IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i14p8002-d596278.html
   My bibliography  Save this article

Exploring Servitization in Industrial Construction: A Sustainable Approach

Author

Listed:
  • Carlos Galera-Zarco

    (The Bartlett School, University College London, London WC1E 7HB, UK)

  • José Antonio Campos

    (Department of Management, Deusto Business School, University of Deusto, 48807 Bilbao, Spain)

Abstract

Off-site manufacturing is emerging as an advantageous production model in the construction industry. In recent years, many tier 1 construction companies are including off-site production as part of their portfolio. Likewise, this change of model is attracting new entrants to the sector. The shift from the traditional on-site construction model to off-site manufacturing is unleashing positive impacts on projects in terms of cost, time efficiency, sustainability, and improved quality. Nonetheless, this phenomenon has yet to be analysed from the perspective of how this change in production processes influences the inclusion of services in company business models. This study explores whether and how industrialisation arises as an enabler for servitization in the construction sector. By means of an in-depth case study, our research identifies different product-service system (PSS) typologies associated with industrial construction and reveals their potential to increase additional services. Furthermore, the research sheds light on how industrial construction provides an opportunity to integrate offers and features that work towards reducing the environmental impact of construction projects and the operation and maintenance of built assets.

Suggested Citation

  • Carlos Galera-Zarco & José Antonio Campos, 2021. "Exploring Servitization in Industrial Construction: A Sustainable Approach," Sustainability, MDPI, vol. 13(14), pages 1-19, July.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:8002-:d:596278
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/14/8002/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/13/14/8002/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    2. Ricardo J. Hernández Pardo & Tracy Bhamra & Ran Bhamra, 2012. "Sustainable Product Service Systems in Small and Medium Enterprises (SMEs): Opportunities in the Leather Manufacturing Industry," Sustainability, MDPI, vol. 4(2), pages 1-18, January.
    3. Manuel Rios De Haro & Marco Opazo-Basáez & Daniel Arias Aranda, 2019. "IT implementation and customer results: the mediating role of the competitive priorities achieved by the firm," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 10(4), pages 329-345.
    4. William G. Robinson & Paul W. Chan & Thomas Lau, 2016. "Sensors and sensibility: examining the role of technological features in servitizing construction towards greater sustainability," Construction Management and Economics, Taylor & Francis Journals, vol. 34(1), pages 4-20, January.
    5. Marina P. P. Pieroni & Tim C. McAloone & Daniela C. A. Pigosso, 2019. "Configuring New Business Models for Circular Economy through Product–Service Systems," Sustainability, MDPI, vol. 11(13), pages 1-22, July.
    6. Louise Laumann Kjaer & Daniela C. A. Pigosso & Monia Niero & Nynne Marie Bech & Tim C. McAloone, 2019. "Product/Service‐Systems for a Circular Economy: The Route to Decoupling Economic Growth from Resource Consumption?," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 22-35, February.
    7. Arnold Tukker, 2004. "Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 246-260, July.
    8. Oscar F. Bustinza & Ferrán Vendrell-Herrero & Francisco J. Sánchez-Montesinos & José Antonio Campos-Granados, 2021. "Should Manufacturers Support the Entire Product Lifecycle with Services?," Sustainability, MDPI, vol. 13(5), pages 1-14, February.
    9. Oscar F. Bustinza & Ferran Vendrell-Herrero & Emanuel Gomes & Esteban Lafuente & Marco Opazo-Basáez & Rodrigo Rabetino & Yancy Vaillant, 2018. "Product-service innovation and performance: unveiling the complexities," International Journal of Business Environment, Inderscience Enterprises Ltd, vol. 10(2), pages 95-111.
    10. Peng Zhang & Shaohua Jing & Zifeng Nie & Boyuan Zhao & Runhua Tan, 2021. "Design and Development of Sustainable Product Service Systems Based on Design-Centric Complexity," Sustainability, MDPI, vol. 13(2), pages 1-27, January.
    11. Sabrina Cocca & Walter Ganz, 2015. "Requirements for developing green services," The Service Industries Journal, Taylor & Francis Journals, vol. 35(4), pages 179-196, February.
    12. Baines, Tim & Ziaee Bigdeli, Ali & Sousa, Rui & Schroeder, Andreas, 2020. "Framing the servitization transformation process: A model to understand and facilitate the servitization journey," International Journal of Production Economics, Elsevier, vol. 221(C).
    13. Noha M. Galal & Ahmed F. Abdul Moneim, 2015. "A Mathematical Programming Approach to the Optimal Sustainable Product Mix for the Process Industry," Sustainability, MDPI, vol. 7(10), pages 1-19, September.
    14. Kohtamäki, Marko & Parida, Vinit & Oghazi, Pejvak & Gebauer, Heiko & Baines, Tim, 2019. "Digital servitization business models in ecosystems: A theory of the firm," Journal of Business Research, Elsevier, vol. 104(C), pages 380-392.
    15. Li, Ai Qiang & Kumar, Maneesh & Claes, Björn & Found, Pauline, 2020. "The state-of-the-art of the theory on Product-Service Systems," International Journal of Production Economics, Elsevier, vol. 222(C).
    16. 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.
    17. Sklyar, Alexey & Kowalkowski, Christian & Tronvoll, Bård & Sörhammar, David, 2019. "Organizing for digital servitization: A service ecosystem perspective," Journal of Business Research, Elsevier, vol. 104(C), pages 450-460.
    18. Weber, K. Matthias & Schaper-Rinkel, Petra, 2017. "European sectoral innovation foresight: Identifying emerging cross-sectoral patterns and policy issues," Technological Forecasting and Social Change, Elsevier, vol. 115(C), pages 240-250.
    19. Catherine E. Cherry & Nick F. Pidgeon, 2018. "Why Is Ownership an Issue? Exploring Factors That Determine Public Acceptance of Product-Service Systems," Sustainability, MDPI, vol. 10(7), pages 1-15, July.
    20. Vinit Parida & David Sjödin & Wiebke Reim, 2019. "Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    21. Vendrell-Herrero, Ferran & Bustinza, Oscar F. & Opazo-Basaez, Marco, 2021. "Information technologies and product-service innovation: The moderating role of service R&D team structure," Journal of Business Research, Elsevier, vol. 128(C), pages 673-687.
    22. Marco Opazo-Basáez & Ferran Vendrell-Herrero & Oscar F. Bustinza, 2018. "Uncovering Productivity Gains of Digital and Green Servitization: Implications from the Automotive Industry," Sustainability, MDPI, vol. 10(5), pages 1-17, May.
    23. Chong-Wen Chen, 2018. "Guidance on the Conceptual Design of Sustainable Product–Service Systems," Sustainability, MDPI, vol. 10(7), pages 1-15, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Priyadarshini Das & Amer A. Hijazi & Duncan W. Maxwell & Robert C. Moehler, 2023. "Can Business Models Facilitate Strategic Transformation in Construction Firms? A Systematic Review and Research Agenda," Sustainability, MDPI, vol. 15(17), pages 1-20, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wim Coreynen & Arjen van Witteloostuijn & Johanna Vanderstraeten, 2021. "Toward Servitized Research: An Integrated Approach for Sustainable Product-Service Innovation," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    2. Shen, Lei & Sun, Wanqin & Parida, Vinit, 2023. "Consolidating digital servitization research: A systematic review, integrative framework, and future research directions," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    3. Bustinza, Oscar F. & Opazo-Basaez, Marco & Tarba, Shlomo, 2022. "Exploring the interplay between Smart Manufacturing and KIBS firms in configuring product-service innovation performance," Technovation, Elsevier, vol. 118(C).
    4. 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).
    5. Alberto de la Calle & Inmaculada Freije & Aitor Oyarbide, 2021. "Digital Product–Service Innovation and Sustainability: A Multiple-Case Study in the Capital Goods Industry," Sustainability, MDPI, vol. 13(11), pages 1-29, June.
    6. Mosch, Philipp & Schweikl, Stefan & Obermaier, Robert, 2021. "Trapped in the supply chain? Digital servitization strategies and power relations in the case of an industrial technology supplier," International Journal of Production Economics, Elsevier, vol. 236(C).
    7. Struwe, Sascha & Slepniov, Dmitrij, 2023. "Unlocking digital servitization: A conceptualization of value co-creation capabilities," Journal of Business Research, Elsevier, vol. 160(C).
    8. Schiavone, Francesco & Leone, Daniele & Caporuscio, Andrea & Lan, Sai, 2022. "Digital servitization and new sustainable configurations of manufacturing systems," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    9. Antonio Farías & Christian A. Cancino, 2021. "Digital Transformation in the Chilean Lodging Sector: Opportunities for Sustainable Businesses," Sustainability, MDPI, vol. 13(14), pages 1-17, July.
    10. Kohtamäki, Marko & Parida, Vinit & Patel, Pankaj C. & Gebauer, Heiko, 2020. "The relationship between digitalization and servitization: The role of servitization in capturing the financial potential of digitalization," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    11. David Hidalgo-Carvajal & Ruth Carrasco-Gallego & Gustavo Morales-Alonso, 2021. "From Goods to Services and from Linear to Circular: The Role of Servitization’s Challenges and Drivers in the Shifting Process," Sustainability, MDPI, vol. 13(8), pages 1-26, April.
    12. Sehrish Atif, 2023. "Mapping circular economy principles and servitisation approach in business model canvas: an integrated literature review," Future Business Journal, Springer, vol. 9(1), pages 1-21, December.
    13. Shleha, Waleed & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2023. "Entry mode diversity and closing commercial deals with international customers: The moderating role of advanced servitization," International Business Review, Elsevier, vol. 32(1).
    14. Tian, Jiamian & Coreynen, Wim & Matthyssens, Paul & Shen, Lei, 2022. "Platform-based servitization and business model adaptation by established manufacturers," Technovation, Elsevier, vol. 118(C).
    15. Lino Cinquini & Cristina Campanale & Alessandro Marelli & Sara Giovanna Mauro & Andrea Tenucci, 2020. "La misurazione di costi e performance nei La misurazione di costi e performance nei modelli di business orientati ai servizi: una ricerca esplorativa modelli di business orientati ai servizi: una rice," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2020(3), pages 59-85.
    16. Huikkola, Tuomas & Kohtamäki, Marko & Rabetino, Rodrigo & Makkonen, Hannu & Holtkamp, Philipp, 2022. "Overcoming the challenges of smart solution development: Co-alignment of processes, routines, and practices to manage product, service, and software integration," Technovation, Elsevier, vol. 118(C).
    17. Chankook Park, 2022. "Expansion of servitization in the energy sector and its implications," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(4), July.
    18. Yan Chen & Zijin Wang & Jaime Ortiz, 2023. "A Sustainable Digital Ecosystem: Digital Servitization Transformation and Digital Infrastructure Support," Sustainability, MDPI, vol. 15(2), pages 1-16, January.
    19. Lena Ries & Markus Beckmann & Peter Wehnert, 2023. "Sustainable smart product-service systems: a causal logic framework for impact design," Journal of Business Economics, Springer, vol. 93(4), pages 667-706, May.
    20. Mar’atus Sholihah & Tatsuru Maezono & Yuya Mitake & Yoshiki Shimomura, 2020. "Formulating Service-Oriented Strategies for Servitization of Manufacturing Companies," Sustainability, MDPI, vol. 12(22), pages 1-30, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:14:p:8002-:d:596278. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.