IDEAS home Printed from https://ideas.repec.org/p/rif/report/14.html
   My bibliography  Save this paper

Servitization as a Productive Strategy of a Firm – Evidence from the Forest-Based Industries

Author

Listed:
  • Viitamo, Esa

Abstract

A central aspect of the industrial evolution in the advanced economies is the phenomenon called servitization. In general, the term servitization or product-service transition is used to highlight the change, where the tangible offering of a manufacturing firm is augmented with intangible services. In this paper, servitization is addressed broadly as a strategic reorientation by a manufacturing firm which entails adjustments in the firm business model as well. A useful framework to address the product-service transition is the socio-economic view of service productivity. On that basis, the paper shows how the productive strategy of the servitizing firm is linked with the business model that builds on service-dominant (S-D) logic. The resources and capabilities of the firm are central drivers in servitization. Via the empirical case study of the servitization strategies in the Finnish forest cluster, the paper extends the scope of analysis in the servitization research from the installed base -industries to the process industries. In a wider context, this paper contributes to the research collaboration between Aalto University (BIT) and Research Institute of the Finnish Economy, ETLA in the field of service research.

Suggested Citation

  • Viitamo, Esa, 2013. "Servitization as a Productive Strategy of a Firm – Evidence from the Forest-Based Industries," ETLA Reports 14, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:14
    as

    Download full text from publisher

    File URL: http://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-14.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    2. David G. Hoopes & Tammy L. Madsen & Gordon Walker, 2003. "Guest editors' introduction to the special issue: why is there a resource‐based view? Toward a theory of competitive heterogeneity," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 889-902, October.
    3. Dosi, Giovanni & Teece, David J. & Chytry, Josef (ed.), 1998. "Technology, Organization, and Competitiveness: Perspectives on Industrial and Corporate Change," OUP Catalogue, Oxford University Press, number 9780198290964.
    4. repec:bla:revinw:v:46:y:2000:i:3:p:369-87 is not listed on IDEAS
    5. Pajarinen, Mika & Rouvinen, Petri & Ylä-Anttila, Pekka, 2013. "Services: A New Source of Value," ETLA Brief 11, The Research Institute of the Finnish Economy.
    6. Eugene W. Anderson & Claes Fornell & Roland T. Rust, 1997. "Customer Satisfaction, Productivity, and Profitability: Differences Between Goods and Services," Marketing Science, INFORMS, vol. 16(2), pages 129-145.
    7. David J. Teece, 2003. "Towards an Economic Theory of the Multiproduct Firm," World Scientific Book Chapters, in: Essays In Technology Management And Policy Selected Papers of David J Teece, chapter 15, pages 419-446, World Scientific Publishing Co. Pte. Ltd..
    8. Faridah Djellal & Faïz Gallouj, 2008. "Measuring and Improving Productivity in Services," Books, Edward Elgar Publishing, number 12734.
    9. Parrinello, Sergio, 2004. "The service economy revisited," Structural Change and Economic Dynamics, Elsevier, vol. 15(4), pages 381-400, December.
    10. Bernolak, Imre, 1997. "Effective measurement and successful elements of company productivity: The basis of competitiveness and world prosperity," International Journal of Production Economics, Elsevier, vol. 52(1-2), pages 203-213, October.
    11. repec:bla:revinw:v:23:y:1977:i:4:p:315-38 is not listed on IDEAS
    12. Valérie Mathieu, 2001. "Product services: from a service supporting the product to a service supporting the client," Post-Print hal-01796270, HAL.
    13. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    14. Teece, David J., 1980. "Economies of scope and the scope of the enterprise," Journal of Economic Behavior & Organization, Elsevier, vol. 1(3), pages 223-247, September.
    15. Faridah Djellal & Faïz Gallouj, 2008. "Measuring and Improving Productivity in Services: Issues, Strategies and Challenges," Post-Print hal-01111758, HAL.
    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. Pelli, Päivi, 2018. "Services and industrial development: analysis of industrial policy, trends and issues for the forest-based sector," Journal of Forest Economics, Elsevier, vol. 31(C), pages 17-26.

    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. Viitamo, Esa, 2014. "Service productivity, technology and organization - Converting theory to praxis," ETLA Working Papers 26, The Research Institute of the Finnish Economy.
    2. Kim, Jongwook & Mahoney, Joseph T., 2008. "A Strategic Theory of the Firm as a Nexus of Incomplete Contracts: A Property Rights Approach," Working Papers 08-0108, University of Illinois at Urbana-Champaign, College of Business.
    3. Nicolas Petit & David J Teece, 2021. "Innovating Big Tech firms and competition policy: favoring dynamic over static competition [Patterns of industrial innovation]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(5), pages 1168-1198.
    4. Iman Seoudi & Matthias Huehn & Bo Carlsson, 2008. "Penrose Revisited: A Re-Appraisal of the Resource Perspective," Working Papers 14, The German University in Cairo, Faculty of Management Technology.
    5. David J. Teece, 2008. "Firm organization, industrial structure, and technological innovation," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 11, pages 265-296, World Scientific Publishing Co. Pte. Ltd..
    6. Langlois, Richard N., 2013. "Business groups and the natural state," Journal of Economic Behavior & Organization, Elsevier, vol. 88(C), pages 14-26.
    7. Pätäri, Satu & Kyläheiko, Kalevi & Sandström, Jaana, 2011. "Opening up new strategic options in the pulp and paper industry: Case biorefineries," Forest Policy and Economics, Elsevier, vol. 13(6), pages 456-464, July.
    8. Villasalero, Manuel, 2017. "A resource-based analysis of realized knowledge relatedness in diversified firms," Journal of Business Research, Elsevier, vol. 71(C), pages 114-124.
    9. Seri, Paolo & Zanfei, Antonello, 2013. "The co-evolution of ICT, skills and organization in public administrations: Evidence from new European country-level data," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 160-176.
    10. Vikas A. Aggarwal & Brian Wu, 2015. "Organizational Constraints to Adaptation: Intrafirm Asymmetry in the Locus of Coordination," Organization Science, INFORMS, vol. 26(1), pages 218-238, February.
    11. Guo Bai & S. Ramakrishna Velamuri, 2021. "Contextualizing the Sharing Economy," Journal of Management Studies, Wiley Blackwell, vol. 58(4), pages 977-1001, June.
    12. Behrens, Vanessa & Berger, Marius & Hud, Martin & Hünermund, Paul & Iferd, Younes & Peters, Bettina & Rammer, Christian & Schubert, Torben, 2017. "Innovation activities of firms in Germany - Results of the German CIS 2012 and 2014: Background report on the surveys of the Mannheim Innovation Panel Conducted in the Years 2013 to 2016," ZEW Dokumentationen 17-04, ZEW - Leibniz Centre for European Economic Research.
    13. Krammer, Sorin M.S., 2016. "The role of diversification profiles and dyadic characteristics in the formation of technological alliances: Differences between exploitation and exploration in a low-tech industry," Research Policy, Elsevier, vol. 45(2), pages 517-532.
    14. Abdulrahman Al–Aali & David J. Teece, 2014. "International Entrepreneurship and the Theory of the (Long–Lived) International Firm: A Capabilities Perspective," Entrepreneurship Theory and Practice, , vol. 38(1), pages 95-116, January.
    15. Hallberg, Niklas L. & Brattström, Anna, 2019. "Concealing or revealing? Alternative paths to profiting from innovation," European Management Journal, Elsevier, vol. 37(2), pages 165-174.
    16. Wang, Heli & Chen, Wei-Ru, 2010. "Is firm-specific innovation associated with greater value appropriation? The roles of environmental dynamism and technological diversity," Research Policy, Elsevier, vol. 39(1), pages 141-154, February.
    17. Christos N. Pitelis & David J. Teece, 2010. "Cross-border market co-creation, dynamic capabilities and the entrepreneurial theory of the multinational enterprise," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 19(4), pages 1247-1270, August.
    18. Chen, Yi-Min, 2010. "The continuing debate on firm performance: A multilevel approach to the IT sectors of Taiwan and South Korea," Journal of Business Research, Elsevier, vol. 63(5), pages 471-478, May.
    19. Cirera, Xavier & Marin, Anabel & Markwald, Ricardo, 2015. "Explaining export diversification through firm innovation decisions: The case of Brazil," Research Policy, Elsevier, vol. 44(10), pages 1962-1973.
    20. Kyläheiko, Kalevi & Jantunen, Ari & Puumalainen, Kaisu & Saarenketo, Sami & Tuppura, Anni, 2011. "Innovation and internationalization as growth strategies: The role of technological capabilities and appropriability," International Business Review, Elsevier, vol. 20(5), pages 508-520, October.

    More about this item

    Keywords

    Servitization; Strategy; Productivity; Service-dominant logic; Forest-based industries;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:rif:report:14. 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: Kaija Hyvönen-Rajecki (email available below). General contact details of provider: https://edirc.repec.org/data/etlaafi.html .

    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.