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Servitization implementation in the manufacturing organisations: Classification of strategies, definitions, benefits and challenges

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  • Kamal, Muhammad Mustafa
  • Sivarajah, Uthayasankar
  • Bigdeli, Ali Ziaee
  • Missi, Farouk
  • Koliousis, Yannis

Abstract

The integration of products and services into a bundled product/service offering by manufacturing organisations is seen as a global trend in today’s competitive business environment. The shift of product-based manufacturers towards offering business solutions and value-added services to consumers is termed as ‘Servitization’. Contrary to the potential benefits expected by adding service activities to the offerings, advocates voice their concerns towards experiential problems and challenges in employing the servitization strategy – termed as ‘Servitization Paradox’. Nevertheless, the shift from product-based delivery to a service-based provision has the potential to significantly impact on developing sustainable and eco-friendly environment. To provide greater insights to the servitization phenomenon, this paper presents a comprehensive analysis of the servitization implementation in manufacturing organisations. In order to respond to the latter, we propose the following three research questions “Q1 – what are the different types of servitization strategies”, “Q2 – what are the different servitization definitions”, “Q3 – what are the potential benefits in selecting a servitization strategy?”, “Q4 – what are the challenges in transitioning towards servitization?”. A systematic literature review is carried out to understand the past trends and extant patterns/themes in the servitization strategy research area, evaluate contributions, summarise knowledge, thereby identifying limitations, implications and potential further research avenues. The key findings confirm servitization studies have contributed both conceptually and empirically to the development and accumulation of intellectual wealth to the manufacturing operations and supply chain discipline. Moreover, the findings clearly indicate the potential of servitization in transitioning manufacturing organisations (e.g. benefits) and utilising innovative technologies to generate business value. Nevertheless, some voices are backing further research/development in the area of servitization due to the several existing challenges.

Suggested Citation

  • Kamal, Muhammad Mustafa & Sivarajah, Uthayasankar & Bigdeli, Ali Ziaee & Missi, Farouk & Koliousis, Yannis, 2020. "Servitization implementation in the manufacturing organisations: Classification of strategies, definitions, benefits and challenges," International Journal of Information Management, Elsevier, vol. 55(C).
  • Handle: RePEc:eee:ininma:v:55:y:2020:i:c:s0268401219314355
    DOI: 10.1016/j.ijinfomgt.2020.102206
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    Citations

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    Cited by:

    1. Münch, Christopher & Marx, Emanuel & Benz, Lukas & Hartmann, Evi & Matzner, Martin, 2022. "Capabilities of digital servitization: Evidence from the socio-technical systems theory," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    2. Kurtz, Julian & Zinke-Wehlmann, Christian & Lugmair, Nina & Schymanietz, Martin & Roth, Angela, 2023. "Characterising smart service systems – Revealing the smart value," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 7(2), pages 112-128.
    3. Masi, Antonio & Pero, Margherita & Abdelkafi, Nizar, 2023. "Supply chain antecedents of servitization: A study in ETO machinery companies," International Journal of Production Economics, Elsevier, vol. 258(C).

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