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Value Creation through Service Offers

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  • Malleret, Véronique

Abstract

This paper discusses the profitability of service offerings by small and medium sized industrial firms. The first part summarizes the main arguments supporting the theoretical debate. The second part presents the results of a field study made in six industrial SMEs; it highlights the heterogeneity of their policies and practices regarding the pricing and costing of their service offers. The last part of the paper stresses the conditions and actions required to make services actually profitable for manufacturing companies.

Suggested Citation

  • Malleret, Véronique, 2006. "Value Creation through Service Offers," European Management Journal, Elsevier, vol. 24(1), pages 106-116, February.
    • Handle: RePEc:eee:eurman:v:24:y:2006:i:1:p:106-116
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    Citations

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    Cited by:

    1. Lee, Sunghee & Yoo, Shijin & Kim, Daeki, 2016. "When is servitization a profitable competitive strategy?," International Journal of Production Economics, Elsevier, vol. 173(C), pages 43-53.
    2. Natalia Reen & Magnus Hellström & Kim Wikström & Olga Perminova-Harikoski, 2017. "Towards value-driven strategies in pricing IT solutions," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 16(1), pages 91-105, February.
    3. Sophie BOUTILLIER & Blandine LAPERCHE & Fabienne PICARD, 2013. "L’économie de la fonctionnalité : perspective historique et illustration empirique [The economy of functionality: historical perspective and empirical illustration]," Working Papers 35, Réseau de Recherche sur l’Innovation. / Research Network on Innovation.
    4. Grover,Arti Goswami & Mattoo,Aaditya, 2021. "Why Do Manufacturing Firms Sell Services ? Evidence from India," Policy Research Working Paper Series 9701, The World Bank.
    5. Dachs, Bernhard & Biege, Sabine & Borowiecki, Marcin & Lay, Gunther & Jäger, Angela & Schartinger, Doris, 2012. "The Servitization of European Manufacturing Industries," MPRA Paper 38873, University Library of Munich, Germany.
    6. Rabetino, Rodrigo & Kohtamäki, Marko & Gebauer, Heiko, 2017. "Strategy map of servitization," International Journal of Production Economics, Elsevier, vol. 192(C), pages 144-156.
    7. Gebauer, Heiko & Paiola, Marco & Edvardsson, Bo, 2012. "A capability perspective on service business development in small and medium-sized suppliers," Scandinavian Journal of Management, Elsevier, vol. 28(4), pages 321-339.
    8. Yuanqiong He & Hongyi Sun & Kin Lai & Yun Chen, 2015. "Organizational empowerment and service strategy in manufacturing," Service Business, Springer;Pan-Pacific Business Association, vol. 9(3), pages 445-462, September.
    9. Zong, Yi & Gu, Guoda, 2022. "The threshold effect of manufacturing Servitization on carbon emission: An empirical analysis based on multinational panel data," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 353-364.
    10. Kati Stormi & Anni Lindholm & Teemu Laine & Tuomas Korhonen, 2020. "RFM customer analysis for product-oriented services and service business development: an interventionist case study of two machinery manufacturers," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(3), pages 623-653, September.
    11. Marc Bollecker, 2009. "Contrôleur de gestion : une fonction en danger ?," Post-Print halshs-00456209, HAL.
    12. Martinez, Veronica & Neely, Andy & Velu, Chander & Leinster-Evans, Stewart & Bisessar, Dav, 2017. "Exploring the journey to services," International Journal of Production Economics, Elsevier, vol. 192(C), pages 66-80.
    13. Gebauer, Heiko & Saul, Caroline, 2014. "Eine bibliometrische Analyse des Forschungsstandes und der zukünftigen Forschungsfragen für die Transformation vom Produzenten zum Dienstleister," Die Unternehmung - Swiss Journal of Business Research and Practice, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 68(4), pages 229-249.
    14. Sara Foghani & Batiah Mahadi & Parisa Mohammadi, 2023. "Determination of SMEs’ Internationalization in Malaysian Context," Business Management and Strategy, Macrothink Institute, vol. 14(1), pages 25-44, June.
    15. Paiola, Marco & Saccani, Nicola & Perona, Marco & Gebauer, Heiko, 2013. "Moving from products to solutions: Strategic approaches for developing capabilities," European Management Journal, Elsevier, vol. 31(4), pages 390-409.
    16. Tether, B. & Bascavusoglu-Moreau, E., 2012. "A Different Path to Growth? Service Innovation and Performance amongst UK Manufacturers," Working Papers wp433, Centre for Business Research, University of Cambridge.
    17. Dannenbaum, Judith & Edinger-Schons, Laura Marie & Rese, Mario & Plötner, Olaf & Wieseke, Jan, 2020. "What Does it Take to Successfully Implement a Hybrid Offering Strategy? A Contingency Perspective," SMR - Journal of Service Management Research, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 4(2-3), pages 100-120.
    18. STEREA Diana - Ioana, 2023. "Determining a Revenue Generating Model that Creates Customer Value by Using a Skip-the-line Application in Romania," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    19. Gebauer, Heiko & Saul, Caroline Jennings & Haldimann, Mirella & Gustafsson, Anders, 2017. "Organizational capabilities for pay-per-use services in product-oriented companies," International Journal of Production Economics, Elsevier, vol. 192(C), pages 157-168.

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