Adopting service suppliers for servitisation: which type of supplier involvement is more effective?

PurposeThe purpose of this study is to analyse the effect of different forms of service supplier involvement on the service business dimensions necessary for servitisation and on the resulting servitisation performance.Design/methodology/approachThree different configurations of service supplier involvement are considered in this study: black box (service design and execution driven by the service supplier), grey box (joint service design) and white box (service design driven by the product firm). The study analyses their contribution by means of a cross-sectional quantitative survey with 104 Brazilian and Italian firms using multivariate analysis of variance.FindingsCompanies that adopted the grey box configuration presented the best results in servitisation. White and black box may offer different benefits depending on the service business dimension that the company chooses to emphasise.Originality/valueThe results show which type of service supplier involvement is more effective for servitisation. The empirical data demonstrate that a joint service design (grey box involvement) is the best approach, but the paper discusses limitations for its implementation and alternatives regarding the two other types of service supplier involvement. The findings contribute to the discussion on the role of service suppliers in servitisation and provide empirical evidence to support operations managers in deciding on how to organise their service supply chain when aiming for servitisation.

[1]  G. B. Benitez,et al.  Industry 4.0 innovation ecosystems: An evolutionary perspective on value cocreation , 2020 .

[2]  Valéry Merminod,et al.  The contribution of IT-leveraging capability for collaborative product development with suppliers , 2020, J. Strateg. Inf. Syst..

[3]  A. Ghezzi,et al.  Smart Products value creation in SMEs innovation ecosystems , 2020 .

[4]  T. Baines,et al.  Digital servitization business models in ecosystems: A theory of the firm , 2019, Journal of Business Research.

[5]  Glauco Henrique de Sousa Mendes,et al.  Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective , 2019, Technological Forecasting and Social Change.

[6]  Lucas Santos Dalenogare,et al.  Industry 4.0 technologies: Implementation patterns in manufacturing companies , 2019, International Journal of Production Economics.

[7]  N. F. Ayala,et al.  Managing servitization in product companies: the moderating role of service suppliers , 2019, International Journal of Operations & Production Management.

[8]  K. Lai,et al.  The impact of servitization on firm performance: a meta-analysis , 2018, International Journal of Operations & Production Management.

[9]  Mark Johnson,et al.  Building bridges: boundary spanners in servitized supply chains , 2018 .

[10]  A. Ghezzi,et al.  Knowledge sharing dynamics in service suppliers' involvement for servitization of manufacturing companies , 2017 .

[11]  Javier Cenamor,et al.  Adopting a platform approach in servitization : Leveraging the value of digitalization , 2017 .

[12]  Marko Bastl,et al.  Manufacturer-supplier relationships and service performance in service triads , 2017 .

[13]  G. D. Silveira,et al.  Capability antecedents and performance outcomes of servitization , 2017 .

[14]  Ali Ziaee Bigdeli,et al.  Interactively developed capabilities:evidence from dyadic servitization relationships , 2017 .

[15]  Rogelio Oliva,et al.  Service Growth in Product Firms: Past, Present, and Future , 2016 .

[16]  Daniel Kindström,et al.  Triadic Value Propositions: When It Takes More Than Two to Tango , 2016 .

[17]  Nicola Saccani,et al.  Internal and external alignment in the servitization journey – overcoming the challenges , 2015 .

[18]  A. Gustafsson,et al.  Service manoeuvres to overcome challenges of servitisation in a value network , 2015 .

[19]  A. Rindfleisch,et al.  Outsourcing customer support : The role of provider customer focus , 2015 .

[20]  Charlotta Windahl.  Understanding solutions as technology-driven business innovations , 2015 .

[21]  Valery Merminod,et al.  A knowledge sharing framework for black, grey and white box supplier configurations in new product development , 2014 .

[22]  Max Finne,et al.  The organisational environment’s impact on the servitization of manufacturers , 2014 .

[23]  T. Baines,et al.  SERVITIZATION CAPABILITIES FOR ADVANCED SERVICES: A MULTI-ACTOR PERSPECTIVE , 2014 .

[24]  N. Saccani,et al.  Investigating the linkages between service types and supplier relationships in servitized environments , 2014 .

[25]  Daniel Kindström,et al.  Service Innovation in Product-Centric Firms: A Multidimensional Business Model Perspective , 2014 .

[26]  Steven J. Kahl,et al.  Services, Industry Evolution and the Competitive Strategies of Product Firms , 2014 .

[27]  Heiko Gebauer,et al.  Moving from products to solutions: Strategic approaches for developing capabilities , 2013 .

[28]  B. Looy,et al.  Servitization: Disentangling the Impact of Service Business Model Innovation on Manufacturing Firm Performance , 2013 .

[29]  J. Holmström,et al.  A manufacturer moving upstream: triadic collaboration for service delivery , 2013 .

[30]  Michael A. Cusumano,et al.  Services and the Business Models of Product Firms: An Empirical Analysis of the Software Industry , 2013, Manag. Sci..

[31]  H. Lightfoot,et al.  Buyer‐supplier relationships in a servitized environment: An examination with Cannon and Perreault's framework , 2012 .

[32]  Ian Miles,et al.  Service innovation in manufacturing firms: Evidence from Spain , 2012 .

[33]  Rogelio Oliva,et al.  Separate or Integrate? Assessing the Impact of Separation Between Product and Service Business on Service Performance in Product Manufacturing Firms , 2011, Journal of Business-to-Business Marketing.

[34]  Daniel Kindström,et al.  Internalisation or externalisation?: Examining organisational arrangements for industrial services , 2011 .

[35]  Rajkumar Roy,et al.  Operations strategy for the effective delivery of integrated industrial product‐service offerings , 2011 .

[36]  S. Evans,et al.  Product service systems and supply network relationships: an exploratory case study , 2011 .

[37]  Veronica Martinez,et al.  Challenges in transforming manufacturing organisations into product‐service providers , 2010 .

[38]  Thomas Y. Choi,et al.  TRIADS IN SERVICES OUTSOURCING: BRIDGE, BRIDGE DECAY AND BRIDGE TRANSFER , 2009 .

[39]  Wendy L. Tate,et al.  Offshore outsourcing of professional services: A transaction cost economics perspective , 2008 .

[40]  Nicolette Lakemond,et al.  Developing integrated solutions: The importance of relationships within the network , 2006 .

[41]  Stephen W. Brown,et al.  Forming Successful Business-to-Business Services in Goods-Dominant Firms , 2005 .

[42]  Saara A. Brax,et al.  A manufacturer becoming service provider – challenges and a paradox , 2005 .

[43]  R. Handfield,et al.  Supplier integration into new product development: coordinating product, process and supply chain design , 2005 .

[44]  E. Fleisch,et al.  Overcoming the Service Paradox in Manufacturing Companies , 2005 .

[45]  Scott B. MacKenzie,et al.  Common method biases in behavioral research: a critical review of the literature and recommended remedies. , 2003, The Journal of applied psychology.

[46]  Valérie Mathieu,et al.  Service strategies within the manufacturing sector: benefits, costs and partnership , 2001 .

[47]  M. Lubatkin,et al.  Learning together and apart: A model of reciprocal interfirm learning , 2001 .

[48]  Jeffrey H. Dyer,et al.  The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage , 1998 .

[49]  Richard P. Bagozzi,et al.  Assessing Construct Validity in Organizational Research , 1991 .

[50]  Terry S. Overton,et al.  Estimating Nonresponse Bias in Mail Surveys , 1977 .

[51]  Giuditta Pezzotta,et al.  Services Extending Products: A Comparative Analysis in Emerging and Developed Countries , 2017 .

[52]  P. Matthyssens,et al.  Boosting servitization through digitization: Pathways and dynamic resource configurations for manufacturers , 2017 .

[53]  H. Meier,et al.  Industrial Product-Service Systems—IPS2 , 2010 .