Identifying (territorial) tensions in the servitized value chain

Jamie Burton, V. Story, Judith Zolkiewski, C. Raddats, T. Baines, D Medway

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Purpose: To understand the tensions that servitization activities create between actors within networks.Design/methodology/approach: Interviews were conducted with manufacturers, intermediaries and customers across a range of industrial sectors.Findings: Tensions relating to two key sets of capabilities are identified: in developing or acquiring (i) operant technical expertise and (ii) operand service infrastructure. The former tension concerns whom knowledge is co-created with and where expertise resides. The latter involves a territorial investment component; firms developing strategies to acquire greater access to, or ownership of, infrastructures closer to customers. Developing and acquiring these capabilities is a strategic decision on the part of managers of servitizing firms, in order to gain recognized power and control in a particular territory. Originality/value: This paper explores how firms’ servitization activities involve value appropriation (from the rest of the network), contrasting with the narrative norm for servitization: that it creates additional value. There is a need to understand the tensions that servitization activities create within networks. Some firms may be able to improve servitization performance through co-operation rather than competition, generating co-opetitive relationships. Others may need to become much more aggressive, if they are to take a greater share of the ‘value’ from the value chain.
Original languageEnglish
Title of host publicationProceedings of the 3rd Spring Servitization Conference, 18th-20th May, 2015, Aston Business School, Birmingham, U.K.
EditorsT Baines
Place of PublicationBirmingham
PublisherAston Business School
Publication statusPublished - 18 May 2015
EventThe 3rd Spring Servitization Conference - Aston Business School, Birmingham, U.K.
Duration: 18 May 201520 Dec 2015

Conference

ConferenceThe 3rd Spring Servitization Conference
CityAston Business School, Birmingham, U.K.
Period18/05/1520/12/15

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