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Internalisation or externalisation?: Examining organisational arrangements for industrial services
Linköping University, Department of Management and Engineering, Industrial Marketing and Industrial Economics. Linköping University, The Institute of Technology.ORCID iD: 0000-0002-4081-9737
Linköping University, Department of Management and Engineering, Industrial Marketing and Industrial Economics. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Quality Technology and Management. Linköping University, The Institute of Technology.
2011 (English)In: Managing Service Quality, ISSN 0960-4529, E-ISSN 1758-8030, Vol. 21, no 4, 373-391 p.Article in journal (Refereed) Published
Abstract [en]

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.
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:liu:diva-69645DOI: 10.1108/09604521111146252ISI: 000293987700004OAI: oai:DiVA.org:liu-69645DiVA: diva2:430432
Note
Original Publication: Christian Kowalkowski, Daniel Kindström and Lars Witell, Internalisation or externalisation?: Examining organisational arrangements for industrial services, 2011, Managing Service Quality, (21), 4, 373-391. http://dx.doi.org/10.1108/09604521111146252 Copyright: Emerald http://www.emeraldinsight.com/ Available from: 2011-07-08 Created: 2011-07-08 Last updated: 2017-12-11

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