Transformation of a small-to-medium-sized enterprise to a multi-organisation product-service solution provider

Ben Clegg*, Paul Little, Steve Govette, Joel Logue

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

This paper aims to: (1) précis the extant literature on servitization and enterprization transformations, focusing on the role of information technology (IT) and information systems (IS) and their inter-relationships; (2) illustrate these interrelationships by showing how a small-to-medium-sized enterprise (SME) can move from being a predominantly independent SME, delivering only products, to become part of a multi-organisation enterprise able to deliver product-service solutions; and (3) provide generic learning by proposing a new integrated business transformation model. The methodology used is abductive action research. A literature review is conducted to provide academically grounded themes to inform and interpret practical actions. An empirical case study is conducted with a UK SME from the construction industry that provides empirical data to illustrate a business transformation. Inductive reasoning is used to propose a new integrated transformation model. Findings show that enterprization and servitization transformation themes are highly interdependent and co-implementable when an IT/IS focus is taken. Furthermore, these transformations can be used as part of a successful strategy for growth by an SME. A new operating structure, labelled a product-service enterprise (PSE), is proposed as part of a business transformation model to assist future deliveries of product-service solutions (PSSns). Actions and findings are based on a single empirical case abducted with academic themes. Whilst it is probable that the themes and actions have contributed towards the organization's successful growth, no absolute deterministic causality is claimed.
Original languageEnglish
Pages (from-to)81-91
JournalInternational Journal of Production Economics
Volume192
Early online date18 Jan 2017
DOIs
Publication statusPublished - 1 Oct 2017

Fingerprint

Industry
Information technology
Information systems
Small to medium-sized enterprises
Construction industry
Business transformation
Transformation model
Integrated
Interrelationship
Service economy
Literature review
Methodology
Empirical data
Technology system
Causality

Bibliographical note

© 2017, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

  • product–service system
  • servitization
  • multi-organisation enterprise
  • enterprise systems
  • enterprization
  • action research

Cite this

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title = "Transformation of a small-to-medium-sized enterprise to a multi-organisation product-service solution provider",
abstract = "This paper aims to: (1) pr{\'e}cis the extant literature on servitization and enterprization transformations, focusing on the role of information technology (IT) and information systems (IS) and their inter-relationships; (2) illustrate these interrelationships by showing how a small-to-medium-sized enterprise (SME) can move from being a predominantly independent SME, delivering only products, to become part of a multi-organisation enterprise able to deliver product-service solutions; and (3) provide generic learning by proposing a new integrated business transformation model. The methodology used is abductive action research. A literature review is conducted to provide academically grounded themes to inform and interpret practical actions. An empirical case study is conducted with a UK SME from the construction industry that provides empirical data to illustrate a business transformation. Inductive reasoning is used to propose a new integrated transformation model. Findings show that enterprization and servitization transformation themes are highly interdependent and co-implementable when an IT/IS focus is taken. Furthermore, these transformations can be used as part of a successful strategy for growth by an SME. A new operating structure, labelled a product-service enterprise (PSE), is proposed as part of a business transformation model to assist future deliveries of product-service solutions (PSSns). Actions and findings are based on a single empirical case abducted with academic themes. Whilst it is probable that the themes and actions have contributed towards the organization's successful growth, no absolute deterministic causality is claimed.",
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Transformation of a small-to-medium-sized enterprise to a multi-organisation product-service solution provider. / Clegg, Ben; Little, Paul; Govette, Steve; Logue, Joel.

In: International Journal of Production Economics, Vol. 192, 01.10.2017, p. 81-91.

Research output: Contribution to journalArticle

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