Towards solution based thinking: Characteristics of servitization at Hungarian manufacturing companies

Krisztina Demeter,Levente Szász

doi:10.5771/0949-6181-2013-3-309

Krisztina Demeter, Levente Szász

Open Access

https://doi.org/10.5771/0949-6181-2013-3-309

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Abstract

The main purpose of the article is to describe the servitization process of Hungarian manufacturing companies based on data of the Hungarian Competitiveness research. Servitization aims at supplying a bundle of products and services that offers complete solutions for customers. In this paper we analyze to what extent characteristics of ser-vitization in developed countries are also applicable in a developing macro-environment, i.e. in Hungary. Results of our analysis show that, generally, Hungarian manufacturing companies do not place strategic emphasis on services. Nevertheless, our sample contains a number of manufacturing companies that have taken actions to servitize both on strategic and operational level. However, in case of these companies financial benefits attributable to higher levels of servitization do not yet seem to materialize.

Highlights

Our paper focuses on the servitization of manufacturing companies
We found no significant difference between the groups of “Servitized companies” and “Traditional manufacturers” in terms of the efforts made to implement servitization related action programs (ANOVA at p=0.05 level)
Using analysis of variance (ANOVA) we examined if there are significant differences between the two groups in respect of the strategic and operational role of services

Summary

Introduction

Our paper focuses on the servitization of manufacturing companies. Servitization denotes the process by which the output of manufacturing companies is shifting from delivering pure physical products towards offering a bundle of products and services. Referring to the macro level, Evans and Berman (1987) use the term of ”hidden service sector” arguing that a significant portion of services in an economy is provided by manufacturing companies, which is not documented in official statistics. Starting from the early ‘90s several papers have been focusing on the servitization of manufacturing companies These studies have primarily dealt with defining the concept of servitization and its major forms, identified the main drivers and barriers of servitization, and offered several methods to overcome these barriers (Baines et al 2009). Literature places higher emphasis on researching macro and micro level factors that may affect servitization These papers, focus mainly on developed countries, and are usually based on case studies (Baines et al 2009)

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Discussion

Conclusion