Factors Influencing Service Complexity: The Perspective of Servitized Manufacturers

Abstract

This paper was presented at the EurOMA Conference 2012 Why this paper might be of interest to Alliance Partners: The shift of manufacturers into services has been described as a process that involves the provision of services of increasing complexity. This paper analyses the characteristics of the suggested complexity. By assessing the multiple determinants that the business and management literature have proposed for service complexity from the perspectives of six servitized manufacturers from three different industrial sectors, the study develops insights into the concrete and practical features of complexity in the context of the service offerings of manufacturing firms. Results show that, while manufacturers deal with relevant complexity in their services, this complexity appears to be mainly related to service delivery issues that require the development of new and service-specific skills. Overall, manufacturers appear to be quite cautious about adding complexity to their service businesses. Finally, results indicate that the complexity of the product served and the context in which the services are offered can be more important determinants of complexity than the service itself. The study builds on previous work from the same authors, also included in the Cambridge Service Alliance monthly papers series (June 2012)

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