Servitization and competitive advantage: the importance of organizational structure and value chain position

Oscar F. Bustinza, Ali Ziaee Bigdeli, Timothy S Baines, Cindy Elliot

Research output: Contribution to journalArticle

Abstract

Servitization represents a business-model change and organizational transformation from selling goods to selling an integrated combination of goods and services. Competitive advantage is one outcome of this shift. During servitization, companies follow stages to realize services as an opportunity to differentiate from goods and achieve higher customer satisfaction. This study analyzes this transition from base, intermediate, and advanced services by presenting results from 102 senior executives in multinational companies. Our results suggest increasing interest in service-led strategies in manufacturing companies. The results also show that increasing differentiation and high customer satisfaction are fundamental to achieving competitive advantage and superior performance with services. The analysis also indicates the importance of a company’s position in the value chain and the organizational structure it selects to support services in successful servitization.
Original languageEnglish
Pages (from-to)53-60
Number of pages8
JournalResearch Technology Management
Volume58
Issue number5
DOIs
Publication statusPublished - 1 Sep 2015

Bibliographical note

This is an Accepted Manuscript of an article published by Taylor & Francis in Research-Technology Management on 23/12/15, available online: http://www.tandfonline.com/10.5437/08956308X5805354

Keywords

  • servitization strategies
  • value chain
  • organizational structure

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