Success factors for achieving high service revenues in manufacturing companies

Item Type Journal paper

Purpose - Despite the proven benefits of an extended service business, most manufacturing companies find it extremely difficult to increase service revenues successfully. Design/methodology/approach - An extensive benchmarking project was conducted with a variety of firms in order to gain a better understanding of success factors aimed at increasing service revenue in manufacturing companies. By reviewing the first benchmarking findings with companies that struggled to achieve a high level of service revenue, additional insight into how service revenue is influenced by the success factors was gained. Findings - This paper attempts to provide a better understanding of the necessary changes in a firm's activities, organizational structure and culture, and to demonstrate the impact of these factors on service revenue increases. Research limitations/implications - The findings have some clear limitations. The main focus was on the German and Swiss machinery equipment manufacturing industries, and remarks are limited to these sectors. However, it is recommended applying the findings to other industry sectors which are confronted with similar problems. Practical implications - The analysis and conclusions have significant implications for both researchers and managers. For service management theorists, this paper suggests that increasing service revenue in manufacturing companies is influenced strongly by several factors. All factors seem to be the right triggers for increasing service revenues in the desired manner. Monitoring these success factors and gaining an understanding of their impact, provides some guidance for managers seeking to create strong growth in service revenue. Originality/value - This paper offers practical help to achieve high service revenues in manufacturing companies.

Authors Gebauer, Heiko; Friedli, Thomas & Fleisch, Elgar
Journal or Publication Title Benchmarking: An international Journal
Language English
Subjects business studies
HSG Classification contribution to scientific community
Refereed Yes
Date 20 July 2006
Publisher Emerald
Place of Publication Bingley
Volume 13
Number 3
Page Range 374-386
Number of Pages 13
ISSN 1463-5771
ISSN-Digital 1758-4094
Publisher DOI 10.1108/14635770610668848
Depositing User Heiko Gebauer
Date Deposited 20 Feb 2007 14:26
Last Modified 23 Aug 2016 11:01


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Gebauer, Heiko; Friedli, Thomas & Fleisch, Elgar (2006) Success factors for achieving high service revenues in manufacturing companies. Benchmarking: An international Journal, 13 (3). 374-386. ISSN 1463-5771

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