Road to Nowhere: Is Servitization really a (transformational) journey from product to pure service provider?

Thematic analysis was used to review data from semi-structured interviews with key informants and document analysis captured within the context of three case studies of servitizing manufacturing organizations. The purpose was... [ view full abstract ]

Thematic analysis was used to review data from semi-structured interviews with key informants and document analysis captured within the context of three case studies of servitizing manufacturing organizations. The purpose was to discover whether firms really commit to a complete transformation from product to pure service provider when they servitize, as is commonly assumed in transformational journey analogies common in servitization studies; or whether an alternative model of servitization can be identified. Initial findings suggest that complete transition to a customer-oriented ‘service’ structure for entire organisations may not be appropriate or feasible. Some customers still only want (the best) products, from product specialists. Customers also look for firms with an ongoing product heritage or pedigree. Additionally respondents highlighted the need for product-orientated and culturally bound staff being crucial to understanding whether service innovations would succeed. A portfolio approach (offering a range of product and pure service offers across a continuum) appears relevant for some manufacturers, rather than a consciously staged process of working only towards service development. Our data supports the notion that firms can have multiple context dependent and distinct, capabilities. Servitization, we contend, is not always a linear journey from a product to a service dominated state.