Identifying (territorial) tensions in the servitization value chain

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

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Purpose: To understand the tensions that servitization activities create between actors within networks.
Design/methodology/approach: Interviews were conducted with manufacturers, intermediaries and customers across a range of industrial sectors.
Findings: Tensions relating to two key sets of capabilities are identified: in developing or acquiring (i) operant technical expertise and (ii) operand service infrastructure. The former tension concerns whom knowledge is co-created with and where expertise resides. The latter involves a territorial investment component; firms developing strategies to acquire greater access to, or ownership of, infrastructures closer to customers. Developing and acquiring these capabilities is a strategic decision on the part of managers of servitizing firms, in order to gain recognized power and control in a particular territory. Originality/value: This paper explores how firms’ servitization activities involve value appropriation (from the rest of the network), contrasting with the narrative norm for servitization: that it creates additional value. There is a need to understand the tensions that servitization activities create within networks. Some firms may be able to improve servitization performance through co-operation rather than competition, generating co-opetitive relationships. Others may need to become much more aggressive, if they are to take a greater share of the ‘value’ from the value chain.
Original languageEnglish
Title of host publicationServitization : the theory and impact
Subtitle of host publicationproceedings of the spring servitization conference 18 – 19 May 2015, SSC2015
EditorsTim Baines, David K. Harrison
Place of PublicationBirmingham (UK)
PublisherAston University
Pages243-250
Number of pages8
ISBN (Print)978-1-85449-492-4
Publication statusPublished - May 2015
EventSpring Servitization Conference SSC2015 - Birmingham, United Kingdom
Duration: 18 May 201519 May 2015

Conference

ConferenceSpring Servitization Conference SSC2015
CountryUnited Kingdom
CityBirmingham
Period18/05/1519/05/15

Bibliographical note

© Aston Business School

Keywords

  • servitization infrastructure
  • capabilities
  • territory

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  • Research Output

    • 2 Conference contribution
    • 1 Scholarly edition

    Digital resources and their role in advanced service provision: a VRIN analysis

    Schroeder, A. & Kotlarsky, J., May 2015, Servitization : the theory and impact: proceedings of the spring servitization conference 18 – 19 May 2015, SSC2015. Baines, T. & Harrison, D. K. (eds.). Birmingham (UK): Aston University, p. 67-74 8 p.

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Open Access
    File
  • Servitization : the theory and impact: proceedings of the spring servitization conference 18 – 19 May 2015, SSC2015

    Baines, T. (ed.) & Harrison, D. K. (ed.), May 2015, Birmingham (UK): Aston University. 312 p.

    Research output: Book/ReportScholarly edition

    Open Access
    File

    “This beer is off!”: building a dialogue game for servitization

    Uren, V. & Petridis, P., May 2015, Servitization : the theory and impact: proceedings of the spring servitization conference 18 – 19 May 2015, SSC2015. Baines, T. & Harrison, D. K. (eds.). Birmingham (UK): Aston University, p. 91-98 8 p.

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    Open Access
    File
  • Cite this

    Burton, J., Story, V., Zolkiewski, J., Raddats, C., Baines, T. S., & Medway, D. (2015). Identifying (territorial) tensions in the servitization value chain. In T. Baines, & D. K. Harrison (Eds.), Servitization : the theory and impact: proceedings of the spring servitization conference 18 – 19 May 2015, SSC2015 (pp. 243-250). Aston University.