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Towards an operations strategy model of servitization: the role of sustainability pressure

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  • Levente Szász

    (Babeș-Bolyai University)

  • László Seer

    (Babeș-Bolyai University)

Abstract

Servitization requires an important strategic shift to drive changes in the operations of manufacturing firms. Using a large-scale survey, the purpose of this paper is (1) to build and validate an operations strategy model of servitization confirming previous case study findings on servitization as a strategic action and (2) to explore the role of sustainability pressures in, and the sustainability performance effects of, pursuing service-based operations strategies. To reach these objectives, a dataset including the responses of 735 manufacturing plants from 21 different countries is analyzed using the PLS-SEM method. The results indicate that the sustainability pressures of stakeholders can push manufacturers to adopt a service-based operations strategy, materializing in the provision of both basic (product-oriented) and advanced (customer-oriented) services (BAS and ADS). Our analysis further indicates that while offering BAS is a precondition for ADS provision, only ADS can offer a competitive edge for manufacturers, both in terms of service and sustainability-related operational performance.

Suggested Citation

  • Levente Szász & László Seer, 2018. "Towards an operations strategy model of servitization: the role of sustainability pressure," Operations Management Research, Springer, vol. 11(1), pages 51-66, June.
    • Handle: RePEc:spr:opmare:v:11:y:2018:i:1:d:10.1007_s12063-018-0132-0
    DOI: 10.1007/s12063-018-0132-0
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    References listed on IDEAS

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    1. Levente Szász & Krisztina Demeter, 2015. "Business models along supply chain position and servitisation: An empirical investigation of European manufacturers," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 65(3), pages 367-391, September.
    2. Wolfgang Ulaga & Werner Reinartz, 2011. "Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully," Post-Print hal-00642039, HAL.
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    4. Rabetino, Rodrigo & Kohtamäki, Marko & Gebauer, Heiko, 2017. "Strategy map of servitization," International Journal of Production Economics, Elsevier, vol. 192(C), pages 144-156.
    5. Jeffrey G. Miller & Aleda V. Roth, 1994. "A Taxonomy of Manufacturing Strategies," Management Science, INFORMS, vol. 40(3), pages 285-304, March.
    6. 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.
    7. Gebauer, Heiko & Fleisch, Elgar & Friedli, Thomas, 2005. "Overcoming the Service Paradox in Manufacturing Companies," European Management Journal, Elsevier, vol. 23(1), pages 14-26, February.
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    Cited by:

    1. Idris Oyewale Oyelakin & Satirenjit Kaur Johl, 2022. "Does ISO 14001 and Green Servitization Provide a Push Factor for Sustainable Performance? A Study of Manufacturing Firms," Sustainability, MDPI, vol. 14(15), pages 1-22, August.
    2. 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.
    3. 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).
    4. Chen, Liping & Dai, Yishu & Ren, Fei & Dong, Xiaoying, 2023. "Data-driven digital capabilities enable servitization strategy——From service supporting the product to service supporting the client," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    5. Jifei Xie & Lulu Ma & Jiamin Li, 2023. "Servitization, Digitalization or Hand in Hand: A Study on the Sustainable Development Path of Manufacturing Enterprises," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    6. Sophie I. Hallstedt & Ola Isaksson & Anna Öhrwall Rönnbäck, 2020. "The Need for New Product Development Capabilities from Digitalization, Sustainability, and Servitization Trends," Sustainability, MDPI, vol. 12(23), pages 1-26, December.
    7. Hai Huang & Shengbin Hao & Yu Chen, 2023. "The more the better? Service transition for shaping sustainable development in manufacturing firms and the role of top management team attributes," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(6), pages 3255-3270, November.
    8. Josip Marić & Marco Opazo-Basáez, 2019. "Green Servitization for Flexible and Sustainable Supply Chain Operations: A Review of Reverse Logistics Services in Manufacturing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 20(1), pages 65-80, December.
    9. Szász, Levente & Csíki, Ottó & Rácz, Béla-Gergely, 2021. "Sustainability management in the global automotive industry: A theoretical model and survey study," International Journal of Production Economics, Elsevier, vol. 235(C).
    10. Hao Shen & Nan Mei & Yu Gao, 2020. "Matching entrepreneurial orientation and operations strategy for manufacturing firms in China," Operations Management Research, Springer, vol. 13(1), pages 39-52, June.
    11. Rita Henriques & Filipa Figueiredo & João Nunes, 2023. "Product-Services for a Resource-Efficient and Circular Economy: An Updated Review," Sustainability, MDPI, vol. 15(15), pages 1-24, August.
    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.

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