No abstract

Servitization involves manufacturers developing service offerings to grow revenue and profit. Advanced services, in particular, can facilitate a more service-focused organization and impact customers' business processes significantly. However, approaches to servitization are often discussed solely from the manufacturer's perspective; overlooking the role of other network actors. Adopting a multi-actor perspective, this study investigates manufacturer, intermediary and customer perspectives to identify complementary and competing capabilities within a manufacturer's downstream network, required for advanced services. Interviews were conducted with 24 senior executives in 19 UK-based manufacturers, intermediaries and customers across multiple sectors. The study identified six key business activities, within which advanced services capabilities were grouped. The unique and critical capabilities for advanced services for each actor were identified as follows: manufacturers; the need to balance product and service innovation, developing customer-focused through-life service methodologies and having distinct, yet synergistic product and service cultures; intermediaries, the coordination and integration of third party products/services; customers, co-creating innovation and having processes supporting service outsourcing. The study is unique in highlighting the distinct roles of different actors in the provision of advanced services and shows that they can only be developed and delivered by the combination of complex interconnected capabilities found within a network.

Purpose-The paper challenges the focal firm perspective of much resource/capability research, identifying how a dyadic perspective facilitates identification of capabilities required for servitization. Design/methodology/approach-Exploratory study consisting of seven dyadic relationships in five sectors. Findings-An additional dimension of capabilities should be recognised; whether they are developed independently or interactively (with another actor). The following examples of interactively developed capabilities are identified: knowledge development, where partners interactively communicate to understand capabilities; service enablement, manufacturers work with suppliers and customers to support delivery of new services; service development, partners interact to optimise performance of existing services; risk management, customers work with manufacturers to manage risks of product acquisition/operation. Six propositions were developed to articulate these findings. Research implications/limitations-Interactively developed capabilities are created when two or more actors interact to create value. Interactively developed capabilities do not just reside within one firm and, therefore, cannot be a source of competitive advantage for one firm alone. Many of the capabilities required for servitization are interactive, yet have received little research attention. The study does not provide an exhaustive list of interactively developed capabilities, but demonstrates their existence in manufacturer/supplier and manufacturer/customer dyads. Practical implications-Manufacturers need to understand how to develop capabilities interactively to create competitive advantage and value and identify other actors with whom these capabilities can be developed. Originality/value-Previous research has focused on relational capabilities within a focal firm. This study extends existing theories to include interactively developed capabilities. The paper proposes that interactivity is a key dimension of actors' complementary capabilities.

Complexity surrounding the holistic nature of customer experience has made measuring customer perceptions of interactive service experiences challenging. At the same time, advances in technology and changes in methods for collecting explicit customer feedback are generating increasing volumes of unstructured textual data, making it difficult for managers to analyze and interpret this information. Consequently, text mining, a method enabling automatic extraction of information from textual data, is gaining in popularity. However, this method has performed below expectations in terms of depth of analysis of customer experience feedback and accuracy. In this study, we advance linguistics-based text mining modeling to inform the process of developing an improved framework. The proposed framework incorporates important elements of customer experience, service methodologies, and theories such as cocreation processes, interactions, and context. This more holistic approach for analyzing feedback facilitates a deeper analysis of customer feedback experiences, by encompassing three value creation elements: activities, resources, and context (ARC). Empirical results show that the ARC framework facilitates the development of a text mining model for analysis of customer textual feedback that enables companies to assess the impact of interactive service processes on customer experiences. The proposed text mining model shows high accuracy levels and provides flexibility through training. As such, it can evolve to account for changing contexts over time and be deployed across different (service) business domains; we term it an “open learning” model. The ability to timely assess customer experience feedback represents a prerequisite for successful cocreation processes in a service environment.

forthcoming). "Characterizing customer experience management in business markets", Journal of Business Research.