:5:p:1524-:d:145730. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.