The impact of servitization and digitization on productivity and profitability of the firm: a systematic approach

Kharlamov, Alexander A.; Parry, Glenn

doi:10.1080/09537287.2020.1718793

Cited by 66 publications

(76 citation statements)

References 69 publications

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“…A solution business model, that has come to characterize knowledgeintensive service providers, is a relationship where the supplier is first presented with a problem that the buyer faces; the supplier then provides an integrated solution to that problem that is sold to the buyer. The value proposition of the solution business model is in large measure relational in nature and comes from the customization of solutions to the specificities of each buyer's needs (Kharlamov and Parry 2020). An important difficulty with solution business models is its scalability, where greater production volumes tend to lead to higher marginal costs.…”

Section: Servitization As a Means Of Offering Solutionsmentioning

confidence: 99%

Product lifespan: the missing link in servitization

Vendrell‐Herrero

Vaillant

Bustinza

et al. 2021

Production Planning & Control

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By drawing on a business model lens, this study proposes that the competitive performance of servitization is higher for manufacturing firms selling longlifespan products since they better develop the key elements required for transitioning towards integrated Business to Business (BtoB) solutions delivery.Additionally, the study argues that the moderation role of product lifespan is stronger in advanced stages of servitization as it reduces replacement and information costs. To test these hypotheses, this study merges a unique survey of Manufacturing Multinational Enterprises (MMNEs) and the Lifespan Database for Vehicles, Equipment and Structures (LiVES). Results show a positive moderating effect of product lifespan in the relationship between servitization and performance. Following this finding, across firms with high-intensity servitization, the firm that sells longest-lifespan products is predicted to capture most value from servitization. Overall, the present study suggests that implementation of recurrent services during an extended product lifecycle provides an opportunity for BtoB solutions delivery and product usage optimization. By including product lifespan in the equation, we improve understanding of why servitization is an excellent mechanism for managing longlasting industrial relationships, and explain why servitization boosts performance in some manufacturing industries but has a neutral effect on others.

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Section: Servitization As a Means Of Offering Solutionsmentioning

confidence: 99%

Product lifespan: the missing link in servitization

Vendrell‐Herrero

Vaillant

Bustinza

et al. 2021

Production Planning & Control

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“…Mounting evidence suggests that the manufacturing industry is being digitally transformed and that the final results of this transformation have a positive impact on performance (Abou-foul, Ruiz-Alba, and Soares 2020; Kharlamov and Parry 2020;Queiroz et al 2020;Lennon Olsen and Tomlin 2019). For traditional manufacturers, the final destinations of their Industry's 4.0 journey are the three business transformations described above.…”

Section: Discussionmentioning

confidence: 99%

“…In the last quadrant, manufacturers use Industry's 4.0 technologies to enhance their traditional operations as well as to bring about radical changes in their offering (Sjödin, Parida, Jovanovic, et al 2020). In this quadrant, manufacturers seek to exploit the digital synergy, i.e., to take advantage of the interaction between digitization in the production process and in the service offering (Kharlamov and Parry 2020;Sklyar et al 2019). As seen in the framework, some goals and barriers are shared among the four quadrants, i.e., they are relevant to Industry 4.0 (e.g.…”

Section: The Industry 40 Frameworkmentioning

confidence: 99%

Industry’s 4.0 transformation process: how to start, where to aim, what to be aware of

Calabrese

Dora

Ghiron

et al. 2020

Production Planning & Control

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Industry 4.0 has fused digitalisation with traditional industrial processes bridging the physical and virtual worlds and opening unimagined possibilities for 21st century business growth. Research is still evolving toward the development of frameworks linking Industry's 4.0 enabling technologies to specific goals and to their impact on the manufacturers' businesses. A systematic review of all peer-reviewed managerial research is performed to extract Industry's 4.0 enabling technologies, barriers and goals. A framework linking technologies, barriers, and goals is then developed together with a web application based on its contents. The use of the framework is demonstrated through its application to two specific empirical case studies. The review shows that there are 9 classes of Industry's 4.0 enabling technologies, whose different arrangements lead to the achievement of up to 15 business goals that can be thwarted by 21 barriers. The pursuit of these goals leads to three different destinations, i.e., three diverse digital transformations of the manufacturing firms. This paper provides a holistic framework that analyses the relationships among Industry's 4.0 enabling technologies, barriers and goals. It appeals to managers who can use its contents along with the web application to derive recommendations and suggestions tailored to their Industry's 4.0 journeys.

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“…More specifically, we look at the digital presence of the firm, as measured by the firm having its own website. Evidence shows that digital adoption is associated with productivity gains at the firm level (Kharlamov et al, 2020) and with firm resilience in a time of crisis (Wagner, 2021). The productivity gains linked to the use of innovation and technology may be weaker in the presence of skill shortages, which may relate to the complementarities between digital technologies and other forms of capital, including human capital (Gal et al, 2019).…”

Section: Control Variablesmentioning

confidence: 99%

Productivity and Firm Exit during the COVID-19 Crisis: Cross-Country Evidence

Muzi¹,

Jolevski²,

Ueda³

et al. 2021

Policy Research Working Papers

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

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The impact of servitization and digitization on productivity and profitability of the firm: a systematic approach

Cited by 66 publications

References 69 publications

Product lifespan: the missing link in servitization

Product lifespan: the missing link in servitization

Industry’s 4.0 transformation process: how to start, where to aim, what to be aware of

Productivity and Firm Exit during the COVID-19 Crisis: Cross-Country Evidence

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