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The Root Causes of Servitization Challenges

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Article number11762
<mark>Journal publication date</mark>1/08/2021
<mark>Journal</mark>Academy of Management Proceedings
Issue number1
Volume2021
Publication StatusPublished
<mark>Original language</mark>English

Abstract

This paper explains how servitization disrupts long-established internal and external boundaries of product-focused manufacturers and investigates the root causes of servitization challenges. It draws 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. We 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. 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.