Oscar F. Bustinza

Servitization: revisiting the state-of-the-art and research priorities

Purpose: The purpose of this paper is to consolidate the servitization knowledge base from an organizational change perspective, identifying developed, developing and undeveloped topics to provide a platform that directs future research. Design/methodology/approach: This paper addresses three objectives: it comprehensively examines organizational change management literature for selection of a theoretical framework; it classifies extant studies within the framework through a systemic literature review; and it analyses 232 selected papers and proposes a research agenda. Findings: Analysis suggests increasing global awareness of the importance of services to manufacturers. However, some topics, especially related to servitization transformation, remain undeveloped. Research limitations/implications: Although the authors tried to include all publications relevant to servitization, some might not have been captured. Evaluation and interpretation relied on the research team and subsequent research workshops. Practical implications: One of the most significant challenges for practitioners of servitization is how to transform a manufacturing organization to exploit the opportunity. This paper consolidates literature regarding servitization, identifying progress concerning key research topics and contributing a platform for future research. The goal is to inform research to result eventually in a roadmap for practitioners seeking to servitize. Originality/value: Although extant reviews of servitization identify themes that are examined well, they struggle to identify unanswered questions. This paper addresses this gap by focusing on servitization as a process of organizational change.

Six sigma, absorptive capacity and organisational learning orientation

The importance of the six sigma methodology in industry is growing constantly. However, there are few empirical studies that analyse the advantages of this methodology and its positive effects on organisational performance. The purpose of this paper is to extend understanding of the success of six sigma quality management initiatives by investigating the effects of six sigma teamwork and process management on absorptive capacity. It also seeks to understand the relation between absorptive capacity and organisational learning as two sources of sustainable competitive advantage. The information used comes from a larger study, the data for which was collected from a random sample of 237 European firms. Of these 237 organisations, 58 are six sigma organisations. Structural equation modelling (SEM) was used to test the hypotheses. The main findings show that six sigma teamwork and process management positively affect the development of absorptive capacity. A positive and significant relationship is also observed between absorptive capacity and organisational learning orientation. The findings of this study justify six sigma implementation in firms. This study provides us with an in-depth understanding of some structural elements that characterise the six sigma methodology, enabling us to provide an explanation for its success.

Servitization and competitive advantage: the importance of organizational structure and value chain position

OVERVIEW: Servitization represents a business-model change and organizational transformation from selling goods to selling an integrated combination of goods and services. Competitive advantage is one outcome of this shift. During servitization, companies follow stages to realize services as an opportunity to differentiate from goods and achieve higher customer satisfaction. This study analyzes this transition from base, intermediate, and advanced services by presenting results from 102 senior executives in multinational companies. Our results suggest increasing interest in service-led strategies in manufacturing companies. The results also show that increasing differentiation and high customer satisfaction are fundamental to achieving competitive advantage and superior performance with services. The analysis also indicates the importance of a companys position in the value chain and the organizational structure it selects to support services in successful servitization.

Explaining the Causes and Effects of Dynamic Capabilities Generation: A Multiple‐Indicator Multiple‐Cause Modelling Approach

The purpose of this paper is to develop a multiple‐indicator multiple‐cause model to explain dynamic capabilities generation. We use one of the main common effects of dynamic capabilities (operational, structural and strategic flexibility) to design a measurement tool for dynamic capabilities generation. Based on this measurement tool, we test the influence of several factors identified in the specialized literature as potential causes that trigger and promote dynamic capabilities generation. We use data from a survey of 200 CEOs of Spanish firms to test the model. The results show that only organizations whose managers have perceived a high degree of environmental dynamism have generated dynamic capabilities. The results also show that knowledge codification and technical innovation are significantly related to dynamic capabilities generation. We attempt to shed light on current theoretical debates about dynamic capabilities generation and provide a practical guide to explain the origin and results of dynamic capabilities that have been tested empirically.

Music business models and piracy

Purpose – The purpose of this paper is to estimate the scale of illegal file‐sharing activity across ten countries and to correlate this activity with country revenues. The work aims to elucidate an under‐explored business model challenge which exists in parallel with a music piracy challenge.Design/methodology/approach – The study data are drawn from a number of sources, including a data set of a survey of more than 44,000 consumers in ten different countries undertaken in 2010. Following analysis, all findings are validated by a panel of industry experts.Findings – Results show that non‐legitimate file‐sharing activity is a heterogeneous issue across countries. The scale of activity varies from 14 per cent in Germany to 44 per cent in Spain, with an average of 28 per cent. File‐sharing activity negatively correlates to music industry revenue per capita. This research finds many consumers are not engaging with online business models. Almost one fourth of the population claim that they do not consume digi...

Operations flexibility and outsourcing benefits: an empirical study in service firms

Outsourcing is a widely extended practice for many industries competing at the global level. Through outsourcing, firms are able to clearly define their core field of activities while transferring non-core activities to organizations enabled to perform them with higher degrees of efficiency. However, outsourcing is not exempted from some risks, especially those derived from process coordination, information sharing, or oportunistic behaviours. Operations flexibility can play a fundamental role in moderating these risks while increasing the benefits from outsourcing by decreasing the level of dependence on the outsourced activities. In this paper, a structural analysis is performed to analyse the relationship between operations flexibility and outsourcing benefits in service firms. Results show that higher levels of flexibility in the informations systems, markets, expansion, and personnel dimensions are directly related to higher outsourcing benefits.

Product–service innovation and performance: the role of collaborative partnerships and R&D intensity

Treating the intersection of the strategic partnerships, R&D intensity and servitisation literatures, this study explores empirically whether external collaborative service development and provision and industrial R&D intensity help to unpack the complex relation between product–service innovation (servitisation) and performance. We argue that manufacturing firms implementing services benefit from strategic partnerships with Knowledge-Intensive Business Service (KIBS) firms. KIBS partnering provides opportunities for downsizing, externalising risks and sharing knowledge. Additionally, manufacturers in R&D-intensive industries are more likely to benefit from implementing service provision than firms in other sectors because of industry dynamics and reduced customer uncertainty. The study surveys executives in 370 large manufacturers worldwide. Results reinforce the importance of concentric strategic partnerships to successful product–service innovation in high R&D industries.

Network positioning and risk perception in servitization: evidence from the UK road transport industry

For manufacturing firms, the integration of advanced services into their customer offerings has become a crucial decision. Such commercial decisions require weighting the risks and rewards of implementing a business model based on advanced services. While academic experts acknowledge uncertainty of returns on investment despite potential advantages, research generally fails to address the challenge of calculating the actual risks involved in ‘servitization’. This paper seeks better understanding of managers’ risk perception and of servitization implications for strategic partnerships and network positioning, while considering the impact of factors such as entry barriers, technological knowledge and position in the supply chain (SC). Qualitative evidence is drawn from an industrial case study involving firms in the UK’s road transport industry: 14 in-depth interviews with senior executives from seven companies (manufacturers, operators, technology providers). During interviews, a payment card exercise measured risk perception and willingness to take strategic ‘make-or-buy’ decisions. Results suggest that implementing advanced services is perceived as a high-risk strategy, especially when firms lack in-house technological knowledge. However, collaborative strategic partnerships within supply chain networks can mitigate this risk and prove crucial to building entry barriers against external competitors. Based on these findings, implications for network positioning are developed.

Copyright and creation: repositioning the argument

Purpose – This paper highlights the challenges and key arguments for digital copyright protection legislation for creative industries. Design/methodology/approach – This briefing is prepared by independent academics who place the arguments in context based upon literature and market data. Findings – Many of the arguments used against copyright protection laws draw upon flawed analysis. Artistic creators should be treated fairly and their work should be afforded the same protection as other property. Practical implications – Digital legislation warrants review, but not for the frequently cited reasons of “stifling innovation” or “restriction” of others using the work. Rather, artists need better protection for their work and fairer treatment with regards their property rights. Originality/value – The paper provides context and practical insights into the data used to influence policy decision makers, providing a stronger case for legislative review.

Organisational change towards servitization: a theoretical framework

Purpose: The need for a holistic framework for studying organisational transformation towards Servitization is implicit. This is particularly relevant as Servitization demands consideration of both business model and organisational change. The purpose of this paper is, therefore, to provide an integrative framework that systematically captures and evaluate existing literature on Servitization. Design/methodology/approach: The aim of the paper has been achieved through three main objectives; comprehensively examine the literature in organisational change management that would assist with the selection of the most effective evaluation framework, classify previous studies against the proposed framework through a systematic literature review methodology and analyse the selected papers and propose research questions/propositions based on the identified gaps. Findings: Results indicate that there are two somewhat macro opportunities for the Servitization community, namely, stronger infusion of generic theory into the Servitization debate and exploring Servitization in action through the lens of the theoretical framework. Practical implications: The findings of the paper demonstrate the gaps in the Servitization literature, which indeed require further theoretical/empirical research. Originality/value: It is discussed the usefulness and practicality of viewing research contributions that are setting out to be either “descriptive” or “prescriptive”. Consequently, the authors have proposed several avenues for future research based on these two viewpoints.