Abstract
It has been recognized that in today’s highly competitive industrial markets, servitization is one of the key strategic choices for many leading manufacturers to gain differentiation from competitors by offering value-added services. To do so, however, requires a service-oriented strategy and the active implementation of this strategy, which comprises a significant shift in the underlying business model, management philosophy and approach. Unfortunately, there has no study examined the organization factors specific to the issues of servitization strategy. Therefore, this paper aims to examine the influence of organization factors on the effectiveness of implementing servitization strategy. Data was collected from three multinational electronics/ICT firms in Japan, respectively, Fujitsu, Toshiba, and Hitachi limited (FTH). Organization answer to a survey included multiple choices and open questions about the perception, process, barriers, and the important factors of implementing servitization strategy. The study result revealed that there were significantly positive influences of organizational factors, such as leadership (17.2%), vision (16.3%, and marketing (9.5%), on the effectiveness of implementing servitization strategy.
Highlights
It has been observed a significant trend in manufacturing industry that the firms are shifting their business from producing goods to offering an integrated package of goods and services
In this study we aimed at exploring the tendency of Japanese electronic/information and communication technology (ICT) firms toward servitization, and identifying factors that influence to the effectiveness of implementing servitization strategy
According to the output of analysis described in the previous section, we found that the factors, like vision, marketing, and leadership are significantly influence to the implementation of servitization strategy
Summary
It has been observed a significant trend in manufacturing industry that the firms are shifting their business from producing goods to offering an integrated package of goods and services. Today, manufacturing industries, especially high-tech firms are under massive pressure and realize the difficulties to achieve their desired profit from only selling goods, which forces them to respond by moving up value chain, seeking to innovate and create more sophisticated products and services so that they do not have to compete on the basis of cost alone [24]. In these circumstances, the concept of servitization becomes an increasingly relevant strategy for manufacturing firms in developed economies to improve their competitive advantage in the market. Both a transfer from the old transaction-based mode of service to continuous connection with the customer and a shift towards process-oriented services for end-users instead of physical goods efficacy is required
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