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Organizing for servitization : examining front- and back-end configurations
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Raja, Jawwad, Chakkol, Mehmet, Johnson, Mark and Beltagui, Ahmad (2018) Organizing for servitization : examining front- and back-end configurations. International Journal of Operations and Production Management, 38 (1). pp. 249-271. doi:10.1108/IJOPM-03-2016-0139 ISSN 0144-3577.
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Official URL: https://doi.org/10.1108/IJOPM-03-2016-0139
Abstract
Purpose: Research suggests that to structure for servitization, organizations should separate their front- and back-end units by reference to high versus low contact activities. However, these prescriptions are overly simplistic and largely based on anecdotal evidence that fails to account for context. This research addresses the need to explore the design decisions taken by organizations in support of servitization.
Design/methodology/approach: A large-scale exploratory case study was conducted, consisting of embedded cases in three divisions of a UK-based, global manufacturing firm.
Findings: Each division provided different combinations of offerings (i.e. product-, use- and result-oriented). The findings suggest that front-end / back-end configurations differ according to the offering and can exist concurrently within the same organization, challenging the assumption that different configurations within an organization are not possible. The findings show that underlying contextual factors, such as the complexity and temporality of the offering, as well as the power of the customer, have implications for the structuring of servitizing organizations.
Research limitations: This is a context-specific, qualitative case study conducted within a large original equipment manufacturer, yet the findings are analytically generalized.
Originality/value: In identifying the relevance of different design decisions in terms of customer contact, decoupling of activities and grouping of employees, the findings challenge the extant view that organizations simply split activities between the front- and back-end functions. The research identifies an additional design configuration - Integrated Project Teams – involving a dominant customer dictating organizational interfaces. This research exposes the need for further investigation into how to organize for servitization in project-based contexts.
Item Type: | Journal Article | ||||||
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Subjects: | H Social Sciences > HD Industries. Land use. Labor | ||||||
Divisions: | Faculty of Social Sciences > Warwick Business School > Operations Management Faculty of Social Sciences > Warwick Business School |
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Library of Congress Subject Headings (LCSH): | Manufacturing industries -- Case studies -- Great Britain | ||||||
Journal or Publication Title: | International Journal of Operations and Production Management | ||||||
Publisher: | Emerald Group Publishing Ltd. | ||||||
ISSN: | 0144-3577 | ||||||
Official Date: | 2 January 2018 | ||||||
Dates: |
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Volume: | 38 | ||||||
Number: | 1 | ||||||
Page Range: | pp. 249-271 | ||||||
DOI: | 10.1108/IJOPM-03-2016-0139 | ||||||
Status: | Peer Reviewed | ||||||
Publication Status: | Published | ||||||
Access rights to Published version: | Restricted or Subscription Access | ||||||
Date of first compliant deposit: | 18 September 2017 | ||||||
Date of first compliant Open Access: | 24 January 2018 |
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