Servitization and operations management : a service-dominant logic approach
Smith, Laura A., Maull, Roger and Ng, Irene C. L. (2012) Servitization and operations management : a service-dominant logic approach. Working Paper. Coventry: WMG. (WMG Service Systems Research Group Working Paper Series).
WRAP_Ng_1073733-wmg-090812-wp10-serv_and_ops_mgt_s-d_logic_approach.pdf - Submitted Version
Download (1883Kb) | Preview
Official URL: http://www2.warwick.ac.uk/fac/sci/wmg/research/rtg...
Managing organisational performance in sectors such as equipment provision has become increasingly complex as competition has heightened and firms have felt pressure to add value through the provision of services (Baines et al, 2007; Howard and Caldwell, 2011; Neely et al., 2011). This provision is commonly referred to as the servitization of manufacturing (Vandermerwe & Rada, 1988). By extending the traditional offering of equipment to include service activities however, underlying operational delivery systems and processes have become more complex to manage and co-ordinate. No longer are firms simply making and shipping products; they are now engaged in a more complex world of design and delivery (Neely et al., 2011). This study aims to explore servitization from a value perspective through the lens of Service-Dominant (S-D) logic, and to propose its implications for operations management.
|Item Type:||Working or Discussion Paper (Working Paper)|
|Subjects:||H Social Sciences > HD Industries. Land use. Labor|
|Divisions:||Faculty of Science > WMG (Formerly the Warwick Manufacturing Group)|
|Library of Congress Subject Headings (LCSH):||Manufacturing industries -- Customer services, Operations research|
|Series Name:||WMG Service Systems Research Group Working Paper Series|
|Place of Publication:||Coventry|
|Number of Pages:||37|
|Access rights to Published version:||Open Access|
|References:||Acha, V., Davies, A., Hobday, M. and Salter, A. (2004), “Exploring the capital goods economy: Complex product systems in the UK”, Industrial and Corporate Change, Vol. 13 No. 3, pp. 505-529. Anderson, J. C. and Narus, J. A. (1995), “Capturing the value of supplementary services”, Harvard Business Review, January-February, pp. 75-83 Baines, T.S., Lightfoot, H. W., Evans, S., Neely, A., Greenough, R., Peppard, J., Roy, R., Shehab, E., Braganza, A., Tiwari, A., Alcock, J. R., Angus, J. P., Bastl, M., Cousens, A., Irving, P., Johnson, M., Kingston, J., Lockett, H., Martinez, V., Michele, P., Tranfield, D., Walton, I. M. and Wilson, H. (2007), “State-of-the-art in product-service systems” in Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture, Vol. 221, No.10 Ballantyne, D., & Varey, R. J. (2006). “Introducing a dialogical orientation to the servicedominant logic of marketing”, in Vargo, S. L. & Lusch, R. F. (Eds.), Toward a service dominant logic: Dialog, debate, and directions, Armonk, New York: M.E. Sharpe, pp. 224– 235 Beverland, M., Farrelly, F. and Woodhatch, Z. (2004), “The role of value change management in relationship dissolution: hygiene and motivational factors”, journal of marketing management, Vol. 20, pp. 927−939. Botta, C. and Steinbach, M. (2004), "Integrated View on Products and Services - Product- Service Systems.," in 5th Conference on Modern Information Technology in the Innovation Processes of the Industrial Enterprises (MITIP 2004), Saarbruecken, Germany: German Research Center for Artificial Intelligence. Brezet, J.C., Bijma, A. S., Ehrenfeld, J. and Silvester, S. (2001), "The design of eco-efficient services: Method, tools and review of the case study based ‘designing eco-efficient services" Delft: Dutch Ministries of Environment (VROM) & Delft University of Technology. Bullinger, H-J., Fähnrich, K-P. and Meiren, T. (2003), "Service engineering--methodical development of new service products," International Journal of Production Economics, Vol.85 No.3, pp. 275-87. Buzacott, J. A. (2000). "Service system structure", International Journal of Production Economics, Vol. 68, No 1, pp. 15-27 Chandler, Jennifer D., and Vargo, S.L. (2011), "Contextualization and value-in-context: How context frames exchange" Marketing Theory, Vol. 11, No. 1, pp. 35-49 Cook, M.B., Bhamra, T.A. and Lemon, M. (2006), “The transfer and application of product service systems: From academia to UK manufacturing firms”, Journal of Cleaner Production, Vol.14, pp. 1455- 1465. Davies, A. and Hobday, M. (2005), The business of Projects: Managing Innovation In Complex Projects And Systems, Cambridge University Press, Cambridge, UK. Dooley, D. (2001), Social Research Methods, Prentice-Hall, Upper Saddle River, New Jersey. Eisenhardt, K. M. and Graebner, M. E. (2007), "Theory building from cases: opportunities and challenges", Academy of Management Journal, Vol. 50 No. 1, pp. 25-32. Eisenhardt, K.M. (1989), “Building theories from case study research”, Academy of Management Review, Vol. 14 No. 4, pp. 532-50 Flint, D. J., Woodruff, R. B., and Gardial, S. F. (2002), “Exploring the customer value change phenomenon in a Business-to-business context” Journal of Marketing, Vol. 66 (October), pp. 102-17. Frei, F. (2006), "Breaking the trade-off between efficiency and service." Harvard Business Review, November, pp. 92-101. Godsiff, P. and Maull, R. (2009), “Operationalising variety”, paper presented at QUIS11 The Services Conference, 11-14 June, Wolfsburg, Germany. Goedkoop, M., van Halen, C., Te Riele, H. and Rommens, P. (1999), Product Service Systems: Ecological and Economic Basics, The Hague: Netherlands. Hobday, M. (1998), “Product complexity, innovation and industrial organisation”, Research Policy, Vol. 26, pp. 689–710. Hobday, M., Rush, H. and Tidd, J. (2000), “Innovation in Complex Products and Systems” Research Policy, Vol. 29 No. 7-8, pp. 793-804. STOP Hockley, C. J., Smith, J. C. and Lacey, L. (2010), “Contracting for Availability and Capability in the Defence Environment” in Complex Engineering Service Systems: Concepts & Research, forthcoming by Springer Howard, M. B. and Caldwell, N. D. (2011), “Introduction”, Caldwell, N.D. and Howard, M.B. (Eds), Procuring Complex Performance: Studies of Innovation in Product Service Management, Routledge/Taylor & Francis, New York, NY Johnstone, S., Dainty, A. and Wilkinson, A. (2009), "Integrating products and services through life: an aerospace experience", International Journal of Operations & Production Management, Vol. 29 No. 5, pp.520 – 538. Lamvik, T. (2001), "Improving environmental performance of industrial products through product service systems", Norwegian University of Science and Technology. Lapierre, J., Tran-Khanh, A. and Shelling, J (2008), “Antecedents of Customers' Desired Value Change in a Business-to- Business Context: Theoretical Model and Empirical Assessment”, Services Marketing Quarterly, Vol. 29 No. 3, pp. 114-148. Lapierre, J. (1997), “What does value mean in business-to-business professional services?” International Journal of Service Industry Management, Vol. 8 No. 5, pp. 377-397. Lemon, K. N., Barnett, T. W. and Winer, R. S. (2002), “Dynamic customer relationship management: Incorporating future considerations into the service retention decision”, Journal of Marketing, Vol. 66 No. 1, pp. 1−14. Macdonald, E. K., Martinez, V. and Wilson, H. (2009), “Towards the Assessment of the Value-in-Use of Product-Service Systems: A Review” in Conference proceedings, Performance Measurement: Theory and Practice, University of Otago, New Zealand Manzini, E. and Vezzoli, C. (2003), "A strategic design approach to develop sustainable product service systems: examples taken from the environmentally friendly innovation' Italian prize", Journal of Cleaner Production, Vol. 11 No. 8, pp. 851-57. Matthyssens, P. and Vandenbempt, K. (1998), “Creating competitive advantage in industrial services”, Journal of Industrial and Business Marketing, Vol. 13 No. 4/5, pp. 339- 355. Meredith, J. (1998), "Building operations management theory through case and field research", Journal of Operations Management, Vol. 16 No. 4, pp. 441-454. Miles, M. B. and Huberman, A. M. (1994), Qualitative data analysis: An expanded sourcebook (2nd ed.), Thousand Oaks, CA: Sage Publications. Mills, J., Neaga, E., Parry, G. and Crute, V. (2008), “Toward a framework to assist servitization strategy implementation”, in Proceedings of the POMS 19th Annual Conference, May 9-12, La Jolla, California Mont, O. (2001), "Introducing and developing a Product-Service System (PSS) concept in Sweden", Lund University, Sweden: The International Institute for Industrial Environmental Economics. Morelli, N. (2002), “Designing Product/Service Systems: A Methodological Exploration”, Design Issues, Vol. 18, pp. 3-17. Neely, A., McFarlane, D. and Visnjic, I. (2011), “Complex Service Systems – Identifying Drivers Characteristics and Success Factors”, In 18th International Annual EurOMA Conference, Exploring Interfaces, 3-6 July 2011, Cambridge, UK, Cambridge University Press, Cambridge, UK, pp. 74. Neely, A. (2008), “Exploring the financial consequences of the Servitization of manufacturing”, Operations Management Research. Vol.1 No. 2 (December), pp. 103-118. Ng, I & Briscoe, G (2012) Value, Variety and Viability: New Business Models for Co- Creation in Outcome-based Contracts. International Journal of Service Science, Management, Engineering, and Technology, forthcoming. Interim location: WMG Service Systems Research Group Working Paper Series, paper number 06/12, ISSN 2049-4297. http://bit.ly/ywkNrO Ng I, Guo L, Ding Y (2012) Continuing Use of Information Technology as Value Co-creation: The Role of Contextual Variety and Means Drivenness. WMG Service Systems Research Group Working Paper Series, paper number 07/12, ISSN 2049-4297. http://bit.ly/yYzJ9X Ng, I and Smith L. (2012) An Integrative Framework of Value. Review of Marketing Research. Forthcoming. Interim Location: WMG Service Systems Research Group Working Paper Series, paper number 03/12, ISSN 2049-4297 Oliva, R. and Kallenberg, R. (2003), “Managing the transition from products to services” International Journal of Service Industry Management, Vol. 14 No. 2, pp. 160-172. Palmatier, R. W. (2008), “Interfirm Relational Drivers of Customer Value”, Journal of Marketing, Vol. 72 (July), pp. 76–89. Parnaby, J. (1988), “A systems approach to the implementation of JIT methodologies in Lucas Industries”, International Journal of Production Research, Vol. 26 No. 3, pp. 483- 492. Patton, M. Q. (1990), Qualitative evaluation and research methods, Thousand Oaks, CA: Sage Publications. Patton, M.Q. (2002), Qualitative Evaluation and Research Methods, Sage, Thousand Oaks, CA. Pawar, K. S., Beltagui, A. and Riedel, J.C.K.H. (2009), "The PSO triangle: designing product, service and organisation to create value", International Journal of Operations & Production Management, Vol. 29 No. 5, pp.468 – 493. Payne, A., Storbacka, K. and Frow, P. (2008), “Managing the co-creation of value”, Academy of Marketing Science, Vol. 36 No. 1, pp. 83–96. Rolfe, H. (1990), “In the name of progress? Skill and attitudes towards technological change”, New Technology, Work and Employment, Vol. 5 No. 2, pp. 107-121. Roth, A. V., Schroeder, R. G., Huang, X. and Kristal, M. M. (2008), Handbook of metrics for research in operations management: Multi-item measurement scales and objective items, Thousand Oaks, CA: Sage. Salonen, A. (2011), “Service transition strategies of industrial manufacturers”, Industrial Marketing Management, forthcoming. Strauss, A. and Corbin, J. (1990), Basics of Qualitative Research: Grounded Theory Procedures and Techniques, Beverly Hills, CA: Sage Tuli, K. R., Kohli, A. K. and Bharadwaj, S. G. (2007), Rethinking Customer Solutions: From Product Bundles to Relational Processes. Journal of Marketing: Vol. 71, No. 3, pp. 1-17. Tukker, A. and Tischner, U. (2006), New Business for Old Europe: Product-Service Development, Competitiveness and Sustainability, Sheffield, Greenleaf Publishing Tukker, A. (2004), Eight types of product-service system: Eight ways to sustainability? Experiences from Suspronet, Business Strategy and the Environment, Vol. 13, pp. 246–260 Turunen, T. (2011), “Organizing Servitization: A contingency perspective”, in 18th International Annual EurOMA Conference, Exploring Interfaces, 3-6 July 2011, Cambridge, UK, Cambridge University Press, Cambridge, UK, pp. 114. Ulaga, W. and Reinartz, W. J. (2011), “Hybrid Offerings: How Manufacturing Firms Combine Goods and Services Successfully”, Journal of Marketing, forthcoming. Vandermerwe, S. and Rada, J. (1988), “Servitization of business: Adding value by adding services”, European Management Journal, Vol. 6 No. 4, pp. 314-324. Vargo, S. L. and Lusch, R. F. (2004), “Evolving to a new dominant logic in Marketing,” Journal of Marketing, Vol. 68, pp. 1-17. Vargo, S. L. and Lusch, R. F. (2006), “Service-dominant logic: What it is, what it is not, what it might be”, In R. F. Lusch, & S. L. Vargo (Eds.), Toward a service dominant logic: Dialog, debate, and directions, Armonk, New York: M.E. Sharpe. Vargo, S. L. and Lusch, R. F. (2008), "Service-dominant logic: continuing the evolution," Journal of the Academy of Marketing Science, Vol. 36 No. 1, pp. 1-10. Wise, R. and Baumgartner, P. (1999), “Go Downstream: the New Profit Imperative in Manufacturing”, Harvard Business Review, September-October, pp. 133-141. Woodruff, R. B. (1997), “Customer Value: The Next Source of Competitive Advantage”, Journal of the Academy of Marketing Science, Vol. 25 No. 2, pp. 139–153. Woodruff, R. B. and Flint, D. J. (2003), “Research on Business-to-Business Customer Value and Satisfaction”, in Professor Arch Woodside (ed.) Evaluating Marketing Actions and Outcomes (Advances in Business Marketing and Purchasing, Volume 12), Emerald Group Publishing Limited, pp. 515-547. Woodward, J. (1965), Industrial Organisations: Theory and Practice, 2nd edn. Oxford University Press: Oxford. Yin, R. K. (1984), Case Study Research, Applied Social Research Methods Series, Sage Publications: Beverly Hills, CA Zaring, O. (2001), "Creating Eco-Efficient Producer Services: Report of an EU project." Gothenburg: Gothenburg Research Institute.|
Actions (login required)