Servitization of Small- and Medium-Sized Manufacturing Enterprises: Facing Barriers through the Dortmund Management Model

Abstract

The development of industrial product service systems (IPSS) and the associated increased value proposition through individual service bundles is becoming highly relevant for manufacturing companies. However, the transformation from product- to solution-oriented business models - called Servitization -faces a number of challenges, especially for medium-sized enterprises (SME) in manufacturing sector, which are positioned differently from large companies due to lower financial and personnel resources as well as organizational differences. The literature is increasingly focusing on Servitization, but special requirements for SMEs are not sufficiently considered. Practically relevant approaches are rarely encountered. For this purpose, a literature review was conducted to uncover barriers in Servitization. Using identified barriers and considering SME-specific strengths, a first proposal based on the Dortmund Management Model (DMM) is explained. The result is an aggregated description of barriers addressing relevant scientific fields (e.g. strategies, digitalization, development) to reveal further research needs.