Motivations for servitization: the impact of product complexity

Raddats, Chris; Baines, Tim; Burton, Jamie; Story, Vicky; Zolkiewski, Judy

doi:10.1108/ijopm-09-2014-0447

Cited by 114 publications

(119 citation statements)

References 42 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…According to the RBV, organisations are bundles of resources, with sustained competitive advantage coming from strategies based on those resources that are valuable, rare, inimitable, and non-substitutable and best suited to their markets (Barney, 1991). Despite acknowledging the role of resources in servitization research (e.g., Raddats et al, 2016), most studies focus on capabilities (Eloranta & Turunen, 2015); derived from the strategic configuration and active deployment of resources, rather than resources alone (Ulaga and Reinartz, 2011). Thus, our focus is capabilities.…”

Section: Resources and Capabilitiesmentioning

confidence: 99%

Interactively developed capabilities: evidence from dyadic servitization relationships

Raddats

Zolkiewski

Story

et al. 2017

IJOPM

Self Cite

112

147

View full text Add to dashboard Cite

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.

show abstract

Section: Resources and Capabilitiesmentioning

confidence: 99%

Interactively developed capabilities: evidence from dyadic servitization relationships

Raddats

Zolkiewski

Story

et al. 2017

IJOPM

Self Cite

112

147

View full text Add to dashboard Cite

show abstract

“…The particular case of service-led growth strategies is of special relevance for product firms with corporate clients seeking to obtain more integrated offerings (Cusumano et al, 2015) in such a way that they provide services to support traditional product supply, including fully fledged customizable solutions that address specific customer needs (Tuli, Kohli, & Bharadwaj, 2007). The rationales for undertaking service-led growth strategies in manufacturing sectors are subject to many variables, including product complexity (Raddats, Baines, Burton, Story, & Zolkiewski, 2016), customer proximity (Cusumano et al, 2015) and firm differentiation (Vandermerwe & Rada, 1989). These strategies represent a shift in the underlying business model of product firms in support of services (Visnjic-Kastalli & Van Looy, 2013) that is commonly referred in the literature as servitization and integrated solutions (Davies, 2004;Vandermerwe & Rada, 1989).…”

Section: New Manufacturing Strategies: Adding Services To Existing Prmentioning

confidence: 99%

Uncovering the role of cross-border strategic alliances and expertise decision centralization in enhancing product-service innovation in MMNEs

Vendrell‐Herrero

Gomes

Bustinza

et al. 2018

International Business Review

View full text Add to dashboard Cite

show abstract

“…For traditional manufacturers, the costs of social capital may exceed its benefits and hence social capital with suppliers cannot enhance operational performance. Servitised firms must build complex supply chains to fulfil every customer's special requirements (Smith, Maull, and Ng 2014;Raddats et al 2016). The development and delivery of value-added services or product-service systems are interactive and iterative processes that require suppliers' direct participation (Bastl et al 2012;Alghisi and Saccani 2015).…”

Section: The Direct Effect Of Social Capital On Operational Performancementioning

confidence: 99%

“…However, although researchers argue that servitisation can lock in customers, lock out competitors, reduce costs and risks, and improve profitability and competitiveness (Raddats et al 2016;Baines and Shi 2015), some firms are unable to profit from servitisation (Alghisi and Saccani 2015;Neely 2008).…”

Section: Introductionmentioning

confidence: 99%

Effects of social capital on operational performance: impacts of servitisation

Zhang

Guo

Zhao

2016

International Journal of Production Research

View full text Add to dashboard Cite

Studies on servitisation have largely overlooked the roles of social capital with suppliers and knowledge management. We propose a moderated mediation model to investigate the impacts of servitisation on the mechanisms through which social capital with suppliers improves operational performance. The hypotheses are empirically tested using structural equation modelling and data collected from 276 manufacturing firms in China. The results show that social capital improves operational performance both directly and indirectly through knowledge management, and the relationships are influenced by servitisation. In particular, social capital improves operational performance directly and indirectly through knowledge combination in servitised firms, whereas social capital only improves operational performance indirectly through knowledge acquisition in traditional manufacturers. The findings contribute to the literature by revealing that the effects of social capital with suppliers on operational performance are partially mediated by knowledge acquisition and knowledge combination and the mediation effects are moderated by servitisation, and by providing insights into how to design purchasing and production systems to profit from servitisation

show abstract

Motivations for servitization: the impact of product complexity

Cited by 114 publications

References 42 publications

Interactively developed capabilities: evidence from dyadic servitization relationships

Interactively developed capabilities: evidence from dyadic servitization relationships

Uncovering the role of cross-border strategic alliances and expertise decision centralization in enhancing product-service innovation in MMNEs

Effects of social capital on operational performance: impacts of servitisation

Contact Info

Product

Resources

About