Service business in manufacturing companies - Identifying misconceptions and directing further research

Despite increasing interest in service business in manufacturing companies, the arguments for the transition from selling products to providing services still lacks theoretical robustness. By using eight focus groups with 45 participating companies, the following five misconceptions related to the economic and strategic arguments could be identified: the share of service revenue is an indicator for moving toward services, services are more profitable than products, service business is less volatile than product business, services are used for differentiating the total offering and service strategy creates sustainable competitive advantages. The reflection on these misconceptions guides further research and enriches the conceptualization of services in a manufacturing context.