skip to primary navigationskip to content

Cambridge Service Alliance

developing new understanding and approaches to complex service systems

Studying at Cambridge

 

Another Performance Paradox? A refined view on the performance impact of servitization

last modified Mar 27, 2015 01:52 PM
The May 2012 paper on 'Another performance paradox? A refined view on the performance impact of servitization' by Ivanka Visnjic, Andy Neely and Frank Wiengarten
Another Performance Paradox? A refined view on the performance impact of servitization

May 2012 Paper

 

Case evidence and quantitative studies warn of the mixed impact of services on the financial performance for manufacturing firms. In this study we disentangle different aspects of servitization strategies and their impact on the financial performance of manufacturing firms. Results suggest that service investments represent a prerequisite for growth. When it comes to characteristics of service offering, we identify the negative effect of increasing service “breadth”, measured in number of services offered, while increasing service “depth”, measured in completeness / sophistication of service offering, results in higher profit margins and an increase in market value. Besides the implications for the service business per se, we find that the finetuning of the service portfolio has the effect on the product strategy as well. More specifically, we find that the interplay between service depth (sophisticated services) and investments in product innovation, measured in R&D, is positive only to certain extent; highest levels of service sophistication and focus coupled with high level of product innovation may result in the negative impact on performance as manufacturers spread themselves too thin to achieve excellence on both ends.

[paper]

RSS Feed Latest news

December Newsletter

Dec 05, 2018

Welcome to the December 2018 edition of the Cambridge Service Alliance Newsletter

Gaining Customer Experience Insights That Matter

Nov 26, 2018

New paper on 'Gaining Customer Experience Insights That Matter' by Janet R. McColl-Kennedy, Mohamed Zaki, Katherine N. Lemon, Florian Urmetzer and Andy Neely published at Journal of Service Research

November 2018 Paper

Nov 21, 2018

November 2018 paper on 'Service business model innovation: the digital twin technology' by Veronica Martinez, Audrey Ouyang, Andy Neely, Caroline Burstall and Dav Bisessar

Webinar 12 November 2018 - Co-Creation in Practice: Objectives and Outcomes

Nov 14, 2018

In this webinar, Katharina Greve presents the Alliance September Paper on Co-Creation in Practice.

New EPSRC Doctoral Studentship Opportunity

Nov 09, 2018

New EPSRC Doctoral Studentship Opportunity on Digital technology in the service design and lifecycle with Rolls Royce

View all news

Upcoming events

Ecosystems Strategy One Day Course

Feb 05, 2019

IfM, Cambridge

Upcoming events