What service transition?: Rethinking established assumptions about manufacturers’ service-led growth strategies
2015 (English)In: Industrial Marketing Management, ISSN 0019-8501, E-ISSN 1873-2062, Vol. 45, 59-69 p.Article in journal (Refereed) Published
Both academics and practitioners emphasize the importance for product firms of implementing service-led growth strategies. The service transition concept is well established, namely a unidirectional repositioning along a product-service continuum—from basic, product-oriented services towards more customized, process-oriented ones—ultimately leading to the provision of solutions. We challenge this service transition assumption and develop alternative ones regarding how product firms should pursue service-led growth. Using ‘problematization methodology’, and drawing on findings from thirteen system suppliers, we identify three service-led growth trajectories: (1) becoming an availability provider, which is the focus of most transition literature; (2) becoming a performance provider, which resembles project-based sales and implies an even greater differentiation of what customers are offered; and, (3) becoming an ‘industrializer’, which is about standardizing previously customized solutions to promote repeatability and scalability. Based on our critical inquiry, we develop two alternative assumptions: (a) firms need to constantly balance business expansion and standardization activities; and (b) manage the co-existence of different system supplier roles. Finally, we consider the implications for implementing service-led growth strategies of the alternative assumptions.
Place, publisher, year, edition, pages
Elsevier, 2015. Vol. 45, 59-69 p.
Service transition; Solutions; Manufacturing companies; Service strategy; Problematization methodology
IdentifiersURN: urn:nbn:se:liu:diva-117411DOI: 10.1016/j.indmarman.2015.02.016ISI: 000353088700008OAI: oai:DiVA.org:liu-117411DiVA: diva2:807903