TY - JOUR
T1 - Explaining the servitization paradox
T2 - a configurational theory and a performance measurement framework
AU - Brax, Saara A.
AU - Calabrese, Armando
AU - Levialdi Ghiron, Nathan
AU - Tiburzi, Luigi
AU - Grönroos, Christian
N1 - Publisher Copyright:
© 2021, Saara A. Brax, Armando Calabrese, Nathan Levialdi Ghiron, Luigi Tiburzi, Christian Grönroos.
Copyright:
Copyright 2021 Elsevier B.V., All rights reserved.
PY - 2021/5/31
Y1 - 2021/5/31
N2 - Purpose: Previous research reports mixed results regarding the performance impact of servitization in manufacturing firms. To resolve this, the purpose of this paper is to develop a conceptually consistent and comprehensive measurement framework for both dimensions, servitization and its performance effect, and apply in a configurational analysis to reexamine previous evidence, arriving at a configurational theory of the relationship between servitization and firm performance. Design/methodology/approach: Combining systematic literature review (SLR) and inductive reasoning, the existing indicators for servitization and performance are identified and clustered into groups that adequately represent both dimensions. The dataset is reanalyzed against the resulting framework to identify the configurational patterns and to formulate the theoretical propositions. Findings: Financial and nonfinancial indicators of servitization and its performance impact are organized into a comprehensive measurement framework grounded on existing research. The subsequent meta-analysis shows that the positive or negative impacts of servitization on performance depend on how firms implement servitization strategies and which performance aspects are examined. Research limitations/implications: The results explain when servitization can be successful and confirm the existence of the so-called servitization paradox. The meta-analysis identified patterns that explain the previous mixed results, shaping a configurational theory of servitization. Thus, the measurement framework is conceptually robust and has sufficient detail to capture servitization and its performance outcome as it feasibly distinguished between different organizational configurations. Originality/value: The framework provides a comprehensive portfolio of indicators for both managers and scholars to measure servitization intensity and performance. This supports managers of servitizing firms in leading this organizational transformation while avoiding its organizational and financial paradoxes.
AB - Purpose: Previous research reports mixed results regarding the performance impact of servitization in manufacturing firms. To resolve this, the purpose of this paper is to develop a conceptually consistent and comprehensive measurement framework for both dimensions, servitization and its performance effect, and apply in a configurational analysis to reexamine previous evidence, arriving at a configurational theory of the relationship between servitization and firm performance. Design/methodology/approach: Combining systematic literature review (SLR) and inductive reasoning, the existing indicators for servitization and performance are identified and clustered into groups that adequately represent both dimensions. The dataset is reanalyzed against the resulting framework to identify the configurational patterns and to formulate the theoretical propositions. Findings: Financial and nonfinancial indicators of servitization and its performance impact are organized into a comprehensive measurement framework grounded on existing research. The subsequent meta-analysis shows that the positive or negative impacts of servitization on performance depend on how firms implement servitization strategies and which performance aspects are examined. Research limitations/implications: The results explain when servitization can be successful and confirm the existence of the so-called servitization paradox. The meta-analysis identified patterns that explain the previous mixed results, shaping a configurational theory of servitization. Thus, the measurement framework is conceptually robust and has sufficient detail to capture servitization and its performance outcome as it feasibly distinguished between different organizational configurations. Originality/value: The framework provides a comprehensive portfolio of indicators for both managers and scholars to measure servitization intensity and performance. This supports managers of servitizing firms in leading this organizational transformation while avoiding its organizational and financial paradoxes.
KW - 512 Business and Management
KW - Configurational analysis
KW - Firm performance
KW - Measurement
KW - Servitization
KW - Servitization level
KW - Servitization paradox
UR - http://www.scopus.com/inward/record.url?scp=85107378969&partnerID=8YFLogxK
U2 - 10.1108/IJOPM-08-2020-0535
DO - 10.1108/IJOPM-08-2020-0535
M3 - Article
AN - SCOPUS:85107378969
SN - 0144-3577
VL - 41
SP - 517
EP - 546
JO - International Journal of Operations and Production Management
JF - International Journal of Operations and Production Management
IS - 5
ER -