Services growth options for B2B product-centric businesses

Raddats, Chris; Easingwood, Chris

doi:10.1016/j.indmarman.2010.03.002

Cited by 146 publications

(182 citation statements)

References 33 publications

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“…In general, the literature argues that service transition takes place in different dimensions, often formulating two-dimensional frameworks (Ferreira et al, 2013;Mathieu, 2001;Matthyssens & Vandenbempt, 2008;2010;Oliva & Kallenberg, 2003;Penttinen & Palmer, 2007;Raddats & Easingwood, 2010;Ulaga & Reinartz, 2011). We have identified three prevalent and interrelated transition dimensions: (1) from product towards process-oriented services (Antioco et al, 2008;Eggert et al, 2014;Mathieu, 2001;Oliva & Kallenberg, 2003;Raddats & Easingwood, 2010;Ulaga & Reinartz, 2011;Windahl & Lakemond, 2010); (2) from standardized towards customized services (Lightfoot & Gebauer, 2011;Matthyssens & Vandenbempt, 2010;Penttinen & Palmer, 2007); and (3) from transactional towards relational services (Oliva & Kallenberg 2003;Penttinen & Palmer, 2007).…”

Section: From Products To Solutions: the Underlying 'Service Transitimentioning

confidence: 99%

“…We have identified three prevalent and interrelated transition dimensions: (1) from product towards process-oriented services (Antioco et al, 2008;Eggert et al, 2014;Mathieu, 2001;Oliva & Kallenberg, 2003;Raddats & Easingwood, 2010;Ulaga & Reinartz, 2011;Windahl & Lakemond, 2010); (2) from standardized towards customized services (Lightfoot & Gebauer, 2011;Matthyssens & Vandenbempt, 2010;Penttinen & Palmer, 2007); and (3) from transactional towards relational services (Oliva & Kallenberg 2003;Penttinen & Palmer, 2007). Regardless of terminology and academic discipline, empirical studies as well as more conceptual papers, generally adopt the service transition as an underlying-explicit or implicit-assumption.…”

Section: From Products To Solutions: the Underlying 'Service Transitimentioning

confidence: 99%

“…The transition from a transactional to a relational nature of the customer-provider relationship encourages a gradual implementation of increasingly proactive, flexible, customized, and long-term relationships with customers and partners (Brax & Jonsson, 2008;Matthyssens & Vandenbempt, 2010). The transition from product to process-oriented offerings highlights the need to gradually move towards more complex offerings, add service components, and change the earning logic from discrete to continuous cash flows (Raddats & Easingwood, 2010;Ulaga & Reinartz, 2011;Storbacka et al, 2013). With a more complex and extensive offering, the coordination costs and operational risks typically increase (Nordin et al, 2011), but if the firm can manage these factors, there is an economic incentive to extend the total offering.…”

Section: From Products To Solutions: the Underlying 'Service Transitimentioning

confidence: 99%

“…Arguably, the transition assumption both favors and increases our understanding of the opportunities and challenges related to activities along one specific service growth trajectory. For instance, the extant literature uses the concept of categories of service offerings and service strategies more or less interchangeably (Lightfoot & Gebauer, 2011;Matthyssens & Vandenbempt ,2010;Penttinen & Palmer, 2007;Raddats & Easingwood, 2010), and frequently assumes that firms offer one category of services at a time (e.g., product-based services, availability solutions, performance solutions) and pursue a specific service strategy (i.e., role) (cf. Raddats & Kowalkowski, 2014).…”

Section: Implications For Theory and Practicementioning

confidence: 99%

“…Interestingly, both academia and practice emphasize the importance of and difficulties associated with transitioning from a so-called product business to a service business (Fang et al, 2008;Gebauer et al, 2005;Harmon and Laird, 2012;Kessler & Stephan, 2010;Matthyssens & Vandenbempt, 2010;Raddats & Easingwood, 2010;Ulaga & Loveland, 2014), product-service system business (Baines et al, 2009;Dahmani et al, 2014;Martinez et al, 2010), hybrid offering business (Ulaga & Reinartz, 2011), or solution business (Evanschitzky et al, 2011;Ferreira et al, 2013;Paiola et al, 2013). Essentially, the service transition concept, as established in Oliva and Kallenberg's (2003) path-defining study, assumes that firms undertake a unidirectional repositioning along a product-service continuum: from basic, product-oriented services towards more customized, process-oriented ones, ultimately leading to the provision of solutions.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

What service transition? Rethinking established assumptions about manufacturers' service-led growth strategies

Kowalkowski

Windahl

Kindström

et al. 2015

Industrial Marketing Management

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Research highlights• We challenge the established service transition assumption• We identify 3 service growth trajectories: becoming an availability provider; a performance provider; and an industrializer• Firms should generally downsize and standardize solutions, thus being able to offer them to a greater number of customers• Firms concurrently hold a number of system supplier roles rather than transferring from one role to another• We present a strong platform for further examination of theoretical and managerial implications of the study AbstractBoth academics and practitioners emphasize the importance for product firms of implementing service-led growth strategies. The service transition concept is well established, namely a unidirectional repositioning along a product-service continuum-from basic, product-oriented services towards more customized, process-oriented ones-ultimately leading to the provision of solutions. We challenge this service transition assumption and develop alternative ones regarding how product firms should pursue service-led growth.Using 'problematization methodology', and drawing on findings from thirteen system suppliers, we identify three service-led growth trajectories: (1) becoming an availability provider, which is the focus of most transition literature; (2) becoming a performance provider, which resembles project-based sales and implies an even greater differentiation of what customers are offered; and, (3) becoming an 'industrializer', which is about standardizing previously customized solutions to promote repeatability and scalability. Based on our critical inquiry, we develop two alternative assumptions: (a) firms need to constantly balance business expansion and standardization activities; and (b) manage the co-existence of different system supplier roles. Finally, we consider the implications for implementing service-led growth strategies of the alternative assumptions.

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