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Factors Preventing the Servitisation of Manufacturing Companies

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Details

Original languageEnglish
Title of host publicationStrategic Change towards Future Industrial Service Business
EditorsMiia Martinsuo, Olga Perminova-Harikoski, Taija Turunen
PublisherTampere University of Technology
Pages124-142
Number of pages19
ISBN (Electronic)978-952-15-3640-3
ISBN (Print)978-952-15-3639-7
Publication statusPublished - 2015
Publication typeA3 Part of a book or another research book

Abstract

The current literature commonly suggests that manufacturers should add services to their offerings and move towards a more servitised business. Still, there are many challenges in the process and not all companies can use a similar approach to change. This study seeks to provide information on the servitisation challenges of companies that are just starting to add services to their developed product offerings. This study was conducted as a qualitative multiple-case research and data were collected using semi-structured interviews in two interview rounds. The results of this study show that there are two types of challenges facing companies when initiating their servitisation
efforts: issues of managing the servitisation change and prerequisites for servitisation. First, general change management issues, such as the lack of management’s commitment and other simultaneous change efforts, can harm the servitisation initiative. Secondly, factors such as production maturity may act as prerequisites for the change. The contribution of this study relates to the challenges of the early phases of servitisation. The factors identified in this study are encountered in the early phases of servitisation, before many
of the factors usually covered in the existing literature become relevant.

Publication forum classification

Field of science, Statistics Finland