Moving from a goods- to a service-oriented organization: a perspective on the role of corporate culture and human resource management

Purpose This study aims to investigate the internal elements that help in the introduction of a service logic into a goods-oriented organization by focusing on corporate culture and human resource management (HRM) practices. Design/methodology/approach The study uses a qualitative single case study research design. Data have been collected through archival data and 14 semi-structured interviews to managers, employees and retailers of a bike manufacturer. Findings The research identifies the following three new internal elements affecting the service orientation of corporate culture of a company with a customization strategy: shared vision built up with the participation of the whole organization; rooting the service orientation into the past history; passion and collaborative study deployed through digital tools. Additionally, related to HRM, the research finds another two elements: emotional salary and that a collective way of understanding and sharing the service infusion is needed. Research limitations/implications Given that this is a qualitative research based on a single case study the identified key elements of corporate culture and HRM practices cannot be used as a predictive tool. However, the depth of evidence is significant and allows analytical generalizations, which enable us to put forward tentative propositions for future research. Practical implications For managers of industrial firms, the identified elements provide an insight on how to smooth the transition from goods-to service-oriented organization. The shift demands the development of an adequate corporate culture and distinctive management of human resources. Originality/value Building on previous literature, the research offers the academic community five new soft elements to be studied in the service infusion process and can guide top managers on how to engage the entire organisation in a service-oriented manner.

What Does it Take to Successfully Implement a Hybrid Offering Strategy? A Contingency Perspective

Since the beginning of the 1990s, selling integrated bundles of goods and services – so-called hybrid offerings – have emerged as a trend in industrial markets. Hybrid offerings are proposed to help companies to differentiate in highly competitive markets and to generate higher margins. Meanwhile, as anecdotal evidence suggests, many companies still fail to offer such hybrid offerings successfully. Hence, the purpose of this study is to test whether a positive relationship between implementing a hybrid offering strategy and companies’ financial success exists and which contingency factors moderate this relationship. By using a cross-industry survey of N=299 European industrial companies from various industries which combine products and services to varying degrees, the study at hand reveals that a hybrid offering strategy is especially successful under conditions of fierce competition. Results further reveal that a company’s proactive decision to implement a hybrid offering strategy (instead of a mere reaction to customer pressure) affects the performance gains that the company can reap from hybrid offerings. Furthermore, results indicate that capabilities such as top-management commitment, modularization, as well as a supporting infrastructure significantly leverage the success of a hybrid offering strategy. These results have important implications for academic knowledge on hybrid offerings as well as the management of service infusion processes in companies.

Driver Configurations for Successful Service Infusion

Manufacturers across many industries use service infusion to address the changing customer demands and improve their competitive position. However, understanding the drivers of successful service infusion is a complex process. Using business model and configuration theories, this study conceptualizes and analyzes the interplay of different driver domains for suppliers, customers, and their business relationships. In particular, we analyze how service offering, service pricing, service capabilities, and the service infusion process interact in affecting service infusion success and failure. 137 interviews relating to 25 business relationships are analyzed via configuration analysis, particularly fuzzy set qualitative comparative analysis (fsQCA). Results show that different equifinal configurations exist (i.e., different ways to succeed with service infusion). We also find that “more is not always better.” For example, service infusion success can be achieved without fully developed service capabilities. In addition, successful configurations are often very similar to those leading to failure. A dyadic analysis demonstrates that customer service capabilities are overall more important than those of suppliers. From these findings, we derive priorities for future research. In particular, our study points toward the need to better understand the interplay between service infusion drivers. Second, we advocate the augmentation of research perspectives in service infusion by taking into account the supplier, customer, and dyadic perspectives. Lastly, the importance of understanding drivers of service infusion failure is highlighted. For managers, our study shows the importance of relational audits as a starting point to deciding on how to infuse services in a business relationship.

Seeking competitive advantage with service infusion: a systematic literature review

Purpose – The purpose of this paper is to analyze how the service infusion literature explains competitive advantage through services. The four strategic management theories – competitive forces, the resource-based view, dynamic capabilities, and relational view – are applied in the analysis. Design/methodology/approach – A systematic literature review analyzes the links between the service infusion and strategy literature. Findings – The review reveals that although discussion of service infusion applies strategic management concepts, the stream lacks rigor with respect to construct definition and justification. Additionally, contextual variables are often missing. The result is an over-emphasis of contextually bound measures, such as technology, and focal actors. Research limitations/implications – The growing trends toward social networks, co-specialization, actor dependency and shared resources encourage service infusion scholars to focus on network-related and relational capabilities, co-opetition, open business models, and relational rent extraction. Furthermore, service infusion research would benefit from considering strategy-based theoretical discussions, constructs, and constraints that would improve the scientific rigor, impact and contribution. Originality/value – This paper represents a systematic attempt to link the service infusion literature with strategic management theories and thoroughly analyzes the knowledge gaps and possible misconceptions.

Adding services to product-based portfolios

Purpose – The purpose of this paper is to explore the implications for the sales function of the infusion of services by formerly product-based firms. In particular, it aims at identifying the changes that need to be made at the sales-function level if the services are to be successfully sold. Design/methodology/approach – This research is an exploratory qualitative case study. Data were collected by focus group discussions and in-depth interviews with relevant managers in three large multinational companies based in Northern Europe, which were pursuing service-led growth. Findings – The effects of service infusion processes on the sales function could be seen with respect to the three parts of the analytical framework: organization, roles, and competences. The results illustrate the need for a changed perspective with respect to all three parts, if a product-based firm is to be successful in the infusing of associated services into its portfolio of offerings. Analysis of the results identifies key operational initiatives that management needs to understand and implement when corporate and marketing strategies increasingly focus on service-led growth. Research limitations/implications – The study was exploratory and vendor centric, which means that it did not quantitatively assess the results or directly involve the customers at whom the services were directed. Also, the choice of business-to-business firms limits the capacity to generalize the findings. Originality/value – Whereas relationship-based and value-based selling are approaches more geared to the sales-force level, the study reported in this paper set out to understand fundamental differences at the sales-function level when firms pursue service-led growth. The findings suggest that the realignment of corporate strategy toward an increased focus on services may have far-reaching implications for the sales function.