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Supplier Relations in the Early Phases of Service Business Transformation

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review


Original languageEnglish
Title of host publicationStrategic Change towards Future Industrial Service Business
EditorsMiia Martinsuo, Olga Perminova-Harikoski, Taija Turunen
PublisherTampere University of Technology
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


Manufacturing companies are tending more and more to provide services instead of products alone. This transformation may require changing the business logic of the company, as well as renewing supplier relations. Transformation requirements and challenges have previously been studied among manufacturers in fairly advanced and successful service businesses. Less is known about developing supplier relations relative to service businesses in high-volume, low-complexity manufacturing. This paper explores the requirements and challenges of supplier relations in the early phases of service business transformation through a qualitative multiple-case study. This
study focuses on high-volume, low-complexity manufacturing, and shows that transforming a business into a more service-oriented business requires integrating the manufacturing company with suppliers to ensure service quality, fulfil service promises, and maintain a good company image. Establishing new partnerships as well as developing current ones, involves challenges with image, responsibility and readiness for change that need to be taken
into account in order for the firm to successfully transform into a service business.

Publication forum classification

Field of science, Statistics Finland