Exploring servitization in China: Challenges of aligning motivation, opportunity and ability in coordinating an external service partner network
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 6 November 2017
Abstract
Purpose
Previous research has predominately focused on the servitization strategies of western manufacturers in advanced economies, neglecting the potential for servitization in those which are emerging, such as China. The purpose of this paper is to explore the role of the external service partner network of a European manufacturer providing services in China, in order to develop a better understanding of the resulting and associated challenges.
Design/methodology/approach
An in-depth case study approach was used to examine the parent company, its subsidiary in China and the related service partner network. Data collection involved all three actors and took place in Denmark and China.
Findings
The findings suggest that motivation, opportunity and ability (MOA) need not only be mutually reinforcing for the organization attempting to move toward services but also aligned between organizational units, as well as with the service partner network. Furthermore, the findings suggest that while service partners are typically closer to the market, they may not be able to deliver the higher value-added services requiring customization.
Research limitations/implications
This study is limited to a single manufacturer attempting servitization in China. Future studies may consider other case firms in other markets.
Practical implications
The MOA framework provides a basis for understanding the managerial challenges of aligning and coordinating the MOA elements amongst different actors.
Originality/value
This paper contributes by exploring servitization in an emerging market through the MOA framework in order to better understand the challenges and complexities. Servitization is found to be a dynamic phenomenon which should be understood as a movement that is also dependent on an external service partner possessing the necessary capabilities. In turn, this requires understanding the MOAs of all actors in a network and how they may be influenced in order for the MOA elements to be mutually reinforcing.
Keywords
Acknowledgements
The work presented here was undertaken at Copenhagen Business School as part of the “Driving Competitiveness through Servitization” project, which is supported by the Danish Industry Foundation (Project No.: 2014-0095). The authors would like to acknowledge the research support provided by Anders Park Egedal, Kai Inga Basner and Lauren Pflueger. Earlier versions of this paper were presented at the EurOMA 2015 Conference in Neuchatel, Switzerland and at the Academy of Management 2016 Conference in Anaheim, CA, USA. The authors are grateful for the comments of the participants at these conferences. The authors also acknowledge the constructive comments provided on earlier drafts by Jan Mouritsen, Dane Pflueger, Christian Kowalkowski, Daniel Kindström and Alexey Sklyar; all remaining errors remain the authors’ own. Lastly, the authors acknowledge the many helpful comments from the special issue editors and the two anonymous reviewers.
Citation
Raja, J.Z. and Frandsen, T. (2017), "Exploring servitization in China: Challenges of aligning motivation, opportunity and ability in coordinating an external service partner network", International Journal of Operations & Production Management, Vol. 37 No. 11, pp. 1654-1682. https://doi.org/10.1108/IJOPM-12-2015-0755
Publisher
:Emerald Publishing Limited
Copyright © 2017, Emerald Publishing Limited