Service growth in product firms: Past, present, and future

Christian Kowalkowski,Heiko Gebauer,Rogelio Oliva

doi:10.1016/j.indmarman.2016.10.015

Christian Kowalkowski, Heiko Gebauer + Show 1 more

Open Access

https://doi.org/10.1016/j.indmarman.2016.10.015

Copy DOI

Abstract

Service growth in product firms is one of the most active service research domains and is open to a variety of conceptualizations. This article provides a critical inquiry into the past, present, and future of the research domain. The evolution of the research on service growth is discussed in two phases: (1) setting the boundaries of the research domain, and (2) emergence of the conceptual foundation. We find that while research in this area has a well-established tradition in terms of output, theoretically it is still largely in a ‘nascent’ phase. Next, we highlight the contributions of the papers in this special section, emphasizing their challenges to prevailing assumptions in the research domain. We conclude by identifying, from the contributions to this special section, suggested themes for further research on service growth: the assessment of empirical evidence of the impact of service growth on firm performance, the role of merger & acquisitions in the service growth strategy, the exploration of single/multiple positions along the transition line, the process of adding or removing services, and expanding the context of service growth beyond product manufacturing firms.

Highlights

Service growth in product firms has become one of the most active service research domains, to the point that it has been identified as a strategic research priority (Ostrom et al, 2015)
Service growth strategy was identified as a recurring phenomenon, and the boundary of the research domain was established during the last two decades of the last century, in what we call the first phase of the research evolution
While servitization today has become almost synonymous with service growth in product firms, Vandermerwe and Rada regard it as a competitive tool relevant for companies in all industries on a global scale

Summary

Introduction

Service growth in product firms has become one of the most active service research domains, to the point that it has been identified as a strategic research priority (Ostrom et al, 2015). This domain is concerned with product firms shifting from developing, manufacturing, and selling products to innovating, selling, and delivering services Davies, 2004; Gebauer, Edvardsson, Gustafsson & Witell, 2010a; Oliva & Kallenberg, 2003; Tukker, 2004; Ulaga & Reinartz, 2011) This shift towards services is typically a strategic response to reaching the maturity phase in the product lifecycle and, facing limited revenue growth. Critical analysis suggests that despite tremendous research interest and output, which suggest that the research tradition is well established, the research domain is still in a theoretical and methodological nascent stage

Phase 1: setting the boundaries of the research domain

Phase 2: emergence of the conceptual foundation

Present

Future