The relevance of service in European manufacturing industries

Gunter Lay · Giacomo Copani · Angela Jäger · Sabine Biege

189 citations0/0 files storedJournal of service management

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Service and Product Innovation Customer Service Quality and Loyalty Outsourcing and Supply Chain Management

Abstract

Purpose Case study findings increasingly indicate that the implementation of service‐based business concepts is becoming a global business trend. The purpose of this paper is to analyze a broad European survey to understand the extent to which service infusion has already deeply affected manufacturing industries and the factors influencing service infusion. Design/methodology/approach Data from 3,376 companies participating in the European Manufacturing Survey were included in an evaluation of service offerings and service sales. Multivariate data analyzes were used to develop statistically relevant conclusions regarding service infusion and the factors influencing it. Findings Whereas, the vast majority of companies surveyed offer services, the turnover generated by services was still low, and the adopted service strategies did not seem fully developed. The most significant determinant of service sales was the breadth of services offered. Other relevant explanatory factors included the characteristics of the type of products sold, whereas the position in the supply chain did not seem to affect service infusion. Research limitations/implications Using large‐scale survey data, this analysis provides a representative picture of service infusion in manufacturing industries and related causal relationships. Further qualitative research should develop interpretations of the relationships found in our quantitative analysis; as such, subsequent quantitative analyzes are necessary. Originality/value As most previous studies on service infusion are based on case study reports, the value of this paper comes from its use of a broad empirical database. Thus, the paper supports, confirms, and generalizes previous qualitative findings.

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References

2001Econometric Analysis of Cross Section and Panel Data 1979A Paradigm for Developing Better Measures of Marketing Constructs 2008On value and value co-creation: A service systems and service logic perspective 1988Servitization of business: Adding value by adding services 2003Managing the transition from products to services 2002Clarifying the concept of product–service system 2009The servitization of manufacturing 2008Exploring the financial consequences of the servitization of manufacturing

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2018The impact of servitization on firm performance: a meta-analysis 2015Seeking competitive advantage with service infusion: a systematic literature review 2017Capability antecedents and performance outcomes of servitization 2019Servitization and sustainability actions. Evidence from European manufacturing companies 2016Motivations for servitization: the impact of product complexity 2016Capability configurations for advanced service offerings in manufacturing firms: Using fuzzy set qualitative comparative analysis

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