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Reversed servitization paths: a case analysis of two manufacturers

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  • 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
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    References listed on IDEAS

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    2. 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.
    3. 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).
    4. 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.
    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. 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).
    7. 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).
    8. 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.
    9. 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.
    10. 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.
    11. 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.
    12. 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.
    13. 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.
    14. 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.
    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. 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).

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