Abstract
This chapter reports the findings from a longitudinal study spanning 12 years. It contributes to an improved understanding of how servitization actually happens, and, more specifically, how it affects the servicizing organization. The focal company AIR was a B2B manufacturing company in the aviation business, specializing in manufacturing jet engines. The case describes and analyzes how a unit at AIR made the successful transition from a pure make-to-print actor (product/production logic) to offering overall solutions (service logic), where we focus on the challenges that AIR encountered. It provides six major findings; the most surprising is perhaps the necessity to handle ambidexterity for successful servitization.
Keywords
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
Alghisi, A., & Saccani, N. (2015). Internal and external alignment in the servitization journey—overcoming the challenges. Production Planning & Control, 26(14-15), 1219–1232.
Bowen, D. E., Siehl, C., & Schneider, B. (1989). A framework for analyzing customer service orientations in manufacturing [article]. Academy of Management Review, 14(1), 75–95.
Brax, S. (2005). A manufacturer becoming service provider—challenges and a paradox. Managing Service Quality: An International Journal, 15(2), 142–155.
Figueiredo, P., Silveira, G., & Sbragia, R. (2008). Risk sharing partnerships with suppliers: The case of EMBRAER. Journal of Technology Management & Innovation, 3(1), 27–37.
Gebauer, H., Fleisch, E., & Friedli, T. (2005). Overcoming the Service Paradox in Manufacturing Companies. European Management Journal, 23(1), 14–26.
Gebauer, H., & Friedli, T. (2005). Behavioral implications of the transition process from products to services. Journal of Business & Industrial Marketing, 20(2), 70–78.
Grönroos, C. (2011). A service perspective on business relationships: The value creation, interaction and marketing interface. Industrial Marketing Management, 40(2), 240–247.
Halvorsen, T. K., Hannås, G., & Hellström, M. M. (2020). Adaptation of Risk Sharing Partnerships (RSP) to New Industries. The 10th International Conference on Engineering, Project, and Production Management, Singapore.
Hipp, C., & Grupp, H. (2005). Innovation in the service sector: The demand for service-specific innovation measurement concepts and typologies. Research Policy, 34(4), 517–535.
Hodgkinson, I. R., Ravishankar, M. N., & Aitken-Fischer, M. (2014). A resource-advantage perspective on the orchestration of ambidexterity. The Service Industries Journal, 34(15), 1234–1252.
Jacobides, M. G., Cennamo, C., & Gawer, A. (2018). Towards a theory of ecosystems. Strategic Management Journal, 39(8), 2255–2276. https://doi.org/10.1002/smj.2904
Kastalli, I. V., & Van Looy, B. (2013). Servitization: Disentangling the impact of service business model innovation on manufacturing firm performance. Journal of Operations Management, 31(4), 169–180.
Martinez, V., Bastl, M., Kingston, J., & Evans, S. (2010). Challenges in transforming manufacturing organisations into product-service providers. Journal of Manufacturing Technology Management, 21(4), 449–469.
Mathieu, V. (2001). Service strategies within the manufacturing sector: Benefits, costs and partnership. International Journal of Service Industry Management, 12(5), 451–475.
Neely, A. (2008). Exploring the financial consequences of the servitization of manufacturing. Operations management research, 1(2), 103–118.
Oliva, R., & Kallenberg, R. (2003). Managing the transition from products to services. International Journal of Service Industry Management, 14(2), 160–172.
Ostrom, A. L., Parasuraman, A., Bowen, D. E., Patricio, L., & Voss, C. A. (2015). Service research priorities in a rapidly changing context. Journal of Service Research, 18(2), 127–159.
Sukhov, A., Magnusson, P. R., & Netz, J. (2019). What is an idea for innovation? In P. Kristensson, P. R. Magnusson, & L. Witell (Eds.), Service innovation for sustainable business—Stimulating, realizing and capturing the value from service innovation (pp. 29–47). World Scientific.
Tushman, M. L., & O’Reilly III, C. A. (1996). Ambidextrous organizations: Managing evolutionary and revolutionary change. California Management Review, 38(4), 8–30.
Vandermerwe, S., & Rada, J. (1989). Servitization of business: Adding value by adding services. European Management Journal, 6(4), 314–324.
von Hippel, E. (1994). “Sticky Information” and the locus of problem solving: Implications for innovation. Management Science, 40(4), 429–439.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Magnusson, P.R., Odhe, J. (2022). Servitization and the Necessity of Becoming Ambidextrous: A 12-Year Longitudinal Study. In: Edvardsson, B., Tronvoll, B. (eds) The Palgrave Handbook of Service Management. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-91828-6_11
Download citation
DOI: https://doi.org/10.1007/978-3-030-91828-6_11
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-91827-9
Online ISBN: 978-3-030-91828-6
eBook Packages: Business and ManagementBusiness and Management (R0)