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Servitization implementation in the manufacturing organisations: classification of strategies, definitions, benefits and challenges

Yes / The integration of products and services into a bundled product/service offering by manufacturing
organisations is seen as a global trend in today’s competitive business environment. The shift of
product-based manufacturers towards offering business solutions and value-added services to
consumers is termed as ‘Servitization’. Contrary to the potential benefits expected by adding service
activities to the offerings, advocates voice their concerns towards experiential problems and challenges
in employing the servitization strategy – termed as ‘Servitization Paradox’. Nevertheless, the shift from
product-based delivery to a service-based provision has the potential to significantly impact on
developing sustainable and eco-friendly environment. To provide greater insights to the servitization
phenomenon, this paper presents a comprehensive analysis of the servitization implementation in
manufacturing organisations. In order to respond to the latter, we propose the following three research
questions “Q1 – what are the different types of servitization strategies”, “Q2 – what are the different
servitization definitions”, “Q3 – what are the potential benefits in selecting a servitization strategy?”,
“Q4 – what are the challenges in transitioning towards servitization?”. A systematic literature review
is carried out to understand the past trends and extant patterns/themes in the servitization strategy
research area, evaluate contributions, summarise knowledge, thereby identifying limitations,
implications and potential further research avenues. The key findings confirm servitization studies have
contributed both conceptually and empirically to the development and accumulation of intellectual
wealth to the manufacturing operations and supply chain discipline. Moreover, the findings clearly
indicate the potential of servitization in transitioning manufacturing organisations (e.g. benefits) and
utilising innovative technologies to generate business value. Nevertheless, some voices are backing
further research/development in the area of servitization due to the several existing challenges.

Identiferoai:union.ndltd.org:BRADFORD/oai:bradscholars.brad.ac.uk:10454/18309
Date10 January 2021
CreatorsKamal, M.M., Sivarajah, Uthayasankar, Bigdeli, A.Z., Missi, F., Koliousis, Y.
PublisherElsevier
Source SetsBradford Scholars
LanguageEnglish
Detected LanguageEnglish
TypeArticle, Accepted manuscript
Rights© 2020 Published by Elsevier Ltd. . Reproduced in accordance with the publisher's self-archiving policy. This manuscript version is made available under the CC-BY-NC-ND 4.0 license.

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