PurposePrevious research reports mixed results regarding the performance impact of servitization in manufacturing firms. To resolve this, the purpose of this paper is to develop a conceptually consistent and comprehensive measurement framework for both dimensions, servitization and its performance effect, and apply in a configurational analysis to reexamine previous evidence, arriving at a configurational theory of the relationship between servitization and firm performance.Design/methodology/approachCombining systematic literature review (SLR) and inductive reasoning, the existing indicators for servitization and performance are identified and clustered into groups that adequately represent both dimensions. The dataset is reanalyzed against the resulting framework to identify the configurational patterns and to formulate the theoretical propositions.FindingsFinancial and nonfinancial indicators of servitization and its performance impact are organized into a comprehensive measurement framework grounded on existing research. The subsequent meta-analysis shows that the positive or negative impacts of servitization on performance depend on how firms implement servitization strategies and which performance aspects are examined.Research limitations/implicationsThe results explain when servitization can be successful and confirm the existence of the so-called servitization paradox. The meta-analysis identified patterns that explain the previous mixed results, shaping a configurational theory of servitization. Thus, the measurement framework is conceptually robust and has sufficient detail to capture servitization and its performance outcome as it feasibly distinguished between different organizational configurations.Originality/valueThe framework provides a comprehensive portfolio of indicators for both managers and scholars to measure servitization intensity and performance. This supports managers of servitizing firms in leading this organizational transformation while avoiding its organizational and financial paradoxes.
This study reviews systematically the literature on the measurement of the firm-level degree of servitization. The results show that servitization measures are inconsistent across studies, even among those investigating similar research questions, and that a theoretical reference for their appropriate use is still missing. Focusing on these shortcomings, this study theorizes the firm-level servitization degree in three classes, i.e. "extension", "infusion", and "orientation". Hence, measures to operationalize each class are derived from the literature review and, subsequently, discussed with a panel of experts. In addition, servitization measurement is conceptualized other than as firm level degree, as measurement at regional, product, and individual employee levels. This study is the first to provide a systematic review on the topic and to develop a general conceptualization and operationalization of servitization measurement. Furthermore, this research is the first to employ an international standard classification of economic activities as a basis to identify objectively firms' service offerings. This research supports both scholars and practitioners because it brings consistency across studies and applications, thus fostering assessment and comparability of servitization experiences.
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