Citation:
Veronica Martinez, Marko Bastl, Jennifer
Kingston, Stephen Evans, Challenges in
transforming manufacturing organisations into
product-service providers,
Journal of Manufacturing Technology Management,
Volume 21, Number 4, 2010, Pages 449-469
Abstract:
Purpose – The purpose of this paper is to present challenges experienced by UK
manufacturing companies undergoing a servitization journey to becoming product-
service providers.
Design/methodology/approach – The paper uses an exploratory single-case study
approach based on semi-structured interviews, and archival data. A total of 22
senior managers were interviewed from the product-service provider and its two
suppliers, resulting in more than 400 pages of interview data. Data were
analysed through an inductive research analysis by an emergent identification of
patterns.
Findings – This research identifies critical and frequent challenges experienced
by UK manufacturing companies undergoing a servitization journey to becoming
product-service system (PSS) providers. They are condensed into five pillars,
which constitute the architecture of challenges in servitization. The
architecture of challenges in servitization provides a full description of the
strategy and operations of PSSs.
Research limitations/implications – This is qualitative research based on a
single case study. Given the nature of research design, the identified patterns
cannot be used as a predictive tool.
Practical implications – This research provides a framework to understand,
analyse and plan the strategic transformations to more highly servitized
organisational forms.
Originality/value – This paper contributes to knowledge with a new model called
“the architecture of challenges in servitization”. This is the only model that
explains the importance of the strategic, operational and social tests that
organisations confront when adopting servitization strategies. If companies
understand these challenges, they have the potential to create unique sets of
values for a variety of s