Servitization transformation process: a longitudinal case study (2020)
Type of ContentElectronic Thesis or Dissertation
Degree NameDoctor of Philosophy
PublisherUniversity of Canterbury
AuthorsDonovan, Julieshow all
Manufacturers are pursuing a servitization strategy because they can no longer compete on products alone. They are facing strong competition from East Asian countries who are dominating in the high volume, low cost product market which is stagnating product demand. Customers are also demanding services be performed by their suppliers as they outsource non-core business activities. Servitization, recognized by scholars as the process of combining value-added services with products, is a way in which manufacturers can remain business sustainable in a competitive market. Researchers add that the servitization process is fraught with obstacles and that firms need to develop existing capabilities in order to raise barriers to competition and sustain business revenue. This case study research develops an understanding of how businesses remain sustainable when servitizing through the lens of dynamic capabilities. A comparative case study provides evidence of varying use of dynamic capabilities at work resulting in different rates of servitization success. Findings demonstrate that firms seize opportunities from mobilizing collaboration with their supply chain partners; transform their organization by being responsive and flexible to changes in managing the service paradox and reconfigure their unique relationships to be strategically aligned to secure new markets. Our study details the interlinkages of how these dynamic capabilities address and mitigate challenges in the process. These capabilities lead to the business achieving and remaining sustainable in servitizing manufacturing. The findings are grounded in the context of manufacturers and provide a useful framework for others to investigate a firms’ sustainability in servitization.