Barriers to smart services for manufacturing companies – an exploratory study in the capital goods industry

Abstract

PurposeThe purpose of this paper is to identify and investigate non-technical barriers for smart services in the capital goods industry.Design/methodology/approachA multiple methodology approach is adopted. First, qualitative workshops and interviews were conducted with 14 experts from five companies. The findings generated subsequently provided a basis for a large-scale quantitative survey of manufacturing company service representatives in the capital goods industry, the data from which were analyzed using explorative factor analysis.FindingsIn total, 25 items that represent barriers to smart service businesses were identified, using qualitative research. Large-scale quantitative research revealed 24 items structured into four factors. Additionally, the respondents’ assessment of the individual barriers’ impact on their smart service businesses is presented.Research limitations/implicationsThe study focuses on manufacturing companies in the capital goods industry, mainly, in the European countries. Caution should be exercised in seeking to generalize the results to other industries. The findings should be confirmed with subsequent confirmatory analyses using additional data.Practical implicationsThe authors’ findings provide a comprehensive list and classification of barriers, as well as an assessment of their severity, serving as a practical guideline for managers.Originality/valueThis paper explores the barriers to smart services from a provider’s perspective. Its holistic approach and use of large-scale quantitative data qualify it as one of the first studies of this kind.