TY - JOUR

T1 - Exploring the root causes of servitization challenges

T2 - an organisational boundary perspective

AU - Ziaee Bigdeli, Ali

AU - Kapoor, Kawaljeet

AU - Schroeder, Andreas

AU - Omidvar, Omid

PY - 2021/8/13

Y1 - 2021/8/13

N2 - Purpose: This paper explains how servitization disrupts long-established internal and external boundaries of product-focused manufacturers and investigates the root causes of servitization challenges. Design/methodology/approach: The authors draw from the collective experiences of 20 senior executives from ten multinational manufacturers involved in servitization, using a multiple case study approach, and employ a codebook thematic analysis technique. Findings: The authors develop an integrative framework based on the theoretical notions of power, competency and identity boundaries to offer insights into the root causes of various servitization-related challenges. Research limitations/implications: Although the extant literature discusses servitization challenges, it does not examine the underlying root causes that create them in the first place. This study contributes to the extant research by establishing rational links between organisational boundaries (internal and external) and servitization challenges in the interest of building a coherent and systematically integrated body of theory that can be successfully applied and built upon by future research. Practical implications: This study provides a foundation for managers to recognise, anticipate and systematically manage various boundary-related challenges triggered by servitization. Originality/value: It is one of the first studies to employ the concept of organisational boundary to understand the challenges created by servitization and to account for both internal (between different functions of the same organisation) and external boundaries (between an organisation and its external stakeholders) to establish a holistic understanding of the impacts of servitization on manufacturers.

AB - Purpose: This paper explains how servitization disrupts long-established internal and external boundaries of product-focused manufacturers and investigates the root causes of servitization challenges. Design/methodology/approach: The authors draw from the collective experiences of 20 senior executives from ten multinational manufacturers involved in servitization, using a multiple case study approach, and employ a codebook thematic analysis technique. Findings: The authors develop an integrative framework based on the theoretical notions of power, competency and identity boundaries to offer insights into the root causes of various servitization-related challenges. Research limitations/implications: Although the extant literature discusses servitization challenges, it does not examine the underlying root causes that create them in the first place. This study contributes to the extant research by establishing rational links between organisational boundaries (internal and external) and servitization challenges in the interest of building a coherent and systematically integrated body of theory that can be successfully applied and built upon by future research. Practical implications: This study provides a foundation for managers to recognise, anticipate and systematically manage various boundary-related challenges triggered by servitization. Originality/value: It is one of the first studies to employ the concept of organisational boundary to understand the challenges created by servitization and to account for both internal (between different functions of the same organisation) and external boundaries (between an organisation and its external stakeholders) to establish a holistic understanding of the impacts of servitization on manufacturers.

KW - Organisational boundary

KW - Servitization

KW - Servitization challenges

U2 - 10.1108/IJOPM-08-2020-0507

DO - 10.1108/IJOPM-08-2020-0507

M3 - Journal article

VL - 41

SP - 547

EP - 573

JO - International Journal of Operations and Production Management

JF - International Journal of Operations and Production Management

SN - 0144-3577

IS - 5

ER -