Analysis of a Product-service Association’s Impact on the Organization; an SMI Case

Riad Makdissi,Anita Nehme,Mary Mansour

doi:10.11648/j.ijber.20190806.22

Abstract

Servitization is observed in companies that tend to develop their capabilities, skills and customer relationships to provide services that complement their manufactured products. Services are no longer a distinct category that managers must consider, but rather an omnipresent part of their strategic mission and business planning. The role of corporate culture in the implementation of service strategies is a recurring problem in the Servitization literature, as the assumption is that corporate culture can have a profound impact on the organization’s effectiveness. As a result, manufacturing companies pursuing a Servitization strategy must align their corporate culture, moving from a product-oriented to a service-oriented one. The PSS (Product-Service System), a special case of Servitization, refers to a combination of products and services. This concept includes a competitive strategy focused on service and environmental sustainability in order to differentiate itself from its competitors. This transformational process affects the organizational culture’s area. Based on an action research, we analyzed the impact of the Product-Service Association in a French manufacturing SME Y that has successfully developed product-related services. The methodology is based both on the interviews and on the analysis of secondary data. Our case study around the industrial company Y has thus made us able to justify the theories affirming that the PSS has an impact on an SMI’s organization and culture. We have noticed that the company Y has a product-service oriented culture which is reflected in its speeches and brochures and its internal organization. This culture is customer-oriented and its needs are at the heart of the staff's concerns, as the company always strives to satisfy them and respond to their inquiries. By maintaining a strong collaboration between its members and its customers, Y manages to ensure a customer-oriented culture. This way, Y is well organized and seeks to balance its products and services in order to satisfy its customers, through its Culture Services based on Product expertise.

Highlights

IntroductionOver the last twenty years, with the advent of a real services economy, these have become central to the activities of industrial companies that are increasingly seeking to develop their service offerings [2, 10, 19]
The primary sector of agricultural activities, the secondary sector of industrial activities and the tertiary services sector are the main sectors of economic activity.Nowadays, services are defined by their complementarity with agricultural and industrial activities.Over the last twenty years, with the advent of a real services economy, these have become central to the activities of industrial companies that are increasingly seeking to develop their service offerings [2, 10, 19].these industrial companies provide products and services at the same time
President We noticed that Y’s departments which were concerned by the offer of services are: The 'Quality Service' department, responsible for quality assurance, giving advice and assistance to customers

Summary

Introduction

Over the last twenty years, with the advent of a real services economy, these have become central to the activities of industrial companies that are increasingly seeking to develop their service offerings [2, 10, 19]. These industrial companies provide products and services at the same time. In order to achieve these different benefits and for numerous other reasons, industrial companies are looking to change their perspectives towards the Product-Service system (PSS)

Methods

Results

Conclusion