The Survival Benefits of Service Intensity for New Manufacturing Ventures: A Resource-Advantage Theory Perspective

Patel, Pankaj C.; Pearce, John A.; Guedes, Maria João

doi:10.1177/1094670519838616

Cited by 19 publications

(26 citation statements)

References 113 publications

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“…Future research should investigate new configurations by adding new elements. Among those elements, the roles of so-called moderators such as manufacturing and learning capabilities, firm size and age, industry type and conditions, and economic context have been barely touched upon so far, so they must be investigated more in depth (Sz asz et al, 2017;Ambroise et al, 2018a;Li et al, 2018;Valtakoski and Witell, 2018;Ayala et al, 2019;Patel et al, 2019). In addition, configurations including external service providers should be studied systematically.…”

Section: Limitations and Future Researchmentioning

confidence: 99%

Explaining the servitization paradox: a configurational theory and a performance measurement framework

Brax

Calabrese

Ghiron

et al. 2021

IJOPM

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PurposePrevious research reports mixed results regarding the performance impact of servitization in manufacturing firms. To resolve this, the purpose of this paper is to develop a conceptually consistent and comprehensive measurement framework for both dimensions, servitization and its performance effect, and apply in a configurational analysis to reexamine previous evidence, arriving at a configurational theory of the relationship between servitization and firm performance.Design/methodology/approachCombining systematic literature review (SLR) and inductive reasoning, the existing indicators for servitization and performance are identified and clustered into groups that adequately represent both dimensions. The dataset is reanalyzed against the resulting framework to identify the configurational patterns and to formulate the theoretical propositions.FindingsFinancial and nonfinancial indicators of servitization and its performance impact are organized into a comprehensive measurement framework grounded on existing research. The subsequent meta-analysis shows that the positive or negative impacts of servitization on performance depend on how firms implement servitization strategies and which performance aspects are examined.Research limitations/implicationsThe results explain when servitization can be successful and confirm the existence of the so-called servitization paradox. The meta-analysis identified patterns that explain the previous mixed results, shaping a configurational theory of servitization. Thus, the measurement framework is conceptually robust and has sufficient detail to capture servitization and its performance outcome as it feasibly distinguished between different organizational configurations.Originality/valueThe framework provides a comprehensive portfolio of indicators for both managers and scholars to measure servitization intensity and performance. This supports managers of servitizing firms in leading this organizational transformation while avoiding its organizational and financial paradoxes.

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Section: Limitations and Future Researchmentioning

confidence: 99%

Explaining the servitization paradox: a configurational theory and a performance measurement framework

Brax

Calabrese

Ghiron

et al. 2021

IJOPM

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“…As both employees and customers display SEBs in service interactions, intensive discussions and information exchanges occur (Fliess et al, 2014;Mustak et al, 2016;Sharma and Conduit, 2016). Under such circumstances, more personalized service experiences and individually fitted service outcomes are more likely to be achieved (Field et al, 2018;Patel et al, 2019), which, in turn, leads to customer delight, perceived quality, satisfaction and relationship longevity (Dong and Sivakumar, 2017;Gwinner et al, 2005;Kumar and Pansari, 2016;Wilder et al, 2014). However, the issue of SEB is yet to be explored.…”

Section: Discussionmentioning

confidence: 99%

“…During an interaction, when focal participants proactively contribute to the relational activities and engage in the interaction, more positive perceptions and interaction outcomes may result (Jang et al, 2004;Runhaar et al, 2013). Similarly, as service interactants take initiatives to shape service offerings and coordinate the delivery processes, they may jointly create services to better fit customer needs and establish more effective communication in achieving customization (Bernardes, 2010;Field et al, 2018;J€ a€ askel€ ainen and Heikkil€ a, 2019;Patel et al, 2019). In the meantime, service employees play an integral role in customer interactions, and their acts consequently shape customer perceptions, which, in turn, lead to various behavioral reactions of customers (Bitner, 1990;Keh et al, 2013;Mills and Morris, 1986;Zhao et al, 2018).…”

Section: Introductionmentioning

confidence: 99%

Engaging customers with employees in service encounters

Liang

Chu

Lin

2020

JOSM

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PurposeKeeping both employees and customers highly engaged has become a critical issue for service firms, especially for high-contact and highly customized services. Therefore, it is essential to engage employees and customers during service interactions for better service outcomes. However, past research on employee and customer engagement has primarily focused on brands and organizations. Little research has concentrated on service interactions as the objects of engagement. To fill this research gap, this study aims to clarify and define service engagement behaviors (SEBs), identify various employee and customer SEBs and develop a model to investigate the relationships between these behaviors.Design/methodology/approachA theoretical framework was developed based on social contagion theory and service-dominant (S-D) logic to explore the effects of employee SEBs on customer SEBs through customer perceptions of relational energy and interaction cohesion. Dyadic survey data collected from 293 customer-employee pairs in various high-contact and highly customized service industries were examined through structural equation modeling.FindingsResults show that employee SEBs (service role involvement, customer orientation behavior and customer empowerment behavior) positively influence relational energy and interaction cohesion, which in turn affect customer SEBs (service exploration behavior and service coordination behavior).Originality/valueThis study represents pioneering research to conceptualize SEBs. Different from the extant literature on engagement, SEBs capture the proactive and collaborative engagement behaviors of employees and customers in service interactions. Various employee and customer SEBs were identified and an empirical model was proposed and tested to investigate the effect of employee SEBs on customer SEBs through relational energy and interaction cohesion.

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“…The share of revenue generated through services (or "service ratio") (Fang et al, 2008) was used to measure servitization, based on the definitions used in past studies which measure servitization as the share of revenue generated through services (e.g. Lay et al, 2010;Patel et al, 2019). This is also in line with the mentioned definition of servitization by Baines et al (2017, p. 257).…”

Section: Methodsmentioning

confidence: 99%

“…Industrial goods manufacturing was chosen as a sector for this study for two reasons. First, industrial goods manufacturers increasingly generate revenue from services (Patel et al, 2019). Second, this industry depends heavily on international sales and faces challenges regarding product and service internationalization.…”

Section: Data Collection and Samplementioning

confidence: 99%

International resource configuration of product-related services in the digital age – An analysis of its antecedents

Jovanović

Morschett

2021

JOSM

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PurposeAlthough many manufacturers depend on international sales, and product-related services continue to increase in importance, little is known about how manufacturers should deliver their product-related services across borders. This paper examines the international configuration decision of industrial service offerings across borders by investigating the impact of different service characteristics and the servitization strategy on this decision. Additionally, the paper sheds light on how digitalization and administrative heritage impact this decision.Design/methodology/approach116 industrial goods manufacturers from Switzerland and Germany were surveyed.FindingsServitization leads companies to centralize their service resources in their home countries. However, most service characteristics do not impact decisions regarding centralization, except for knowledge intensity, which leads to more centralization of resources. This implies that the resource configuration does not depend on each service individually but on the overall service strategy. Furthermore, the digital readiness of the host country directly and positively impacts resource centralization. Notwithstanding other variables, larger companies tend to decentralize service resources more than smaller companies.Originality/valueThis paper is among the first to study the international configuration impact of servitization and of individual service characteristics, thereby adding important knowledge regarding the provision of product-related services in the international context. Additionally, different aspects of digitalization are included to analyze its impact on companies and host countries.

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The Survival Benefits of Service Intensity for New Manufacturing Ventures: A Resource-Advantage Theory Perspective

Cited by 19 publications

References 113 publications

Explaining the servitization paradox: a configurational theory and a performance measurement framework

Explaining the servitization paradox: a configurational theory and a performance measurement framework

Engaging customers with employees in service encounters

International resource configuration of product-related services in the digital age – An analysis of its antecedents

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