Organisational transformation towards servitization

Abstract

Purpose: The aim of this paper is to develop a model, which illuminates the transformation journey towards servitization in the manufacturing context. Design/Methodology/Approach: This is a theoretical paper based on extensive review of literature on organisation change and transformation, and servitization. This was followed by a series of structured engagement workshops with senior executives of 10 multinational manufacturers in order to synthesis the propositions and further inform the development of the framework. Findings: Our analysis demonstrates that the organisational transformation can be explained as four stages of development, which the manufacturers proceed through according to the impacts of five forces. Originality/Value: Previous studies on servitization succeed at identifying different stages towards servitization. However, the stages are loosely defined and struggled to demonstrate the relevant transformation pathways. This paper has, therefore, addressed this issue.