Production
https://prod.org.br/article/doi/10.1590/0103-6513.20220087
Production
Systematic Review

From servitization to deservitization: a literature review on the aspects related to a deservitization movement in manufacturing firms

Juliane de Freitas Battisti; Paulo Augusto Cauchick-Miguel; Thayla Tavares Sousa-Zomer

Downloads: 1
Views: 400

Abstract

Paper aims: This study identified the main aspects related to deservitization in manufacturing firms, a process involving the dilution of services after their integration into companies’ business models.

Originality: The deservitization process has been identified as a movement among manufacturing companies, but so far, there is limited understanding of its characteristics. The paper contributes to the existing literature by identifying the main aspects related to the dilution of once-added services by manufacturing firms.

Research method: A literature review was conducted. A content analysis of the selected papers (89 publications) was carried out to identify the main challenges discussed in the servitization literature as issues leading to deservitization.

Main findings: The explanations for manufacturing firms failing in the transition to servitization and consequently taking the deservitization path discussed in the literature are related to changes in the organizational structure, new capabilities, modification of the business model and strategy, and difficulties in the interaction between supplier and customer.

Implications for theory and practice: Deservitization is a complex phenomenon, and little is known about it, especially when compared to the existing body of knowledge on servitization. The paper thus extends the knowledge on the conditions leading to deservitization in manufacturing firms.

Keywords

Deservitization, Servitization, Diffusion of services, Market strategy, Reverse servitization

References

Alghisi, A., & Saccani, N. (2015). Internal and external alignment in the servitization journey - overcoming the challenges. Production Planning and Control, 26(14-15), 1219-1232. http://dx.doi.org/10.1080/09537287.2015.1033496.

Ambroise, L., Prim-Allaz, I., & Teyssier, C. (2018). Financial performance of servitized manufacturing firms: a configuration issue between servitization strategies and customer-oriented organizational design. Industrial Marketing Management, 71, 54-68. http://dx.doi.org/10.1016/j.indmarman.2017.11.007.

Aminoff, A., & Hakanen, T. (2018). Implications of product-centric servitization for global distribution channels of manufacturing companies. International Journal of Physical Distribution & Logistics Management, 48(10), 1020-1038. http://dx.doi.org/10.1108/IJPDLM-06-2018-0231.

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., & Wilson, H.. (2007). State-of-the-art product-service systems. Proceedings of the Institution of Mechanical Engineers. Part B, Journal of Engineering Manufacture, 221(10), 1543-1552. http://dx.doi.org/10.1243/09544054JEM858.

Baines, T. S., Lightfoot, H. W., Benedettini, O., & Kay, J. M. (2009a). The servitization of manufacturing: a review of literature and reflection on future challenges. Journal of Manufacturing Technology Management, 20(5), 547-567. http://dx.doi.org/10.1108/17410380910960984.

Baines, T., Bigdeli, A. Z., Bustinza, O. F., Shi, V. G., Baldwin, J., & Ridgway, K (2009b). Servitized manufacture: practical challenges of delivering integrated products and services. Proceedings of the Institution of Mechanical Engineers. Part B, Journal of Engineering Manufacture, 223(9), 1207-1215. http://dx.doi.org/10.1243/09544054JEM1552.

Baines, T., Bigdeli, A. Z., Bustinza, O. F., Shi, V. G., Baldwin, J., & Ridgway, K. (2017). Servitization: revisiting the state of the art and research priorities. International Journal of Operations & Production Management, 37(2), 256-278. http://dx.doi.org/10.1108/IJOPM-06-2015-0312.

Baines, T., Bigdeli, A. Z., Sousa, R., & Schroeder, A. (2020). Framing the servitization transformation process: A model to understand and facilitate the servitization journey. International Journal of Production Economics, 221, 107463. http://dx.doi.org/10.1016/j.ijpe.2019.07.036.

Benedettini, O., Neely, A., & Swink, M. (2015). Why do servitized firms fail? A risk-based explanation. International Journal of Operations & Production Management, 35(6), 946-979. http://dx.doi.org/10.1108/IJOPM-02-2014-0052.

Benedettini, O., Swink, M., & Neely, A. (2017). Examining the influence of service additions on manufacturing firms’ bankruptcy likelihood. Industrial Marketing Management, 60, 112-125. http://dx.doi.org/10.1016/j.indmarman.2016.04.011.

Benyoussef Zghidi, A. B., & Zaiem, I. (2017). Service orientation as a strategic marketing tool: the moderating effect of the business sector. Competitiveness Review, 27(1), 40-61. http://dx.doi.org/10.1108/CR-02-2015-0012.

Brax, S. (2005). A manufacturer becoming service provider: challenges and a paradox. Managing Service Quality, 15(2), 142-155. http://dx.doi.org/10.1108/09604520510585334.

Burton, J., Story, V. M., Raddats, C., & Zolkiewski, J. (2017). Overcoming the challenges that hinder new service development by manufacturers with diverse services strategies. International Journal of Production Economics, 192, 29-39. http://dx.doi.org/10.1016/j.ijpe.2017.01.013.

Bustinza, O. F., Bigdeli, A. Z., Baines, T., & Elliot, C. (2015). Servitization and competitive advantage: the importance of organizational structure and value chain position. Research Technology Management, 58(5), 53-60. http://dx.doi.org/10.5437/08956308X5805354.

Bustinza, O. F., Vendrell-Herrero, F., & Baines, T. (2017). Service implementation in manufacturing: an organizational transformation perspective. International Journal of Production Economics, 192, 1-8. http://dx.doi.org/10.1016/j.ijpe.2017.08.017.

Colm, L., Ordanini, A., & Bornemann, T. (2020). Dynamic Governance Matching in Solution Development. Journal of Marketing, 84(1), 105-124. http://dx.doi.org/10.1177/0022242919879420.

Confente, I., Buratti, A., & Russo, I. (2015). The role of servitization for small firms: Drivers versus barriers. International Journal of Entrepreneurship and Small Business, 26(3), 312-331. http://dx.doi.org/10.1504/IJESB.2015.072394.

Coreynen, W., Matthyssens, P., De Rijck, R., & Dewit, I. (2018). Internal levers for servitization: how product-oriented manufacturers can upscale product-service systems. International Journal of Production Research, 56(6), 2184-2198. http://dx.doi.org/10.1080/00207543.2017.1343504.

Cui, L., Su, S. I. I., Feng, Y., & Hertz, S. (2019). Causal or effectual? Dynamics of decision-making logics in servitization. Industrial Marketing Management, 82, 15-26. http://dx.doi.org/10.1016/j.indmarman.2019.03.013.

Cusumano, M. A., Kahl, S. J., & Suarez, F. F. (2015). Services, industry evolution, and the competitive strategies of product firms. Strategic Management Journal, 36(4), 528-575. http://dx.doi.org/10.1002/smj.2235.

Dahmani, S., Boucher, X., Peillon, S., & Besombes, B. (2016). A reliability diagnosis to support servitization decision-making process. Journal of Manufacturing Technology Management, 27(4), 502-534. http://dx.doi.org/10.1108/JMTM-06-2015-0044.

Dmitrijeva, J., Schroeder, A., Ziaee Bigdeli, A., & Baines, T. (2022). Paradoxes in servitization: A processual perspective. Industrial Marketing Management, 101, 141-152. http://dx.doi.org/10.1016/j.indmarman.2021.12.007.

Dmitrijeva, J., Schroeder, A., Ziaee Bigdeli, A., & Baines, T. (2020). Context matters: how internal and external factors impact servitization. Production Planning and Control, 31(13), 1077-1097. http://dx.doi.org/10.1080/09537287.2019.1699195.

Durugbo, C., & Erkoyuncu, J. A. (2016). Mitigating uncertainty for industrial service operations: a multi-case study. International Journal of Operations & Production Management, 36(5), 532-571. http://dx.doi.org/10.1108/IJOPM-04-2015-0196.

Eggert, A., Hogreve, J., Ulaga, W., & Muenkhoff, E. (2014). Revenue and profit implications of industrial service strategies. Journal of Service Research, 17(1), 23-39. http://dx.doi.org/10.1177/1094670513485823.

Eggert, A., Thiesbrummel, C., & Deutscher, C. (2015). Heading for new shores: do service and hybrid innovations outperform product innovations in industrial companies? Industrial Marketing Management, 45(1), 173-183. http://dx.doi.org/10.1016/j.indmarman.2015.02.013.

Elo, S., Kääriäinen, M., Kanste, O., Pölkki, T., Utriainen, K., & Kyngäs, H. (2014). Qualitative content analysis: A focus on trustworthiness. SAGE Open, 4(1), 1-10. http://dx.doi.org/10.1177/2158244014522633.

Favoretto, C., Mendes, G. H. S., Oliveira, M. G., Cauchick-Miguel, P. A., & Coreynen, W. (2022). From servitization to digital servitization: How digitalization transforms companies’ transition towards services. Industrial Marketing Management, 102, 104-121. http://dx.doi.org/10.1016/j.indmarman.2022.01.003.

Finne, M., Brax, S., & Holmström, J. (2013). Reversed servitization paths: a case analysis of two manufacturers. Service Business, 7(4), 513-537. http://dx.doi.org/10.1007/s11628-013-0182-1.

Fischer, T., Gebauer, H., Gregory, M., Ren, G., & Fleisch, E. (2010). Exploitation or exploration in service business development? Insights from a dynamic capabilities perspective. Journal of Service Management, 21(5), 591-624. http://dx.doi.org/10.1108/09564231011079066.

Forkmann, S., Henneberg, S. C., Witell, L., & Kindström, D. (2017). Driver configurations for successful service infusion. Journal of Service Research, 20(3), 275-291. http://dx.doi.org/10.1177/1094670517706160.

Gebauer, H., Fleisch, E., & Friedli, T. (2005). Overcoming the service paradox in manufacturing companies. European Management Journal, 23(1), 14-26. http://dx.doi.org/10.1016/j.emj.2004.12.006.

Gomes, E., Lehman, D. W., Vendrell-Herrero, F., & Bustinza, O. F. (2021). A history-based framework of servitization and deservitization. International Journal of Operations & Production Management, 41(5), 723-745. http://dx.doi.org/10.1108/IJOPM-08-2020-0528.

Green, M. H., Davies, P., & Ng, I. C. L. (2017). Two strands of servitization: a thematic analysis of traditional and customer co-created servitization and future research directions. International Journal of Production Economics, 192, 40-53. http://dx.doi.org/10.1016/j.ijpe.2017.01.009.

Hou, J., & Neely, A. (2013). Barriers of servitization: results of a systematic literature review. In Proceedings of the Spring Servitization Conference (SSC 2013): Servitization in the Multi-Organisation Enterprise (pp. 189-195), Birmingham, UK: The Advanced Services Group.

Iriarte, I., Hoveskog, M., Alberdi, A., Anaya, M., & Mazmela, M. (2019). To be or not to be: the servitization dilemma and the role of Design. The Design Journal, 22(1), 37-49. http://dx.doi.org/10.1080/14606925.2019.1595849.

Jovanovic, M., Engwall, M., & Jerbrant, A. (2016). Matching service offerings and product operations is a key to servitization success. Resources and Technology, 59(3), 29-36.

Kastalli, I. V., & van Looy, B. (2013). Servitization: disentangling the impact of service business model innovation on manufacturing firm performance. Journal of Operations Management, 31(4), 169-180. http://dx.doi.org/10.1016/j.jom.2013.02.001.

Kindström, D. (2010). Towards a service-based business model: key aspects for future competitive advantage. European Management Journal, 28(6), 479-490. http://dx.doi.org/10.1016/j.emj.2010.07.002.

Kindström, D., & Kowalkowski, C. (2014). Service innovation in product-centric firms: a multidimensional business model perspective. Journal of Business and Industrial Marketing, 28(2), 96-111. http://dx.doi.org/10.1108/JBIM-08-2013-0165.

Kindström, D., Ottosson, M., & Thollander, P. (2017). Driving forces for and barriers to providing energy services-a study of local and regional energy companies in Sweden. Energy Efficiency, 10(1), 21-39. http://dx.doi.org/10.1007/s12053-016-9437-8.

Kohtamäki, M., Einola, S., & Rabetino, R. (2020). Exploring servitization through the paradox lens: coping practices in servitization. International Journal of Production Economics, 226, 107619. http://dx.doi.org/10.1016/j.ijpe.2020.107619.

Kohtamäki, M., Rabetino, R., & Einola, S. (2018). Paradoxes in servitization. In M. Kohtamäki, T. Baines, R. Rabetino & A. Bigdeli (Eds.), Practices and tools for servitization (pp. 185-199). Cham: Palgrave Macmillan. http://dx.doi.org/10.1007/978-3-319-76517-4_10.

Kowalkowski, C., Gebauer, H., & Oliva, R. (2017a). Service growth in product firms: past, present, and future. Industrial Marketing Management, 60, 82-88. http://dx.doi.org/10.1016/j.indmarman.2016.10.015.

Kowalkowski, C., Gebauer, H., Kamp, B., & Parry, G. (2017b). Servitization and deservitization: overview, concepts, and definitions. Industrial Marketing Management, 60, 4-10. http://dx.doi.org/10.1016/j.indmarman.2016.12.007.

Kowalkowski, C., Windahl, C., Kindström, D., & Gebauer, H. (2015). What service transition? Rethinking established assumptions about manufacturers’ service-led growth strategies. Industrial Marketing Management, 45, 59-69. http://dx.doi.org/10.1016/j.indmarman.2015.02.016.

Kreye, M. E. (2017). Can you put too much on your plate? Uncertainty exposure in servitized triads. International Journal of Operations & Production Management, 37(12), 1722-1740. http://dx.doi.org/10.1108/IJOPM-06-2016-0357.

Kryvinska, N., Kaczor, S., & Strauss, C. (2020). Enterprises’ servitization in the first decade: retrospective analysis of back-end and front-end challenges. Applied Sciences, 10(8), 2957. http://dx.doi.org/10.3390/app10082957.

Lammi, M. (2017). Emotional service experience toolkit for servitization. The Design Journal, 20(1), 2667-2678. http://dx.doi.org/10.1080/14606925.2017.1352778.

Li, F., & Chen, X. (2019). The role of supplier collaboration and risk management capabilities in managing product complexity. Operations Management Research: Advancing Practice Through Research, 12(3-4), 146-158. http://dx.doi.org/10.1007/s12063-019-00144-w.

Luoto, S., Brax, S. A., & Kohtamäki, M. (2017). Critical meta-analysis of servitization research: constructing a model-narrative to reveal paradigmatic assumptions. Industrial Marketing Management, 60, 89-100. http://dx.doi.org/10.1016/j.indmarman.2016.04.008.

Lütjen, H., Tietze, F., & Schultz, C. (2017). Service transitions of product-centric firms: an explorative study of service transition stages and barriers in Germany’s energy market. International Journal of Production Economics, 192, 106-119. http://dx.doi.org/10.1016/j.ijpe.2017.03.021.

Malleret, V. (2006). Value creation through service offers. European Management Journal, 24(1), 106-116. http://dx.doi.org/10.1016/j.emj.2005.12.012.

Martin, P. C. G., Schroeder, A., & Bigdeli, A. Z. (2019). The value architecture of servitization: expanding the research scope. Journal of Business Research, 104, 438-449. http://dx.doi.org/10.1016/j.jbusres.2019.04.010.

Martinez, V., Bastl, M., Kingston, J., & Evans, S. (2010). Challenges in transforming manufacturing organizations into product-service providers. Journal of Manufacturing Technology Management, 21(4), 449-469. http://dx.doi.org/10.1108/17410381011046571.

Martinez, V., Neely, A., Velu, C., Leinster-Evans, S., & Bisessar, D. (2017). Exploring the journey to services. International Journal of Production Economics, 192, 66-80. http://dx.doi.org/10.1016/j.ijpe.2016.12.030.

Mathieu, V. (2001). Service strategies within the manufacturing sector: benefits, costs, and partnership. International Journal of Service Industry Management, 12(5), 451-475. http://dx.doi.org/10.1108/EUM0000000006093.

Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: an expanded sourcebook. London: Sage.

Neely, A. (2008). Exploring the financial consequences of the servitization of manufacturing. Operations Management Research: Advancing Practice Through Research, 1(2), 103-118. http://dx.doi.org/10.1007/s12063-009-0015-5.

Nenonen, S., Ahvenniemi, O., & Martinsuo, M. (2014). Image risks of servitization in collaborative service deliveries. Service Industries Journal, 34(16), 1307-1329. http://dx.doi.org/10.1080/02642069.2014.942657.

Nudurupati, S. S., Lascelles, D., Wright, G., & Yip, N. (2016). Eight challenges of servitisation for the configuration, measurement, and management of organisations. Journal of Service Theory and Practice, 26(6), 745-763. http://dx.doi.org/10.1108/JSTP-02-2015-0045.

Prester, J., & Peles, B. (2017). Trends in Servitization: evidence from Croatia. Ekonomski Pregled, 68(5), 507-540.

Rabetino, R., Kohtamäki, M., & Gebauer, H. (2017). Strategy map of servitization. International Journal of Production Economics, 192, 144-156. http://dx.doi.org/10.1016/j.ijpe.2016.11.004.

Raja, J. Z., & Frandsen, T. (2017). Exploring servitization in China: challenges of aligning motivation, opportunity, and ability in coordinating an external service partner network. International Journal of Operations & Production Management, 37(11), 1654-1682. http://dx.doi.org/10.1108/IJOPM-12-2015-0755.

Raja, J. Z., Frandsen, T., & Mouritsen, J. (2017). Exploring the managerial dilemmas encountered by advanced analytical equipment providers in developing service-led growth strategies. International Journal of Production Economics, 192, 120-132. http://dx.doi.org/10.1016/j.ijpe.2016.12.034.

Rakesh, V. T., & Menon, P. (2022). Desafio de preços na servitização: a servitização pode melhorar o sustento ecológico? World Review of Entrepreneurship, Management and Sustainable Development, 18(1-2), 137-155. http://dx.doi.org/10.1504/WREMSD.2022.120785.

Reim, W., Parida, V., & Örtqvist, D. (2015). Product-Service Systems (PSS) business models and tactics-a systematic literature review. Journal of Cleaner Production, 97, 61-75. https://doi.org/10.1016/j.jclepro.2014.07.003.

Reim, W., Sjödin, D. R., & Parida, V. (2019). Servitization of global service network actors - a contingency framework for matching challenges and strategies in service transition. Journal of Business Research, 104, 461-471. http://dx.doi.org/10.1016/j.jbusres.2019.01.032.

Sjödin, D., Parida, V., Kohtam¨aki, M., & Wincent, J. (2020). An agile co-creation process for digital servitization: a micro-service innovation approach. Journal of Business Research, 112, 478-491. http://dx.doi.org/10.1016/j.jbusres.2020.01.009.

Spohrer, J. (2017). IBM’s service journey: a summary sketch. Industrial Marketing Management, 60, 167-172. http://dx.doi.org/10.1016/j.indmarman.2016.09.005.

Szász, L., Demeter, K., Boer, H., & Cheng, Y. (2017). Servitization of manufacturing: the effect of economic context. Journal of Manufacturing Technology Management, 28(8), 1011-1034. http://dx.doi.org/10.1108/JMTM-11-2016-0166.

Toth, Z., Kowalkowski, C., Sklyar, A., Sörhammar, D., Tronvoll, B., & Wirths, O. (2020). A paradox theory approach to tensions in digital servitization: the case of the aerospace and maritime industries. In Proceedings of the Spring Servitization Conference - Advanced Services for Sustainability and Growth (pp. 96-105). Birmingham, UK: The Advanced Services Group.

Tranfield, D., Denyer, D., & Smart, P. (2003). Towards a methodology for developing evidence-informed management knowledge by means of systematic review. British Journal of Management, 14(3), 207-222. http://dx.doi.org/10.1111/1467-8551.00375.

Valtakoski, A. (2017). Explaining servitization failure and deservitization: a knowledge-based perspective. Industrial Marketing Management, 60, 138-150. http://dx.doi.org/10.1016/j.indmarman.2016.04.009.

Vandermerwe, S., & Rada, J. (1988). Servitization of business: adding value by adding services. European Management Journal, 6(4), 314-324. http://dx.doi.org/10.1016/0263-2373(88)90033-3.

Visnjic, I., Wiengarten, F., & Neely, A. (2016). Only the brave: product innovation, service business model innovation, and their impact on performance. Journal of Product Innovation Management, 33(1), 36-52. http://dx.doi.org/10.1111/jpim.12254.

Wang, Q., Zhao, X., & Voss, C. (2016). Customer orientation and innovation: a comparative study of manufacturing and service firms. International Journal of Production Economics, 171, 221-230. http://dx.doi.org/10.1016/j.ijpe.2015.08.029.

Yan, K., Cheng, T. E., Li, G., & Wei, Z. (2019). Overcoming the service paradox by leveraging the organizational design and cultural factors: a combined configuration and contingency approach. IEEE Transactions on Engineering Management, 68(2), 498-512. http://dx.doi.org/10.1109/TEM.2019.2911105.

Yin, R. (2003). Case study research: design and methods (3rd ed.). Thousand Oaks: Sage.

Zhang, W., & Banerji, S. (2017). Challenges of servitization: a systematic literature review. Industrial Marketing Management, 65, 217-227. http://dx.doi.org/10.1016/j.indmarman.2017.06.003.

Zhou, D., Yan, T., Zhao, L., & Guo, J. (2020). Performance implications of servitization: does a Manufacturer's service supply network matter?. International Journal of Production Economics, 219, 31-42. https://doi.org/10.1016/j.ijpe.2019.05.019.

Zhu, X., & Zolkiewski, J. (2015). Exploring service failure in a business-to-business context. Journal of Services Marketing, 29(50), 367-379. http://dx.doi.org/10.1108/JSM-02-2014-0055.
 


Submitted date:
07/21/2022

Accepted date:
02/20/2023

6422ce45a9539578da77b014 production Articles
Links & Downloads

Production

Share this page
Page Sections