An attention‐based view on service orientation in the business strategy of manufacturing companies

Abstract

PurposeThis article seeks to answer the following research question: How does the focus of attention and situated attention contribute to the formulation and implementation of the service orientation in the business strategy?Design/methodology/approachStructural equation modelling is used as a research methodology.FindingsThe paper suggests that the formation and implementation of service orientation in the business strategy is influenced strongly by managerial attention.Research limitations/implicationsThe results suggest that a survey is suitable for investigating managerial cognition and attention, but future research should benefit from obtaining data on managerial attention through interviews or secondary data such as company documents.Practical implicationsThe main effect on strategy implementation and the moderating role of situated attention suggest that managers should be aware of the potential inertia by implementing a service‐oriented business strategy. The main effects for strategy formulation suggest that the formulation of a service‐oriented business strategy is triggered through decreasing product margins in the case of product‐oriented companies, whereas it is triggered by increasing customer expectations for service‐oriented companies.Originality/valueThe study examines the moderating effects of focus of managerial attention and situated management attention on the service orientation of business strategy.