The relevance of service in European manufacturing industries

Abstract

Purpose - Case study findings increasingly indicate that the implementation of service-based business concepts is becoming a global business trend. The purpose of this paper is to analyze a broad European survey to understand the extent to which service infusion has already deeply affected manufacturing industries and the factors influencing service infusion. Design/methodology/approach - Data from 3,376 companies participating in the European Manufacturing Survey were included in an evaluation of service offerings and service sales. Multivariate data analyzes were used to develop statistically relevant conclusions regarding service infusion and the factors influencing it. Findings - Whereas, the vast majority of companies surveyed offer services, the turnover generated by services was still low, and the adopted service strategies did not seem fully developed. The most significant determinant of service sales was the breadth of services offered. Other relevant explanatory factors included the characteristics of the type of products sold, whereas the position in the supply chain did not seem to affect service infusion. Research limitations/implications - Using large-scale survey data, this analysis provides a representative picture of service infusion in manufacturing industries and related causal relationships. Further qualitative research should develop interpretations of the relationships found in our quantitative analysis; as such, subsequent quantitative analyzes are necessary. Originality/value - As most previous studies on service infusion are based on case study reports, the value of this paper comes from its use of a broad empirical database. Thus, the paper supports, confirms, and generalizes previous qualitative findings

A Reconceptualization of Manufacturers' Service Strategies

“…Some manufacturers can be described as Services Doubters which are not undertaking service infusion to any great extent, supporting Lay et al (2010). This study suggests that some of these companies have set up independent service business units, although the implementation of the strategy might not have been successful (Gebauer, Fleisch, and Friedli 2005;Homburg, Fassnacht, and Guenther 2003), hence the lack of focus on any category of service offerings.…”

“…As more research is conducted within this field it is becoming apparent that manufacturers seek competitive advantage through service infusion approaches which are based on diverse service strategies and offerings. Although some manufacturers' service offerings are under-developed (Lay et al 2010) others have developed after-sales service offerings to enhance the reliability of their own products; for example, spares and repair, technical support, training (Gebauer 2007;Lele 1997). Other manufacturers' service infusion approaches are less focused on product reliability and more focused on revenue growth; for example, outsourcing services, whereby the risk and responsibility for customers' operational processes is assumed by the manufacturer (Gebauer 2008;Ulaga and Reinartz 2011).…”

Service orientation: changing in Tunisian industrial firms

“…It is scalable, innovative or poorly differentiated, the product directly generates demand growth complementary services (Furrer, 1997). Lay et al (2010) were able to show that the extent of the service offering in the industrial firms depends on the type of product offered. In other words, it is the nature of the products that drive customers to demand more services from their suppliers.…”

“…The only product is no longer seen as a central element of the offer of an industrial firm. Gradually, it became a determinant of service orientation (Lay et al, 2010).…”

Integrated Product Service Engineering - Factors Influencing Environmental Performance

“…For instance, (Lay, Copani et al 2010) argue that the innovativeness of products has positive influences on the integration of product and service. Theoretical investigation has also begun: For instance, property rights (Furubotn and Pejovich 1972) have gained attention as a key for PSS to be meaningful (Hockerts 2008;Dill, Birkhofer et al 2011).…”