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Towards solution based thinking: characteristics of servitization at Hungarian manufacturing companies

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  • Demeter, Krisztina
  • Szász, Levente

Abstract

The main purpose of the article is to describe the servitization process of Hungarian manufacturing companies based on data of the Hungarian Competitiveness research. Servitization aims at supplying a bundle of products and services that offers complete solutions for customers. In this paper we analyze to what extent characteristics of ser-vitization in developed countries are also applicable in a developing macro-environment, i.e. in Hungary. Results of our analysis show that, generally, Hungarian manufacturing companies do not place strategic emphasis on services. Nevertheless, our sample contains a number of manufacturing companies that have taken actions to servitize both on strategic and operational level. However, in case of these companies financial benefits attributable to higher levels of servitization do not yet seem to materialize.

Suggested Citation

  • Demeter, Krisztina & Szász, Levente, 2013. "Towards solution based thinking: characteristics of servitization at Hungarian manufacturing companies," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(3), pages 309-335.
    • Handle: RePEc:nms:joeems:doi_10.1688/1862-0019_jeems_2013_03_demeter
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    References listed on IDEAS

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    1. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    2. Valérie Mathieu, 2001. "Product services: from a service supporting the product to a service supporting the client," Post-Print hal-01796270, HAL.
    3. Johnson, Mark & Mena, Carlos, 2008. "Supply chain management for servitised products: A multi-industry case study," International Journal of Production Economics, Elsevier, vol. 114(1), pages 27-39, July.
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    5. 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.
    6. Leong, G. K. & Snyder, D. L. & Ward, P. T., 1990. "Research in the process and content of manufacturing strategy," Omega, Elsevier, vol. 18(2), pages 109-122.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    servitization; integrated solutions; operations strategy; financial performance;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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