IDEAS home Printed from https://ideas.repec.org/a/spr/svcbiz/v7y2013i4p513-537.html
   My bibliography  Save this article

Reversed servitization paths: a case analysis of two manufacturers

Author

Listed:
  • Max Finne
  • Saara Brax
  • Jan Holmström

Abstract

The literature on service business in manufacturing companies posits that manufacturers “servitize” by increasing the proportion of services offered. This study presents two paths that are contrary to such forward-unidirectional servitization, indicating “reversed servitization.” In the first case, a capital goods manufacturer lost visibility to its installed base due to evolving product technology. We use the case of photocopier manufacturer Xerox to support our findings; a regulation change forced Xerox to move from a service-based toward a product-based business model. We thus propose that influencing environmental factors need to be researched and that the literature of organizational ecology may serve as a complementary perspective. Copyright Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Max Finne & Saara Brax & Jan Holmström, 2013. "Reversed servitization paths: a case analysis of two manufacturers," Service Business, Springer;Pan-Pacific Business Association, vol. 7(4), pages 513-537, December.
    • Handle: RePEc:spr:svcbiz:v:7:y:2013:i:4:p:513-537
    DOI: 10.1007/s11628-013-0182-1
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11628-013-0182-1
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11628-013-0182-1?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. 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. Youngjung Geum & Sungjoo Lee & Daekook Kang & Yongtae Park, 2011. "The customisation framework for roadmapping product-service integration," Service Business, Springer;Pan-Pacific Business Association, vol. 5(3), pages 213-236, September.
    3. Gary Akehurst, 2008. "What do we really know about services?," Service Business, Springer;Pan-Pacific Business Association, vol. 2(1), pages 1-15, March.
    4. 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.
    5. M. Antioco & R.K. Moenaert & R.A. Feinberg & M.G.M. Wetzels, 2008. "Integrating service and design : the influences of organizational and communication factors on relative product and service characteristics," Post-Print hal-00323008, HAL.
    6. Henry Chesbrough & Richard S. Rosenbloom, 2002. "The role of the business model in capturing value from innovation: evidence from Xerox Corporation's technology spin-off companies," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 11(3), pages 529-555, June.
    7. Kowalkowski, Christian & Kindström, Daniel & Alejandro, Thomas Brashear & Brege, Staffan & Biggemann, Sergio, 2012. "Service infusion as agile incrementalism in action," Journal of Business Research, Elsevier, vol. 65(6), pages 765-772.
    8. Wolfgang Ulaga & Werner Reinartz, 2011. "Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully," Post-Print hal-00642039, HAL.
    9. 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.
    10. Wolfgang Ulaga & Andreas Eggert & Jens Hogreve & Eva Muenkhoff, 2011. "Industrial services, product innovations, and firm profitability: A multiple-group latent growth curve analysis," Post-Print hal-00632809, HAL.
    11. Ton Wiele, 2007. "Longitudinal measurement in organisational transformation: a case of a Dutch Flex Company," Service Business, Springer;Pan-Pacific Business Association, vol. 1(1), pages 25-40, March.
    12. Richard Reed & Susan Storrud-Barnes, 2009. "Systematic performance differences across the manufacturing-service continuum," Service Business, Springer;Pan-Pacific Business Association, vol. 3(4), pages 319-339, December.
    13. Klepper, Steven & Simons, Kenneth L, 1997. "Technological Extinctions of Industrial Firms: An Inquiry into Their Nature and Causes," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 6(2), pages 379-460, March.
    14. Michael Antioco & Rudy Moenaert & Richard Feinberg & Martin Wetzels, 2008. "Integrating service and design : the influences of organizational and communication factors on relative product and service characteristics," Post-Print hal-02312524, HAL.
    15. Teemu Laine & Jari Paranko & Petri Suomala, 2010. "Downstream shift at a machinery manufacturer: the case of the remote technologies," Management Research Review, Emerald Group Publishing Limited, vol. 33(10), pages 980-993, September.
    16. Dubois, Anna & Gadde, Lars-Erik, 2002. "Systematic combining: an abductive approach to case research," Journal of Business Research, Elsevier, vol. 55(7), pages 553-560, July.
    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. Münch, Christopher & Marx, Emanuel & Benz, Lukas & Hartmann, Evi & Matzner, Martin, 2022. "Capabilities of digital servitization: Evidence from the socio-technical systems theory," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    2. 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).
    3. 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.
    4. Ray Qing Cao & Dara G. Schniederjans & Vicky Ching Gu, 2021. "Stakeholder sentiment in service supply chains: big data meets agenda-setting theory," Service Business, Springer;Pan-Pacific Business Association, vol. 15(1), pages 151-175, March.
    5. Sang M. Lee & Jin Sung Rha, 2018. "A network text analysis of published papers in service business, 2007–2017: research trends in the service sector," Service Business, Springer;Pan-Pacific Business Association, vol. 12(4), pages 809-831, December.
    6. Palo, Teea & Åkesson, Maria & Löfberg, Nina, 2019. "Servitization as business model contestation: A practice approach," Journal of Business Research, Elsevier, vol. 104(C), pages 486-496.
    7. Saad Zighan & Moheeb Abualqumboz, 2022. "Dual focus: service-product orientation to manage the change paradox following servitization strategy," Service Business, Springer;Pan-Pacific Business Association, vol. 16(1), pages 29-55, March.
    8. Baines, Tim & Ziaee Bigdeli, Ali & Sousa, Rui & Schroeder, Andreas, 2020. "Framing the servitization transformation process: A model to understand and facilitate the servitization journey," International Journal of Production Economics, Elsevier, vol. 221(C).
    9. 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.
    10. Lütjen, Heiner & Tietze, Frank & Schultz, Carsten, 2017. "Service transitions of product-centric firms: An explorative study of service transition stages and barriers in Germany's energy market," International Journal of Production Economics, Elsevier, vol. 192(C), pages 106-119.
    11. Karatzas, Antonios & Daskalakis, George & Bastl, Marko & Johnson, Mark, 2022. "Risky business? Shareholder value effects of service provision," International Journal of Production Economics, Elsevier, vol. 244(C).
    12. Lenka, Sambit & Parida, Vinit & Sjödin, David Rönnberg & Wincent, Joakim, 2018. "Exploring the microfoundations of servitization: How individual actions overcome organizational resistance," Journal of Business Research, Elsevier, vol. 88(C), pages 328-336.
    13. 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.
    14. Josip Marić & Marco Opazo-Basáez, 2019. "Green Servitization for Flexible and Sustainable Supply Chain Operations: A Review of Reverse Logistics Services in Manufacturing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 65-80, December.
    15. Turunen, Taija & Finne, Max, 2014. "The organisational environment’s impact on the servitization of manufacturers," European Management Journal, Elsevier, vol. 32(4), pages 603-615.
    16. Ornella Benedettini & Andy Neely, 2018. "Investigating a revised service transition concept," Service Business, Springer;Pan-Pacific Business Association, vol. 12(4), pages 701-730, December.

    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. 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.
    2. Ornella Benedettini & Andy Neely, 2018. "Investigating a revised service transition concept," Service Business, Springer;Pan-Pacific Business Association, vol. 12(4), pages 701-730, December.
    3. Rafael Cáceres & Joaquin Guzmán, 2015. "Seeking an innovation structure common to both manufacturing and services," Service Business, Springer;Pan-Pacific Business Association, vol. 9(3), pages 361-379, September.
    4. Ornella Benedettini, 2022. "Structuring Servitization-Related Capabilities: A Data-Driven Analysis," Sustainability, MDPI, vol. 14(9), pages 1-20, May.
    5. Huikkola, Tuomas & Kohtamäki, Marko & Rabetino, Rodrigo & Makkonen, Hannu & Holtkamp, Philipp, 2022. "Overcoming the challenges of smart solution development: Co-alignment of processes, routines, and practices to manage product, service, and software integration," Technovation, Elsevier, vol. 118(C).
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Rabetino, Rodrigo & Kohtamäki, Marko & Gebauer, Heiko, 2017. "Strategy map of servitization," International Journal of Production Economics, Elsevier, vol. 192(C), pages 144-156.
    11. Holmlund, Maria & Kowalkowski, Christian & Biggemann, Sergio, 2016. "Organizational behavior in innovation, marketing, and purchasing in business service contexts—An agenda for academic inquiry," Journal of Business Research, Elsevier, vol. 69(7), pages 2457-2462.
    12. 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.
    13. Turunen, Taija & Finne, Max, 2014. "The organisational environment’s impact on the servitization of manufacturers," European Management Journal, Elsevier, vol. 32(4), pages 603-615.
    14. Baines, Tim & Ziaee Bigdeli, Ali & Sousa, Rui & Schroeder, Andreas, 2020. "Framing the servitization transformation process: A model to understand and facilitate the servitization journey," International Journal of Production Economics, Elsevier, vol. 221(C).
    15. 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).
    16. 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.
    17. Dannenbaum, Judith & Edinger-Schons, Laura Marie & Rese, Mario & Plötner, Olaf & Wieseke, Jan, 2020. "What Does it Take to Successfully Implement a Hybrid Offering Strategy? A Contingency Perspective," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 4(2-3), pages 100-120.
    18. 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.
    19. Ashkan Faramarzi & Stefan Worm & Wolfgang Ulaga, 2024. "Service strategy’s effect on firm performance: A meta-analysis of the servitization literature," Journal of the Academy of Marketing Science, Springer, vol. 52(4), pages 1018-1044, July.
    20. 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.

    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:spr:svcbiz:v:7:y:2013:i:4:p:513-537. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.