Servitization in manufacturing: role of antecedents and firm characteristics

Abstract

The process of creating value by adding services to product offerings, or servitization, is a mature theme in the literature, flourishing in recent years. Prior research investigated the impact of servitization measured by the share of services on the performance in terms of growth and stability. However, the impact of service antecedents on the share of revenue was neglected. This research intends to shed light on the impact of service portfolio antecedents on firm performance and to investigate the direct vs. indirect charges of services and the interplay of different firm characteristics and the service business model. We used dataset on 474 manufacturing firms from Croatia, Serbia and Slovenia. Results reveal antecedents as well as implications of direct and indirect charging of services in manufacturing firms. In addition, this study demonstrates the interplay of different firm characteristics and servitization.

The Role of Digital Servitization in Transition Economy: An SNA Approach

“…On the other side, the leaders in the application of servitization between developed countries during the years are the USA, Australia, and the UK [4]. Different from the transition economies ten years ago, today's transition economies strive to successfully implement servitization with the help of digital technologies [5,6]. Unfortunately, the level of the use of services in manufacturing firms from transition economies today (i.e.…”

“…Unfortunately, the level of the use of services in manufacturing firms from transition economies today (i.e. Republic of Serbia) is on the level of developed economies ten years ago [5,1]. Furthermore, the Republic of Serbia is in a similar situation as China in 2011, when China based its manufacture only on pure products [2,7].…”

“…The application of digital technologies enables manufacturing firms to offer new digital solutions for their customers [11,12]. Far from developed economies, research in developing countries has measured only the impact of digital servitization on firms' performance, while the role of traditional and digital services in manufacturing ecosystems remains neglected [5,6]. It remains unclear how small transition economies can achieve the level of servitization of developed countries.…”

The cumulative capability models: A contingency analysis

“…The assignment of equal importance was not allowed. The organizations that use strategic priorities of services [17] and innovative products [18] were not included in the analysis due to low frequencies. The scales of performance capabilities and internal organizational factors are provided in Annex 1.…”

A Precondition of Sustainability: Industry 4.0 Readiness

“…This manuscript used data from the European Manufacturing Survey (EMS) [35]. EMS is carried out in the 17 European countries, which is coordinated by the Fraunhofer ISI from Germany [36][37][38].…”