Internalisation or externalisation?: Examining organisational arrangements for industrial services
2011 (English)In: Managing Service Quality, ISSN 0960-4529, Vol. 21, no 4, 373-391 p.Article in journal (Refereed) Published
Purpose – Manufacturing firms primarily organise service provision internally, externally or through a hybrid arrangement. This paper aims to analyse how firm-, offering-, and market-specific factors influence the way in which a firm organise its service provision. In addition, the paper analyses the specific challenges that each organisational arrangement presents for a firm.
Design/Methodology/Approach – The study employed a qualitative, multiple-case research design that involved seven manufacturing firms with different organisational arrangements for service provision.
Findings – Contrary to certain explicit assumptions, few firms organise for service provision solely through an in-house organisation. Analysis of firms in a wide variety of industries has shown that the organisational arrangements (internal, external or hybrid configuration) are contingent on factors such as market strategy, customer relationships, product-service linkages, internal competences and market channel characteristics.
Research Limitations/Implications – This article is an initial attempt to understand the strategic choices that firms make in terms of inter-organisational arrangements for service provision. The research should be extended by way of a cross-sectional survey in order to test and further validate the importance of the determinants of the organisational arrangements for service provision.
Originality/Value – This article contributes to the service marketing and management literature by examining factors that determine whether firms organise for service provision internally, externally or through a hybrid configuration. Prior research has not explicitly addressed this issue.
Keywords – Industrial services, Organisational arrangement, Internalisation, Externalisation, Hybrid configuration, Service partner
Paper type – Research paper
Place, publisher, year, edition, pages
Bingley, UK: Emerald Group Publishing Limited , 2011. Vol. 21, no 4, 373-391 p.
Engineering and Technology
IdentifiersURN: urn:nbn:se:liu:diva-69645DOI: 10.1108/09604521111146252ISI: 000293987700004OAI: oai:DiVA.org:liu-69645DiVA: diva2:430432
Christian Kowalkowski, Daniel Kindström and Lars Witell, Internalisation or externalisation?: Examining organisational arrangements for industrial services, 2011, Managing Service Quality, (21), 4, 373-391.