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Image risks of servitization in collaborative service deliveries

Author

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  • Sanna Nenonen
  • Olli Ahvenniemi
  • Miia Martinsuo

Abstract

Although servitization is seen as a potential process for reputable goods manufacturers to expand their business, it also involves risks to company image. External partners, such as suppliers and third parties, have played an increasing role in manufacturing firms' service business, but their image effects are poorly understood. This paper discusses the image risks of servitization in manufacturing companies, particularly when they operate collaboratively with third parties. An embedded case study was conducted in two units of a case company in the engineering industry. The results revealed that a good company image plays a key role in customers' selection of service providers, but this image is strongly influenced by third-party performance during service delivery. As a key contribution, this study suggests that third-party image risks are strategic issues that can direct and guide the servitization process at the level of strategy, operations, and company identity.

Suggested Citation

  • Sanna Nenonen & Olli Ahvenniemi & Miia Martinsuo, 2014. "Image risks of servitization in collaborative service deliveries," The Service Industries Journal, Taylor & Francis Journals, vol. 34(16), pages 1307-1329, December.
    • Handle: RePEc:taf:servic:v:34:y:2014:i:16:p:1307-1329
    DOI: 10.1080/02642069.2014.942657
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    Cited by:

    1. Chih-An Lin & Homin Chen, 2018. "Deconstructing B2B, co-creation and service deployment in East Asia: evidence from Taiwan and PRC manufacturers," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(3), pages 351-370, May.
    2. Zhou, Dan & Yan, Tingting & Zhao, Lilong & Guo, Jingjing, 2020. "Performance implications of servitization: Does a Manufacturer's service supply network matter?," International Journal of Production Economics, Elsevier, vol. 219(C), pages 31-42.
    3. Sabrina Weigel & Karsten Hadwich, 2019. "Erfolgsfaktoren von Dienstleistungsnetzwerken im Kontext der Servicetransformation – Eine qualitative Analyse [Success Factors of Service Networks in the Context of Servitization – A Qualitative An," Schmalenbach Journal of Business Research, Springer, vol. 71(1), pages 1-43, March.
    4. Nullmeier, Fabian & Wynstra, Finn & van der Valk, Wendy, 2019. "Mitigating shirking: Contracting performance in buyer-initiated service triads," Other publications TiSEM cebcb590-5a85-4906-b8ec-1, Tilburg University, School of Economics and Management.
    5. 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.
    6. Raddats, Chris & Roper, Stuart & Ashman, Rachel, 2024. "The role of services in creating brand loyalty for B2B manufacturers," Journal of Business Research, Elsevier, vol. 174(C).

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