scholarly journals Should Manufacturers Support the Entire Product Lifecycle with Services?

2021 ◽  
Vol 13 (5) ◽  
pp. 2493
Author(s):  
Oscar F. Bustinza ◽  
Ferrán Vendrell-Herrero ◽  
Francisco J. Sánchez-Montesinos ◽  
José Antonio Campos-Granados
Keyword(s):  
Service Provision ◽  
Manufacturing Sector ◽  
Qualitative Comparative Analysis ◽  
Service Innovation ◽  
Manufacturing Industries ◽  
Service Development ◽  
Product Lifecycle ◽  
Specific Service ◽  
Heterogeneous Effects ◽  
Product Service

The growing trend to develop product–service innovation (PSI) in manufacturing industries has forced firms to consider the real impact of adding services to their sales portfolio. Literature has shown that PSI implementation has heterogeneous effects on performance as it depends on the service development choice and the specific industry in which firms compete. Moreover, PSI implementation has differing effects on performance depending on the manufacturer’s position in the value ecosystem. Although the heterogeneous PSI–performance relationship has previously been studied in terms of its intensity, research has not yet examined whether services should support specific stages or the entire product lifecycle. For shedding light on this issue, a fuzzy-set qualitative comparative analysis (fsQCA) is carried out on a sample of Basque firms that operate in the machine manufacturing sector. This useful technique uncovers a set of specific service combinations that maximize manufacturers’ profit margin and ratio of solvency. As a result, this study is novel in analyzing the service provision over the entire product lifecycle and reveals that although some service complementarities do exist, single or bundled service specialization outperforms an integral and diversified service approach.

Digital service innovation: a paradigm shift in technological innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marco Opazo-Basáez ◽  
Ferran Vendrell-Herrero ◽  
Oscar F. Bustinza
Keyword(s):  
Technological Innovation ◽  
Qualitative Comparative Analysis ◽  
Service Innovation ◽  
Manufacturing Firms ◽  
Manufacturing Industries ◽  
Necessary Condition ◽  
Content Type ◽  
Digital Service ◽  
Product Innovations ◽  
Computer Based

PurposeExisting innovation frameworks suggest that manufacturing firms have traditionally developed a complementary model of technological innovations comprising process and product innovations (e.g. Oslo Manual). This article presents digital service innovation as a novel form of technological innovation that is capable of enhancing the performance of firms in certain manufacturing industries.Design/methodology/approachDrawing on technological innovation and digital servitization fields of research, this study argues that digital service innovation, in manufacturing contexts, complements traditional sources of technological innovation, so increasing the profit margins of firms. This effect is significant in industries characterized by business-to-business contexts, high presence of link channels and long product life spans (e.g. manufacturing and computer-based industries). Predictions are tested on a unique sample of 423 Spanish manufacturing firms using parametric (t-test) and nonparametric (fuzzy-set qualitative comparative analysis, fsQCA) approaches.FindingsThe results of this analysis show that a necessary condition so that manufacturing firms can increase profits is the deployment of simultaneous process and product innovations. It also reveals that optimal configuration requires that digital service innovation be undertaken, particularly in machinery and computer-based manufacturing industries. Hence, all three sources of technological innovation are brought together in order to reach the highest levels of company performance. The evidence suggests that technological innovation and digital servitization are closely interrelated in highly innovative manufacturing contexts.Originality/valueThis study's originality and value reside in the fact that it reveals the existence of firms incorporating digital service innovation – a new, technological innovation dimension that challenges existing innovation frameworks – to complement traditional technological innovation sources, namely process and product innovation. Moreover, the study conceptualizes and empirically tests the value-adding role of digital services in firms' technological innovation portfolio.

scholarly journals Rational Intervention Public Policy for Public Service Innovation

2021 ◽  
Vol 5 (2) ◽  
pp. 182
Author(s):  
Dewi Maharani ◽  
Lesmana Rian Andhika
Keyword(s):  
Comparative Analysis ◽  
Citizen Participation ◽  
Public Service ◽  
Qualitative Comparative Analysis ◽  
Service Innovation ◽  
Analysis Data ◽  
Cross Sectional Study ◽  
Service Development ◽  
Cross Sectional ◽  
Government Institutions

This study aims to discuss and compare population administration innovations in two different regencies to gain an understanding of how policies can intervene in public service innovations. Innovation is dependent on government policy as a guide for good public service development strategies. Policy intervention in public service innovation gives special attention to the coherent implementation of public service innovations. The policy will affect further innovation development alth o ugh i t c an be exc lud e d f ro m s o me i nnovati o n pro grams . Therefore, this research compares the innovation efforts of population administration in two different regencies to gain a better understanding of how policies intervene in public service innovation. This research was conducted in the Aceh Tenggara and Majalengka regencies in May-June 2019. Qualitative methods were used in this research with a comparative analysis (Qualitative Comparative Analysis). Data was obtained through a cross-sectional study and data analysis using a set and concept technique. With a theoretical guide developed by Hartley (2005), this research provides information that not all regency (government institutions) can innovate for a variety of reasons, and that decision-makers must be transformative leaders for their region in order to bring out the idea of innovation. In addition, managers should be able to translate policy intent and objectives with service programs. Further development of public service innovations and citizen participation is needed as respondents and external supervisors. That way policy interventions can provide opportunities for change in government institutions by reviewing policy goals and objectives, as well as the linkage factor between local and national policies being the main consideration.

scholarly journals Digital Product–Service Innovation and Sustainability: A Multiple-Case Study in the Capital Goods Industry

2021 ◽  
Vol 13 (11) ◽  
pp. 6342
Author(s):  
Alberto de la Calle ◽  
Inmaculada Freije ◽  
Aitor Oyarbide
Keyword(s):  
Supply Chain ◽  
Service Innovation ◽  
Multiple Case Study ◽  
Bottom Line ◽  
Capital Goods ◽  
Case Study Methodology ◽  
Digital Product ◽  
Product Service ◽  
Multiple Case

Digitalisation, servitisation, and sustainability are keywords for the current and future development of the manufacturing industry. However, their interaction in the context of an organisation and its supply chain is unclear. This study examines how digital product–service innovation (PSI) or digital servitisation affects sustainability, considering the triple bottom line perspective, as well as identifies the underlying causes. Moreover, this study analyses the role played by supply-chain strategic collaboration, both internal and external to the company, in digital PSI and sustainability. Using a multiple-case study methodology and B2B market perspective, four companies belonging to the capital goods industry were analysed. Our findings indicate that digitalisation is leveraging both basic and advanced services in their impact on economic and environmental sustainability dimensions, while the results are limited in social sustainability. In addition, supply-chain integration is relevant for digital PSI. Internal integration is required for both basic and advanced services, while external integration is especially important in advanced services. We conclude by emphasising that companies should acquire digital capabilities to develop defensive and offensive business strategies that ultimately affect sustainability.

scholarly journals Designing for the satisfaction of high-level needs

2014 ◽  
Vol 26 (6) ◽  
pp. 639-649 ◽  
Author(s):  
Petter Stenmark ◽  
Johan Lilja
Keyword(s):  
Customer Satisfaction ◽  
Design Methodology ◽  
Service Innovation ◽  
New Product ◽  
Service Development ◽  
Content Type ◽  
The Creation ◽  
High Level ◽  
Satisfaction Surveys

Purpose – The purpose of this paper is to introduce a methodology that can support the process of understanding and designing for the satisfaction of high-level needs in practice. The satisfaction of high-level needs has seldom been in focus when it comes to customer satisfaction surveys or the process of new product or service development. However, needs do occur on various levels, and the satisfaction of high-level needs actually appears to have the greatest potential for the creation of loyalty among customers and customer satisfaction. The satisfaction of high-level needs has furthermore been pointed out as a strategy for the creation of attractive quality. Design/methodology/approach – The paper is based on literature studies and the application of the Ideation Need Mapping (INM) methodology in a specific case. Findings – The paper presents the INM methodology that could be used for guiding product and service innovation in practice. More specifically, the methodology supports the process of understanding and designing for the satisfaction of high-level needs. Originality/value – This paper aims to contribute to envisioning and demonstrating how the understanding of, and design for, satisfaction of high-level needs can be done in practice.

Partial Completion as a Nonprofit Strategy

2021 ◽  
Author(s):  
Can Zhang ◽  
Atalay Atasu ◽  
Karthik Ramachandran
Keyword(s):  
Nonprofit Organizations ◽  
Service Provision ◽  
Problem Definition ◽  
Product Service ◽  
Service Portfolio ◽  
Wide Range ◽  
Partial Completion ◽  
Innovative Solution ◽  
Managerial Implications ◽  
Level 3

Problem definition: Faced with the challenge of serving beneficiaries with heterogeneous needs and under budget constraints, some nonprofit organizations (NPOs) have adopted an innovative solution: providing partially complete products or services to beneficiaries. We seek to understand what drives an NPO’s choice of partial completion as a design strategy and how it interacts with the level of variety offered in the NPO’s product or service portfolio. Academic/practical relevance: Although partial product or service provision has been observed in the nonprofit operations, there is limited understanding of when it is an appropriate strategy—a void that we seek to fill in this paper. Methodology: We synthesize the practices of two NPOs operating in different contexts to develop a stylized analytical model to study an NPO’s product/service completion and variety choices. Results: We identify when and to what extent partial completion is optimal for an NPO. We also characterize a budget allocation structure for an NPO between product/service variety and completion. Our analysis sheds light on how beneficiary characteristics (e.g., heterogeneity of their needs, capability to self-complete) and NPO objectives (e.g., total-benefit maximization versus fairness) affect the optimal levels of variety and completion. Managerial implications: We provide three key observations. (1) Partial completion is not a compromise solution to budget limitations but can be an optimal strategy for NPOs under a wide range of circumstances, even in the presence of ample resources. (2) Partial provision is particularly valuable when beneficiary needs are highly heterogeneous, or beneficiaries have high self-completion capabilities. A higher self-completion capability generally implies a lower optimal completion level; however, it may lead to either a higher or a lower optimal variety level. (3) Although providing incomplete products may appear to burden beneficiaries, a lower completion level can be optimal when fairness is factored into an NPO’s objective or when beneficiary capabilities are more heterogeneous.

Sustainability assessment in the manufacturing industry: a review of recent studies

2018 ◽  
Vol 25 (8) ◽  
pp. 3162-3179 ◽  
Author(s):  
Shamraiz Ahmad ◽  
Kuan Yew Wong
Keyword(s):  
Manufacturing Industry ◽  
Sustainability Assessment ◽  
Manufacturing Sector ◽  
Social Indicators ◽  
Sustainable Manufacturing ◽  
Manufacturing Industries ◽  
Bottom Line ◽  
Content Type ◽  
The Status ◽  
Different Levels

Purpose The purpose of this paper is to review and analyze the recent sustainability assessment studies in the manufacturing industry from the triple-bottom-line (TBL) perspective. This paper aims to depict the status quo of practical sustainability assessment, summarize the different levels and boundaries of evaluation, and highlight the difficulties and further improvements needed to make the assessment more effective in the manufacturing industry. Design/methodology/approach Four keywords, namely, sustainability assessment, sustainable manufacturing, TBL and green production, were used to explore and find the relevant articles. First, this paper systematically reviewed the studies and analyzed the different levels and boundaries of sustainability assessment. Following this, the reviewed studies were critically discussed along with their merits and shortcomings. Findings The review showed that most of the sustainability assessment studies were conducted on product, company and process levels in the manufacturing industry. Nevertheless, there is still a need to focus more on plant and process level assessments to achieve the TBL objectives. Environmental assessment is comparatively matured in manufacturing industries. However, from the economic and social viewpoints, only cost analysis and workers’ safety, respectively, were considered in most of the studies. The economic and social indicators need to be more inclusive and should be validated and standardized for manufacturing industries. Originality/value Unlike previous sustainability assessment reviews in manufacturing industries which were mostly based on life cycle assessment, this paper has included environmental, social and economic aspects in one comprehensive review and focused on recent studies published from 2010 to 2017. This paper has explored the recent sustainability assessment trends and provided insights into the development of sustainability assessment in the manufacturing sector.

scholarly journals Incremental and radical open service innovation

2018 ◽  
Vol 32 (2) ◽  
pp. 101-112 ◽  
Author(s):  
Per Myhren ◽  
Lars Witell ◽  
Anders Gustafsson ◽  
Heiko Gebauer
Keyword(s):  
Service Innovation ◽  
Group Development ◽  
Case Analysis ◽  
Team Development ◽  
Service Development ◽  
New Service Development ◽  
Content Type ◽  
Open Service ◽  
Cross Case Analysis

Purpose Open service innovation is an emergent new service development practice, where knowledge on how to organize development work is scarce. The purpose of the present research is to identify and describe relevant archetypes of open service innovation. The study views an archetype as an organizing template that includes the competence of participants, organizing co-creation among participants and ties between participants. In particular, the study’s interest lies in how open service innovation archetypes are used for incremental and radical service innovation. Design/methodology/approach For the research, a nested case study was performed, in which an industrial firm with nine open service innovation groups was identified. Forty-five interviews were conducted with participants. For each case, first a within-case analysis was performed, and how to perform open service innovation in practice was described. Then, a cross-case analysis identifying similarities and differences between the open service innovation groups was performed. On the basis of the cross-case analysis, three archetypes for open service innovation were identified. Findings The nested case study identified three archetypes for open service innovation: internal group development, satellite team development and rocket team development. This study shows that different archetypes are used for incremental and radical service innovation and that a firm can have multiple open service innovation groups using different archetypes. Practical implications This study provides suggestions on how firms can organize for open service innovation. The identified archetypes can guide managers to set up, develop or be part of open service innovation groups. Originality/value This paper uses open service innovation as a mid-range theory to extend existing research on new service development in networks or service ecosystems. In particular, it shows how open service innovation can be organized to develop both incremental and radical service innovations.

scholarly journals Characterizing the Difference between Indirect and Direct CO2 Emissions: Evidence from Korean Manufacturing Industries, 2004–2010

2018 ◽  
Vol 10 (8) ◽  
pp. 2711 ◽  
Author(s):  
Sinwoo Lee ◽  
Dong-Woon Noh ◽  
Dong-hyun Oh
Keyword(s):  
Carbon Emissions ◽  
Productivity Growth ◽  
Manufacturing Sector ◽  
Manufacturing Industries ◽  
Productivity Index ◽  
End User ◽  
Shipbuilding Industry ◽  
Industrial Sectors ◽  
Green Productivity ◽  
The Difference

This study measures and decomposes green productivity growth of Korean manufacturing industries between 2004 and 2010 using the Malmquist-Luenberger productivity index. We focus on differences in the measures of productivity growth by distinguishing carbon emissions from either end-user industries or the electricity generation industry. Empirical results suggest three main findings. First, the efficiency of total emissions is higher than that of direct emissions except for the shipbuilding industry. Second, green productivity in the manufacturing sector increased during the study period. Finally, green productivity depends on the indirect emissions of each industry. These results indicate that policymakers need to deliberately develop policy tools for mitigating carbon emissions of the manufacturing industrial sectors based on our empirical findings.

scholarly journals Are the determinants of markup size industry-specific? The case of Slovenian manufacturing firms

2011 ◽  
Vol 58 (2) ◽  
pp. 229-244 ◽  
Author(s):  
Nina Ponikvar ◽  
Maks Tajnikar
Keyword(s):  
Manufacturing Sector ◽  
Manufacturing Firms ◽  
Manufacturing Industries ◽  
Dynamic Panel ◽  
Pricing Policy ◽  
Large Variability ◽  
Oligopoly Theory ◽  
Determination Process ◽  
Precise Role

The aim of this paper is to identify factors that affect the pricing policy in Slovenian manufacturing firms in terms of the markup size and, most of all, to explicitly account for the possibility of differences in pricing procedures among manufacturing industries. Accordingly, the analysis of the dynamic panel is carried out on an industry-by-industry basis, allowing the coefficients on the markup determinants to vary across industries. We find that the oligopoly theory of markup determination for the most part holds for the manufacturing sector as a whole, although large variability in markup determinants exists across industries within the Slovenian manufacturing. Our main conclusion is that each industry should be investigated separately in detail in order to assess the precise role of markup factors in the markup-determination process.

scholarly journals The Effect of Energy Consumption on Output: A Panel Data Study of Manufacturing Industries in Egypt

2020 ◽  
Vol 9 (3) ◽  
pp. 490
Author(s):  
Iman Al-Ayouty
Keyword(s):  
Energy Consumption ◽  
Energy Use ◽  
Manufacturing Sector ◽  
Panel Member ◽  
Electrical Energy ◽  
Petroleum Products ◽  
Manufacturing Industries ◽  
Electrical Machinery ◽  
Output Elasticity ◽  
Energy Products

Subsidizing electricity and non-electrical energy products has affected manufacturing output in Egypt, especially given the structure of Egypt’s manufacturing sector which leaning heavily towards capital- and energy-intensive products. This effect is captured in a production function estimated for the twenty industries making up Egypt’s manufacturing sector over the period 2002-2016. With homogeneous parameters, the estimated output elasticity of energy is 0.28. With panel member parameter heterogeneity, the output elasticity of energy is positive and statistically significant in ten manufacturing industries. Negative and statistically significant elasticity is however found in refined petroleum products, fabricated metal products, and electrical machinery and equipment. This indicates suboptimal energy use. Elasticity is also negative, though statistically insignificant, in: textiles, basic metals, and “other manufacturing”. Except for “other manufacturing”, industries of negative elasticity are all energy-intensive.  Moreover, refined petroleum, fabricated metals and basic metals are pollution-intensive. A priority policy measure is to remove subsidies from energy inefficient and polluting industries as opposed to mere ‘across-the-board’ removal. Keywords: energy consumption; manufacturing industries; energy- and pollution intensive; Egypt

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