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Service Orientation in Manufacturing Firms: Understanding Challenges with Service Business Logic
Karlstad University, Faculty of Arts and Social Sciences (starting 2013), Service Research Center.
2014 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Globalisation and competition from low-cost countries has pushed manufacturing firms towards offering services to remain competitive. However, increasing the service orientation of a manufacturing firm to find new ways of value (co-)creation has presented several challenges, such as the fact that services do not provide the expected revenues, and resistance from both the sales force and from customers towards services.

The aim of this thesis is to understand challenges linked to increasing service orientation in manufacturing firms, by means of goods and service business logics. The thesis emphasises the three dimensions of business logics – value perspective, service business strategy, and service offering – and studies them empirically in service divisions in the pulp and paper industry and in the automotive industry.

The findings show that firms with inconsistency between the three dimensions face certain challenges. Most often, the firms have a value perspective of goods business logic, but a service business strategy and a service offering of service business logic. Therefore, the most important and most difficult challenge to overcome in order to increase a manufacturing firm’s service orientation is the employees’ value perspective.

Three service manoeuvres were key to overcoming this challenge: changing employees’ mind-sets, starting to value services, and separating products and services. Although separating products and services could be assessed as a service manoeuvre consistent with goods business logic, it facilitated an increased service orientation. The fact that goods business logic manoeuvres led to a higher degree of service orientation, whereas service business logic manoeuvres did not always do so, is discussed as a service orientation paradox.

 

 

 

Place, publisher, year, edition, pages
Karlstad: Karlstads universitet, 2014. , p. 94
Series
Karlstad University Studies, ISSN 1403-8099 ; 2014:30
Keyword [en]
Service business logic, Value co-creation, Services in manufacturing firms, Service orientation
National Category
Social Sciences
Research subject
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-31986ISBN: 978-91-7063-562-5 (print)OAI: oai:DiVA.org:kau-31986DiVA: diva2:714340
Public defence
2014-06-05, 11D 227, Karlstads Universitet, Karlstad, 13:00 (English)
Opponent
Supervisors
Available from: 2014-05-23 Created: 2014-04-27 Last updated: 2014-05-23Bibliographically approved
List of papers
1. Degree of Service-orientation in the pulp and paper industry
Open this publication in new window or tab >>Degree of Service-orientation in the pulp and paper industry
2009 (English)In: International Journal of Services Technology and Management, ISSN 1460-6720, E-ISSN 1741-525X, Vol. 11, no 1, p. 24-41Article in journal (Refereed) Published
Abstract [en]

Many companies in the process industries are seeing the advantages of services but are struggling with the changes these require as regards the offering and the organisation. This paper presents an empirical investigation within the pulp and paper industry based on a survey of Swedish manufacturing firms and a multiple case study of three case companies and their customers. To investigate whether the manufacturers active in this industry are product-oriented or are becoming more service-oriented, five themes important to the companies under study are presented and discussed: that is, finding the right mix of physical products and services, the concept of service, business models, technology-based services and organising service delivery.

Keyword
industrial services, value creation, service orientation, services management, pulp and paper industry, process industries, manufacturing firms, Sweden, business models, technology-based services, service delivery
National Category
Business Administration
Research subject
Business Administration
Identifiers
urn:nbn:se:kau:diva-9804 (URN)10.1504/IJSTM.2009.02238 (DOI)
Available from: 2012-02-08 Created: 2012-02-08 Last updated: 2017-12-07Bibliographically approved
2. Service Innovations in Manufacturing Firms
Open this publication in new window or tab >>Service Innovations in Manufacturing Firms
2010 (English)In: Managing Service Quality, ISSN 0960-4529, E-ISSN 1758-8030, Vol. 20, no 2, p. 161-175Article in journal (Refereed) Published
National Category
Business Administration Psychology Religious Studies
Research subject
Business Administration; Psychology; Religious Studies and Theology
Identifiers
urn:nbn:se:kau:diva-9934 (URN)
Available from: 2012-02-08 Created: 2012-02-08 Last updated: 2017-12-07Bibliographically approved
3. Service Strategies in a Supply Chain
Open this publication in new window or tab >>Service Strategies in a Supply Chain
2010 (English)In: Journal of Service Management, ISSN 1757-5818, E-ISSN 1757-5826, Vol. 21, no 4, p. 427-440Article in journal (Refereed)
National Category
Business Administration Psychology Religious Studies
Research subject
Business Administration; Psychology; Religious Studies and Theology
Identifiers
urn:nbn:se:kau:diva-9937 (URN)
Available from: 2012-02-08 Created: 2012-02-08 Last updated: 2017-12-07Bibliographically approved
4. Service manoeuvres to overcome challenges of servitisation in a value network
Open this publication in new window or tab >>Service manoeuvres to overcome challenges of servitisation in a value network
2015 (English)In: Production planning & control (Print), ISSN 0953-7287, E-ISSN 1366-5871, Vol. 26, no 14-15, p. 1188-1197Article in journal (Refereed) Published
Abstract [en]

When manufacturing firms increase the share of service revenues, managing service provision becomes challenging. This study extends previous research on servitisation in individual firms by analysing the challenges service provision creates in a value network. The challenges are identified both within the firms and in the business relationships in the value network. In addition, the paper identifies and describes service manoeuvres firms use to address challenges resulting from servitisation. This case study of a value network is based on interviews carried out at 13 firms in the automotive industry, including suppliers, original equipment manufacturers and consultancies. The research shows that service manoeuvres, such as new types of resource integration and value constellations, are used to overcome challenges in the value network.

Keyword
servitisation, value network, challenges, manufacturing firms, service manoeuvres, case study
National Category
Economics and Business
Identifiers
urn:nbn:se:kau:diva-32139 (URN)10.1080/09537287.2015.1033491 (DOI)000361378400003 ()
Available from: 2014-05-23 Created: 2014-05-23 Last updated: 2017-12-06Bibliographically approved
5. Tracing a service business logic in manufacturing firms
Open this publication in new window or tab >>Tracing a service business logic in manufacturing firms
(English)Manuscript (preprint) (Other academic)
National Category
Economics and Business
Identifiers
urn:nbn:se:kau:diva-32140 (URN)
Available from: 2014-05-23 Created: 2014-05-23 Last updated: 2014-11-20Bibliographically approved

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