Skip to main content

Implementing Servitization Strategies: Trajectories of Capability Development and Offering of Basic and Advanced Services

  • Chapter
  • First Online:
Book cover Practices and Tools for Servitization

Abstract

This chapter presents a framework to guide managers in the development of servitization strategies, namely, in what concerns capability development and the offering of different types of services (basic and advanced) over time. We propose that an effective servitization trajectory consists of (i) a balanced growth of basic and advanced services over time, using the former as a platform for selling the latter and (ii) building appropriate capabilities over time, recognizing that basic and advanced services require different types of capabilities. The framework was empirically validated with data from a survey of 931 manufacturers from different countries.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Baines, T., & Lightfoot, H. (2014). Servitization of the manufacturing firm: Exploring the operations practices and technologies that deliver advanced services. International Journal of Operations & Production Management, 34(1), 2–35.

    Article  Google Scholar 

  • Baines, T., Lightfoot, H., Benedettini, O., Whitney, D., & Kay, J. (2010). The adoption of servitization strategies by UK-based manufacturers. Journal of Engineering Manufacture, 224(5), 815–829.

    Article  Google Scholar 

  • da Silveira, G. J. C., & Sousa, R. (2017). Does servitization influence manufacturing strategy and performance? In 15th International Research Symposium on Service Excellence in Management (QUIS15), Porto, Portugal, June 12–15 (abstract).

    Google Scholar 

  • Eggert, A., Hogreve, J., Ulaga, W., & Muenkhoff, E. (2014). Revenue and profit implications of industrial service strategies. Journal of Service Research, 17(1), 23–39.

    Article  Google Scholar 

  • Eisenmann, T., Parker, G., & Van Alstyne, M. (2011). Platform envelopment. Strategic Management Journal, 32(12), 1270–1285.

    Article  Google Scholar 

  • Gebauer, H., Fleisch, E., & Friedli, T. (2005). Overcoming the service paradox in manufacturing companies. European Management Journal, 23(1), 14–26.

    Article  Google Scholar 

  • Kastalli, I., & van Looy, B. (2013). Servitization: Disentangling the impact of service business model innovation on manufacturing firm performance. Journal of Operations Management, 31(4), 169–180.

    Article  Google Scholar 

  • Kohtamaki, M., Partanen, J., Parida, V., & Wincent, J. (2013). Non-linear relationship between industrial service offering and sales growth: The moderating role of network capabilities. Industrial Marketing Management, 42(1), 1374–1385.

    Article  Google Scholar 

  • Kowalkowski, C., Windahl, C., Kindström, D., & Gebauer, H. (2015). What service transition? Rethinking established assumptions about manufacturers’ service-led growth strategies. Industrial Marketing Management, 45(2), 59–69.

    Article  Google Scholar 

  • Martinez, V., Bastl, M., Kingston, J., & Evans, S. (2010). Challenges in transforming manufacturing organisations into product-service providers. Journal of Manufacturing Technology Management, 21(4), 449–469.

    Article  Google Scholar 

  • Porter, M., & Heppelmann, J. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64–88.

    Google Scholar 

  • Smith, L., Maull, R., & Ng, I. (2014). Servitization and operations management: A service dominant-logic approach. International Journal of Operations & Production Management, 34(2), 242–269.

    Article  Google Scholar 

  • Sousa, R., & da Silveira, G. J. C. (2017). Capability antecedents and performance outcomes of servitization: Differences between basic and advanced services. International Journal of Operations & Production Management, 37(4), 1–52.

    Article  Google Scholar 

  • Ulaga, W., & Reinartz, W. (2011). Hybrid offerings: How manufacturing firms combine goods and services successfully. Journal of Marketing, 75(6), 5–23.

    Article  Google Scholar 

  • Visnjic, I., Wiengarten, F., & Neely, A. (2016). Only the brave: Product innovation, service business model innovation, and their impact on performance. Journal of Product Innovation Management, 33(1), 36–52.

    Article  Google Scholar 

  • Wünderlich, N., Heinonen, K., Ostrom, A., Patrício, L., Sousa, R., Voss, C., & Lemmink, J. (2015). “Futurizing” smart service: Implications for service researchers and managers. Journal of Services Marketing, 29(6/7), 442–447.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Rui Sousa .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2018 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer International Publishing AG, part of Springer Nature

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Sousa, R., da Silveira, G.J.C. (2018). Implementing Servitization Strategies: Trajectories of Capability Development and Offering of Basic and Advanced Services. In: Kohtamäki, M., Baines, T., Rabetino, R., Bigdeli, A. (eds) Practices and Tools for Servitization. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-76517-4_11

Download citation

Publish with us

Policies and ethics