Capability antecedents and performance outcomes of servitization : Differences between basic and advanced services

Abstract

Purpose

The purpose of this paper is to theoretically articulate and empirically test an integrated model of capability antecedents and performance outcomes of servitization strategies. The authors characterize servitization strategies based on the offering of two types of services: basic services (BAS) and advanced services (ADS).

Design/methodology/approach

Hypotheses are tested based on statistical analyses of a large survey of manufacturers from different countries and sectors.

Findings

The authors find that manufacturing capabilities associate with the provision of BAS, while service capabilities associate with both BAS and ADS; BAS do not impact financial performance, but support the offering of ADS; there seem to be naturally occurring servitization trajectories involving the gradual development of balanced levels of BAS and ADS and adequate levels of manufacturing and service capabilities.

Research limitations/implications

The findings on servitization trajectories are based on the observation of manufacturing business units at different stages of servitization (cross-sectional data).

Practical implications

Manufacturers wishing to servitize should distinguish between BAS and ADS and deploy a balanced adoption of BAS and ADS, using BAS as a platform. This should be accompanied with the building of appropriate capabilities.

Originality/value

This is one of the first studies to show an explicit link between different servitization strategies, capabilities, and servitization maturity. It provides new insights into the servitization paradox and servitization trajectories.