Identifying (territorial) tensions in the servitization value chain

Burton, Jamie, Story, Vicky, Zolkiewski, Judy, Raddats, Chris, Baines, Tim S. and Medway, Dominic (2015). Identifying (territorial) tensions in the servitization value chain. IN: Servitization : the theory and impact. Baines, Tim and Harrison, David K. (eds) Birmingham (UK): Aston University.

Abstract

Purpose: To understand the tensions that servitization activities create between actors within networks. Design/methodology/approach: Interviews were conducted with manufacturers, intermediaries and customers across a range of industrial sectors. Findings: Tensions relating to two key sets of capabilities are identified: in developing or acquiring (i) operant technical expertise and (ii) operand service infrastructure. The former tension concerns whom knowledge is co-created with and where expertise resides. The latter involves a territorial investment component; firms developing strategies to acquire greater access to, or ownership of, infrastructures closer to customers. Developing and acquiring these capabilities is a strategic decision on the part of managers of servitizing firms, in order to gain recognized power and control in a particular territory. Originality/value: This paper explores how firms’ servitization activities involve value appropriation (from the rest of the network), contrasting with the narrative norm for servitization: that it creates additional value. There is a need to understand the tensions that servitization activities create within networks. Some firms may be able to improve servitization performance through co-operation rather than competition, generating co-opetitive relationships. Others may need to become much more aggressive, if they are to take a greater share of the ‘value’ from the value chain.

Divisions: Aston Business School > Operations & information management
Aston Business School > Operations & information management research group
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Additional Information: © Aston Business School
Event Title: Spring Servitization Conference SSC2015
Event Type: Other
Event Dates: 2015-05-18 - 2015-05-19
Uncontrolled Keywords: servitization infrastructure,capabilities,territory
Published Date: 2015-05
Authors: Burton, Jamie
Story, Vicky
Zolkiewski, Judy
Raddats, Chris
Baines, Tim S.
Medway, Dominic

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