Boosting servitization through digitization: Pathways and dynamic resource configurations for manufacturers

Coreynen, Wim; Matthyssens, Paul; Bockhaven, Wouter Van

doi:10.1016/j.indmarman.2016.04.012

Cited by 517 publications

(514 citation statements)

References 77 publications

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“…The efficiency of Class 2 SMEs is neither affected by the market nor by its number of employees. In this class, it is possible to identify those manufacturing SMEs that can increase their level of efficiency by developing IT capabilities as affordable practices in changing markets [73], and by developing digital assets to better serve costumers instead of following other strategies [40,74]. Specifically, firms in this class should develop their own CPSO or fully outsource CPSO, and they should train their employees to be able to implement it in a proper way (ITE).…”

Section: Resultsmentioning

confidence: 99%

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Capturing Firms’ Heterogeneity through Marketing and IT Capabilities in SMEs

Ramón-Jerónimo

Herrero

2017

Sustainability

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To achieve sustainability, firms capable of surviving economic recessions is of key relevance; the capabilities that firms need to face dynamic environments remain an open question. In this work, a new procedure is proposed to capture firms' heterogeneity with regard to the capabilities they possess in operating efficiently in dynamic environments. This approach enables the identification of the classes of firms that develop efficiency with a specific integration of resources. While the literature has most often measured firm capabilities using subjective measures, this study suggests the use of Data Envelopment Analysis to capture the ability to transform resources into outcomes and of Latent Class Regression to capture differences across firms that explain firms' heterogeneity in the way they perform. By combining these two techniques, this work presents a way to identify those firms that need to invest in and develop certain capabilities. This work analyses a large dataset of manufacturing Small Medium Enterprises (SMEs) extracted from the Business and Strategy survey provided by Fundación de la Sociedad Estatal de Participaciones Industriales( SEPI) in Spain. The dataset used enfolds 10,960 observations from 2048 firms during the period 1994-2011. The complete dataset has been employed to calculate manufacturing firms' efficiency. In a second step, data were cleaned to eliminate outliers, and to identify SMEs and observations with records of IT capabilities. As a result, 329 manufacturing SMEs were analysed to capture their heterogeneity. The results contribute to the current literature by explaining how manufacturing SMEs show a different need in their development of capabilities to be efficient and adapt to environmental changes. While approximately 20% of firms analysed really take advantage of recessions through their investment in R&D, the remaining 80% need to adjust their size or invest in IT capabilities to become competitive. The assumption shown in previous studies regarding the performance of SMEs to better confront recessions is discussed in this paper.

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Section: Resultsmentioning

confidence: 99%

“…Interestingly, investment in R&D decreases the efficiency of firms in Class 4, while positive effects are observed for the investment in IT, specifically when this is partially outsourced, that is, these firms can be even more efficient if they invest in IT by emphasising the relevance of IT capabilities to increase their efficiency [40,74]. …”

Section: Resultsmentioning

confidence: 99%

Capturing Firms’ Heterogeneity through Marketing and IT Capabilities in SMEs

Ramón-Jerónimo

Herrero

2017

Sustainability

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“…[19]. Research explores the alignment of these digitization capabilities with the pathways toward advanced services [21].…”

Section: Digitization For Advanced Servicesmentioning

confidence: 99%

“…Organization in BoP markets require digitization capabilities for identifying sanitation users and products, intelligence, connect, and analytical capabilities for optimizing sanitation marketing activities, reducing collection costs, and improving treatment processes, and orchestrating the role of back-end and front-end units [19][20][21][22].…”

Section: Theoretical Implicationsmentioning

confidence: 99%

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Digital Transformation as an Enabler for Advanced Services in the Sanitation Sector

Saul

Gebauer

2018

Sustainability

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People in Base of the Pyramid markets still face difficulties when it comes to sanitation. Container-based Sanitation (CBS) services represent a promising advanced sanitation service. Despite the observed outcomes of CBS services, organizations face obstacles when providing these services. To overcome these obstacles, digital transformations of these services are being carried out. We rely on multiple case studies to understand these digital transformations. Our findings highlight (1) the challenges these case organizations faced before engaging in the digital transformation, (2) their individual digital transformation pathways, and (3) a general framework for digital transformations in BoP markets. Keywords:Container-based Sanitation; advanced services; Internet of Things; Base of the Pyramid; WASH; sanitation MotivationThe 4 billion people in the world who subsist on a few dollars a day are often referred to as the Base of the Pyramid (BoP) [1]. Much of the BoP population lacks access to necessary services [2,3] such as water, sanitation, and energy. Considering our empirical context of sanitation, 2.4 billion people do not have access to a toilet that is connected to a sewage system or vaults that are regularly emptied and serviced [4], 892 million of which practice open defecation [5]. In addition, the excreta of 4.5 billion people is not safely treated or disposed of properly [5]. To better serve the BoP population, organizations need to move beyond offering basic sanitation products to the BoP population.A typical illustration of a basic sanitation product is the building of pit latrines, without concern for the wider excreta management system. While this approach can be designed to be very affordable, scalable, and even suitable for rural areas, it is not suitable for densely populated, informal, urban areas. In such conditions, basic sanitation offerings do not guarantee how and where excreta enters a sanitation system; how and for how long it is contained on site; how it is transported to a treatment facility; how it is treated; and how it is finally disposed of or re-utilized [6]. A system-perspective is critical for achieving the Sustainable Development Goals (SDGs) 6.2 "... access to adequate and equitable sanitation and hygiene for all and end open defecation" and 6.3 "... improve water quality by reducing pollution, eliminating dumping and minimizing release of hazardous chemicals and materials, halving the proportion of untreated wastewater and substantially increasing recycling and safe reuse globally" [7].Therefore, organizations should create advanced sanitation services. The idea of advanced services originates from the servitization discussion describing how product companies are increasingly transitioning from offering products to basic services, and from basic services to advanced services [8]. Advanced services are generally distinguished by their focus on outcomes and the tight links to the necessary capabilities for achieving these outcomes [8].Container-based Sanitation (CBS) ...

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2019

Innovation and Creativity in SMEs

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Boosting servitization through digitization: Pathways and dynamic resource configurations for manufacturers

Cited by 517 publications

References 77 publications

Capturing Firms’ Heterogeneity through Marketing and IT Capabilities in SMEs

Capturing Firms’ Heterogeneity through Marketing and IT Capabilities in SMEs

Digital Transformation as an Enabler for Advanced Services in the Sanitation Sector

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