Formulating Service-Oriented Strategies for Servitization of Manufacturing Companies

Attribute-based choice model and willingness to pay for industrial services

Purpose

Pricing is widely acknowledged as a market entry challenge for servitising companies. The purpose of this research is to ascertain the attributes that contribute to willingness to pay (WTP) for industrial services and suggest incorporating those attributes to a pricing model.

Design/methodology/approach

Three attributes (Quality of Service, Nearness of Service Provider and Brand Equity of Service Provider) were analyzed at three respective levels to ascertain their importance on WTP. Conventional conjoint analysis (CCA), using an orthogonal design, was the method used. The 346 respondents were decision-makers and top management professionals from various industries.

Findings

Brand Equity emerged as the most significant attribute contributing to WTP, having more than 45% importance – followed by the Quality and Nearness.

Research limitations/implications

The scope of the study is limited to the industries and its Allies. However, the relative importance of the attributes may vary depending on the type of service.

Practical implications

The importance of attributes and their WTP preference helps future researchers create a pricing model involving these attributes. This helps service providers price their services rationally, thus succeeding in servitization.

Social implications

Product life is extended because the manufacturers themselves are servicing it and also help recycle the product with their expertise. Servitization is also helpful for the Indian economy, as it is turning into a manufacturing economy.

Originality/value

This research investigates three attributes that contribute to WTP, in accordance with their level of contribution. It also provides a direction to establish an adequate pricing model for industrial services.

Bibliometric Method for Manufacturing Servitization: A Review and Future Research Directions

To gain sustainable development, it is a trend that manufacturing companies are change the value chain from manufacturing-centric to service-centric. Therefore, the capability of the manufacturing service is as significant as the production ability of enterprises, which reflects the supply chain management (SCM), flexible production, production efficiency, and other indicators of the enterprises. It is the first paper to discuss the sustainability of service-oriented manufacturing using bibliometric analysis. It derives a detailed review and future outlook on the development of manufacturing servitization, indicating the research directions for future development, and provides a valuable reference for researchers in related directions. The bibliometric analysis discusses countries or regions, research areas, authors, keywords, institutions, and journals based on the literature data from the Web of Science (WoS). The results show that research on manufacturing services has gradually received attention since its inception and has become popular since 2008. The papers published from 2008 to 2021 account for 77.62%. The USA is the most studied country on this topic, followed by China and the UK. The International Journal of Production Research regarding the most quantity of articles, and Beihang University is the most influential institution in this field. The largest amount of articles published in the area of “business and economics”, amounting to 1565 articles. In recent years, the main research areas included “Industry 4.0”, “cloud manufacturing (CMfg)”, “Internet of Things (IoT)”, “big data” and “services innovation”. Finally, “digital and intelligent manufacturing” and “product-service systems” are potential research directions for the future.

An insight on B2B Firms in the Age of Digitalization and Paperless Processes

In recent years and due to market demand and environmental regulations, firms have been changing their procedures regarding document production, handling, and filling. There has been a paradigm change in document sustention in order to attain such changes, from paper-based to electronic forms, resulting in the Digitization and Paperless Office Program (DPOP). The literature on digitization and paperless processes is profuse; nonetheless, it is outdated, uses only single or multiple case study approaches, and is limited to specific industries, such as healthcare or higher education. To overcome this gap, this research analyses the current implementation of the DPOP in five major sectors by using a country scale approach; consequently, this research study contributes to strengthening the literature in this area of knowledge. The methodology used is quantitative and is based on a questionnaire distributed to the most important economic sectors (education, health, trade, industry, and services) in Portugal. The results show that a DPOP positively impacts companies, as it increases profitability and, in most cases, is a sine qua non condition for negotiating with clients. Additionally, it favours companies’ image, reduces costs, and contributes to environmental sustainability. This research provides new insights into how firms using a DPOP may contribute to dematerialization and paper consumption reduction. It is also original as it covers multiple sectors using a country approach.