Identifying tensions in the servitized value chain

Jamie Burton Jamie, Vicky Story, Judy Zolkiewski, Chris Raddats, Tim S. Baines, Dominic Medway

Research output: Contribution to journalArticle

Abstract

OVERVIEW: Servitization is recognized as an opportunity for manufacturing firms to harvest additional value by accessing new sources of revenue and expanding their reach up and down the value chain. It is a network activity, as it involves not just the servitizing firm but actors across the firm’s ecosystem. Most studies argue that servitization creates value for all network actors. However, service innovation activities may also result in the firm appropriating value from other actors, creating tensions in the network. Those tensions can undermine servitization efforts and destroy value for all participants. To avoid this outcome, firms must anticipate and manage tensions to create cooperative relationships with value chain partners. Through a series of semi-structured interviews with key actors at servitizing firms and their customers and intermediaries, we identified specific types and sources of tensions in the servitization process and explored how they might be mitigated or managed.

Original languageEnglish
Pages (from-to)38-47
Number of pages10
JournalResearch Technology Management
Volume59
Issue number5
DOIs
Publication statusPublished - 26 Aug 2016

Bibliographical note

This is an Accepted Manuscript of an article published by Taylor & Francis Group in Research-Technology Management on 26/8/2016, available online at: http://www.tandfonline.com/10.1080/08956308.2016.1208042

Keywords

  • Business model innovation
  • Service innovation
  • Servitization
  • Value chain

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