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Patterns of service strategy changes in manufacturing companies

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abstract The importance of service strategies has highly increased lately. Increasing competitive intensity and decreasing product margins drive more and more manufacturing companies to move along the product-service continuum towards extending their service business. While widely agreed that services offer new growth potentials, the literature falls short of explaining if service strategies are stable, and if and how companies move between them over time. Based on three longitudinal samples from a 1997, 2001 and 2004 surveys on 97 European manufacturing companies, we identified service strategies using factor and cluster analysis, which served as input for studying strategic changes in the service strategies. Identified service strategies comprise customer service strategy (augment product offerings with customer service), after-sales service providers (basic services for the installed base to ensure proper product functioning), customer support service providers (advanced preventive services to optimize product utilization), outsourcing partners (assume risk and responsibility for customer's operating processes), and development partners (use development competencies to co-produce R&D services with customers). Our research shows that while initially existing strategy types are rather stable, new additional types emerge during the second half of the study. Also, results indicate that many companies change strategy and which patterns of change predominate.
   
type conference paper (English)
   
keywords Service strategy, strategic management, strategic change, manufacturing companies
   
name of conference SERVSIG International Research Conference 2008 (Liverpool)
date of conference 5-6-2008
review external review
   
citation Gebauer, H., Fischer, T., & Fleisch, E. (2008). Patterns of service strategy changes in manufacturing companies. In .