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The Impact of Servicization of Manufacturing Firms on Bullwhip Effects

Author

Listed:
  • Jiang Shenyang
  • Jiang Zhibin
  • Niu Yimeng
  • Wu Jing

Abstract

Service-oriented economies have triggered manufacturing firms to increasingly integrate services into their businesses. This section delves into the impact of servicization on two key bullwhip effects: the felt bullwhip, representing demand variability, and the intra-firm bullwhip, reflecting demand distortion. Manufacturers typically offer services complementing product sales, like maintenance and repair, and those replacing product sales, like machine hours. Employing text mining techniques, two service categories in 10-K reports are identified. Complementing services initially lead to a decrease in demand variability, while substituting services subsequently results in diminished demand distortion.

Suggested Citation

  • Jiang Shenyang & Jiang Zhibin & Niu Yimeng & Wu Jing, 2023. "The Impact of Servicization of Manufacturing Firms on Bullwhip Effects," Foundations and Trends(R) in Technology, Information and Operations Management, now publishers, vol. 16(3-4), pages 304-317, July.
    • Handle: RePEc:now:fnttom:0200000106-8
    DOI: 10.1561/0200000106-8
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    References listed on IDEAS

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    1. Dazhong Wu & Joe Teng & Sergey Ivanov & Julius Anyu, 2021. "Empirical Assessment of Bullwhip Effect in Supply Networks," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 14(2), pages 69-87, April.
    2. Vishal V. Agrawal & Ioannis Bellos, 2017. "The Potential of Servicizing as a Green Business Model," Management Science, INFORMS, vol. 63(5), pages 1545-1562, May.
    3. Hau L. Lee & V. Padmanabhan & Seungjin Whang, 1997. "Information Distortion in a Supply Chain: The Bullwhip Effect," Management Science, INFORMS, vol. 43(4), pages 546-558, April.
    4. Michael A. Cusumano & Steven J. Kahl & Fernando F. Suarez, 2015. "Services, industry evolution, and the competitive strategies of product firms," Strategic Management Journal, Wiley Blackwell, vol. 36(4), pages 559-575, April.
    5. Nitin Bakshi & Sang-Hyun Kim & Nicos Savva, 2015. "Signaling New Product Reliability with After-Sales Service Contracts," Management Science, INFORMS, vol. 61(8), pages 1812-1829, August.
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