DOI QR코드

DOI QR Code

The influence of Servitization Decision Factors on the Performance of SMEs : Focused on the Mediating Effects of Servitization Competency

중소제조업의 서비스화 결정요인이 성과에 미치는 영향 : 서비스화 역량의 매개효과를 중심으로

  • Suh, Jieyoun (Undergraduate School of Management Consulting, Hanyang University) ;
  • Park, Kwangho (Department of Business Administration, Hanyang University)
  • 서지연 (한양대학교 일반대학원 경영컨설팅학과) ;
  • 박광호 (한양대학교 ERICA캠퍼스 경상대학 경영학부)
  • Received : 2019.04.25
  • Accepted : 2019.06.16
  • Published : 2019.06.30

Abstract

As the technological gap amongst manufacturers decreases, the life cycle of products has shortened, and competition accelerates due to the development of technology, incumbent manufacturing companies face growth limitations. In order to overcome such business issues, manufacturing companies are increasingly interested in changes in business models and innovations, especially in the direction of providing services where they can maintain the competitive advantage of their products. In such context, this empirical study examines managerial leadership, differentiation strategies, and products and services pricing as 'servitization factors', which can be driving forces for moving into a new era of growth for Korean SMEs, focusing on the mediating effects of servitization competency. The results are as follows : First, it was confirmed that executive leadership, differentiation strategy, and information & communication technology capability have a direct effect on service sales. Second, the process competency, partnership competency, and ICT competency, which are presented as the service competence of SMEs, were found to play an important role in inducing service sales in managerial leadership, differentiation strategy, product and services pricing. It also emphasized the role of the public policy such as helping to foster SMEs as key partners in the expansion of social facilities and establishing platforms through ICT and data utilization for the convergence of manufacturing services.

Keywords

References

  1. Adrodegari, F. and Saccani, N., Business models for the service transformation of industrial firms, The Service Industries Journal, 2017, Vol. 37, Issue 1, pp. 57-83. https://doi.org/10.1080/02642069.2017.1289514
  2. Baines, T. and Lightfoot, H., Made to serve : how manu facturers can compete through servitization and product service systems, John Wiley & Sons, 2013.
  3. Baines, T., Lightfoot, H., Benedettini, O., and Kay, J.M., The servitization of manufacturing : A review of literature and reflection on future challenges, Journal of Manufacturing Technology Management, 2009, Vol. 20, No. 5, pp. 547-567. https://doi.org/10.1108/17410380910960984
  4. Benedettini, O. and Neely, A., Factors influencing service complexity : the perspective of servitized manufacturers, University of Cambridge, 2012, pp. 1-10.
  5. Bustinza, O.F., Vendrell-Herrero, F., and Baines, T., Service implementation in manufacturing : An organizational transformation perspective, International Journal of Production Economics, 2017, Vol. 192, Issue C, pp. 1-8. https://doi.org/10.1016/j.ijpe.2017.08.017
  6. Cenamor, J., Sjodin, D.R., and Parida, V., Adopting a platform approach in servitization : Leveraging the value of digitalization, International Journal of Production Economics, 2017, Vol. 192, Issue C, pp. 54-65. https://doi.org/10.1016/j.ijpe.2016.12.033
  7. Chiu, M.C., Chu, C.Y., and Chen, C.C., An integrated product service system modelling methodology with a case study of clothing industry, International Journal of Production Research, 2018, Vol. 56, Issue 6, pp. 2388-2409. https://doi.org/10.1080/00207543.2017.1374570
  8. Crozet, M. and Milet E., Should everybody be in services? The effect of servitization on manufacturing firm performance, Journal of Economics & Management Strategy, 2017, Vol. 26, No. 4, pp. 820-841.
  9. Dachs, B., Biege, S., Borowiecki, M., Lay, G., Jager, A., and Schartinger, D., The servitization of european manufacturing industries, The Service Industries Journal, 2014, Vol. 34, Issue 1, pp. 5-23. https://doi.org/10.1080/02642069.2013.776543
  10. Fang, E., Palmatier, R.W., and Steenkamp, J.B.E., Effect of Service Transition Strategies on Firm Value, Journal of Marketing, 2008, Vol. 72, No. 5, pp. 1-14. https://doi.org/10.1509/jmkg.72.1.001
  11. Hewitt, P., The government's manufacturing strategy, Secretary of State for Trade and Industry, available at : www.dti.gov.uk/manufacturing, 2002.
  12. Hwang, S.-H., Factors and Effects on Serviceization of Manufacturing Firms, Sogang University, 2012.
  13. Hyundai Economic Research Institute, Analysis of Economic Effects of Service Intermediate Input, 2015, pp. 15-16.
  14. Hyundai Economic Research Institute, The Age of the Fourth Industrial Revolution, Service Towards Manufacturing, 2017, pp. 17-33.
  15. Information and Communication Technology Promotion Center, Current State of Service Development in Manufacturing Industry, 2018.
  16. Jung, J.H., Han, J.H., and Kim, C.B., Selection of Manufacturing Business Service Factors and Relative Importance Evaluation, Korean Service Management Society Conference, 2014, pp. 179-197.
  17. Koo, W.L., Lim, H.S., and Sin, H.J., An Empirical Study on the Influence of Service Agents on Business Performance in Manufacturing Companies, Telecommunicators Review, 2010, No. 20-06, pp. 934-940.
  18. Korea Institute of Science and Technology Evaluation and Planning, Factory Automation and Intelligence Status and Related Policy Awareness Survey, 2018.
  19. Kowalkowski, C., Gebauer, H., and Oliva, R., Service growth in product firms : Past, present, and future, in Industrial Marketing Management, 2017, Vol. 60, pp. 82-88. https://doi.org/10.1016/j.indmarman.2016.10.015
  20. Kowalkowski, C., Gebauer, H., Kamp, B., and Parry, G., Servitization and deservitization : Overview, concepts, and definitions, Industrial Marketing Management, 2017, Vol. 60, pp. 4-10. https://doi.org/10.1016/j.indmarman.2016.12.007
  21. Kwon, E.Y., The Impact of Servicing on the Recognition of Service Value of Customers, [Ph.D. Thesis], 2018.
  22. Lafuente, E., Vaillant, Y., and Vendrell-Herrero, F., Territorial servitization : Exploring the virtuous circle connecting knowledge-intensive services and new manufacturing businesses, Interantional Journal of Product Economics, 2017, Vol. 192, pp. 19-28. https://doi.org/10.1016/j.ijpe.2016.12.006
  23. Lay, G.(Ed.), Servitization in Industry, Springer, 2014.
  24. Lay, G., Copani, G., Jager, A., and Biege, S., The relevance of service in european manufacturing industries, Journal of Service Management, 2010, Vol. 21, No. 5, pp. 715-726. https://doi.org/10.1108/09564231011092908
  25. Lee, N.K., Shin, H.J., and Lim, H.S., The Impact of Strategies and Organizational Structures of Manufacturing Firms on Service Orientation, Management Research, 2017, Vol. 46, No. 3, pp. 755-779.
  26. Lertsakthanakun, J., Thawesaengskulthai, N., and Pongpanich, C., Servitization decisionmaking framework for Thai manufacturing companies, International Journal of Business and Management, 2012, Vol. 7, No. 12, pp. 147-158.
  27. Meier, H., Roy, R., and Seliger, G., Industrial product-service systems-IPS2, CIRP Annals-Manufacturing Technology, 2010, Vol. 59, No. 2, pp. 607-627. https://doi.org/10.1016/j.cirp.2010.05.004
  28. Neely, A., Exploring the financial consequences of the servitization of manufacturing, Operations Management Research, 2008, Vol. 1, No. 2, pp. 103-118. https://doi.org/10.1007/s12063-009-0015-5
  29. Neuhuttler, J., Woyke, I.C., and Ganz, W., Applying Value Proposition Design for Developing Smart Service Business Models in Manufacturing Firms, Advances in Intelligent Systems and Computing, 2018, pp. 103-114.
  30. Nordin, F. and Servadio, L., Critical issues during servitization : an in-depth case study, Paper presented at AMA Servsig, International Service Research Conference, Hanken School of Economics, Helsinki, Finland, 2012.
  31. Oliva, R. and Kallenberg, R., Managing the Transition from Products to Services, International Journal of Service Industry Management, 2003, Vol. 14, No. 2, pp. 160-172. https://doi.org/10.1108/09564230310474138
  32. Parida, V., Sjodin, D.R., Wincent, J., and Kohtamaki, M., A Survey Study of the Transitioning towards High-value Industrial Product-services, Procedia CIRP, 2014, Vol. 16, pp. 176-180. https://doi.org/10.1016/j.procir.2014.01.019
  33. Rabetinoa, R., Kohtamaki, M., and Gebauer, H., Strategy map of servitization, International Journal of Production Economics, 2017, Vol. 192, pp. 144-156. https://doi.org/10.1016/j.ijpe.2016.11.004
  34. Raddats, C. and Kowalkowski, C., A reconceptualization of manufacturers' service strategies, Journal of Business to Business Marketing, 2014, Vol. 21, No. 1, pp. 19-34. https://doi.org/10.1080/1051712X.2013.857500
  35. Raddatz, C., Schmukler, S.L., and Williams, T., International asset allocations and capital flows : the benchmark effect, Policy Research Working Paper Series 6866, The World Bank, 2014.
  36. Ren, G. and Gregory, M., Servitizatin in Manufacturing Companies, Paper Presented at 16th Frontiers in Service Conference, San Francisco, 2007.
  37. Sawney, M., Going beyond the product : Definding, designing, and dilivering customer solutions, In R.F. Lusch, and S.L. Vargo, (Eds.) The Service-Dominent Logic of Marketing : Dialog, Dedate, and Directions : 365-380. Armonk, NY : M.E. Sharpe, 2006.
  38. Slack, N., The changing nature of operations flexibility, International Journal of Operations and Production Management, 2005, Vol. 25, Issue 12, pp. 1201-1210, https://doi.org/10.1108/01443570510633602
  39. Small Business Research Institute, KOSBI Small Business Trends, 2018, Vol. 1, No. 1, pp. 1-25.
  40. Small Business Research Institute, Report on basic strategy for manufacturing servitization, 2016.
  41. Small Business Research Institute, The Fourth Industrial Revolution and SME Innovation Challenges, 2017.
  42. Sousa, R. and da Silveira, G.J.C., Implementing Servitization Strategies : Trajectories of Capability Development and Offering of Basic and Advanced Services, Practices and Tools for Servitization, 2018, pp. 201-212.
  43. Tukker, A., Eight types of product-service system : eight ways to substantiality? Experiences from SusProNet, Business Strategy and the Environment, 2004, Vol. 13, No. 4, pp. 246-260. https://doi.org/10.1002/bse.414
  44. Vandermerwe, S. and Rada, J., Servitization of business : adding value by adding services, European Management Journal, 1989, Vol. 6, No. 4, pp. 314-324. https://doi.org/10.1016/0263-2373(88)90033-3
  45. Visnjic, I. and Van Looy, B., Servitization : disentangling the impact of service business model innovation on manufacturing firm performance, Journal of Operations Management, 2013, Vol. 31, No. 4, pp. 169-180. https://doi.org/10.1016/j.jom.2013.02.001
  46. Wise, R. and Baumgartner, P., Go downstream : The new profit imperative in manufacturing, Harvard Business Review, 1999, Vol. 77, No. 5, pp. 133-141.
  47. Yoon, Y., Factors Affecting Service Productivity in Products-Focusing on SME Capabilities, [Ph.D. Thesis], 2016.