Manufacturers' strategic intensity on servitization and its impact on firm profitability: a panel analysis

Manufacturing industries across developed countries such as Germany, Japan, and USA face stiff competition and rapid product commoditization. As a reaction, manufacturers are looking for new ways to gain and sustain a competitive edge in their markets. In the past decades, industrial services have b...

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Bibliographische Detailangaben
1. Verfasser: Akalan, Rodi (VerfasserIn)
Format: Abschlussarbeit Elektronisch E-Book
Sprache:English
Veröffentlicht: Berlin 2021
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Zusammenfassung:Manufacturing industries across developed countries such as Germany, Japan, and USA face stiff competition and rapid product commoditization. As a reaction, manufacturers are looking for new ways to gain and sustain a competitive edge in their markets. In the past decades, industrial services have become the central element around which manufacturers build a sustainable competitive advantage. Firms increasingly shift their strategic focus from producing physical goods to providing services. This fundamental transition from goods-based to service-based business models is known in research as "servitization". Real world examples such as IBM’s shift from a hardware manufacturer to a consulting and software company has fueled the continuous interest in servitization from researchers as well as practitioners. Extant research studies provide first valuable insights into the conceptualization, contingencies, and outcomes of servitization. However, there are two existing research gaps in the literature. First, there is no recent research study that takes stock of the servitization landscape and its development over time. Servitization is a very dynamic trend which requires an up-to-date look at developments. Second, research about the financial impact of servitization remains inconclusive. The majority of studies link servitization with positive financial outcomes. However, the type of link (i.e., linear vs. non-linear) as well as contingency factors vary significantly between studies. Against this backdrop, this study compiles a dataset consisting of panel data for over 1,000 U.S. manufacturers for the years 2009 to 2018. The first part of this dissertation draws a picture of the U.S. servitization landscape and its development during the past decade. The second part of the study investigates the profitability effect of industrial services.
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