Capability antecedents and performance outcomes of servitization: differences between basic and advanced services

Rui Sousa*, Giovani J. C. da Silveira

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

130 Citations (Scopus)

Abstract

Purpose: The purpose of this paper is to theoretically articulate and empirically test an integrated model of capability antecedents and performance outcomes of servitization strategies. The authors characterize servitization strategies based on the offering of two types of services: basic services (BAS) and advanced services (ADS). Design/methodology/approach: Hypotheses are tested based on statistical analyses of a large survey of manufacturers from different countries and sectors. Findings: The authors find that manufacturing capabilities associate with the provision of BAS, while service capabilities associate with both BAS and ADS; BAS do not impact financial performance, but support the offering of ADS; there seem to be naturally occurring servitization trajectories involving the gradual development of balanced levels of BAS and ADS and adequate levels of manufacturing and service capabilities. Research limitations/implications: The findings on servitization trajectories are based on the observation of manufacturing business units at different stages of servitization (cross-sectional data). Practical implications: Manufacturers wishing to servitize should distinguish between BAS and ADS and deploy a balanced adoption of BAS and ADS, using BAS as a platform. This should be accompanied with the building of appropriate capabilities. Originality/value: This is one of the first studies to show an explicit link between different servitization strategies, capabilities, and servitization maturity. It provides new insights into the servitization paradox and servitization trajectories.

Original languageEnglish
Pages (from-to)444-467
Number of pages24
JournalInternational Journal of Operations and Production Management
Volume37
Issue number4
DOIs
Publication statusPublished - 2017

Keywords

  • Capabilities
  • Financial performance
  • Manufacturing strategy
  • Servitization

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