TY - JOUR
T1 - Product lifespan
T2 - the missing link in servitization
AU - Vendrell-Herrero, Ferran
AU - Vaillant, Yancy
AU - Bustinza-Sánchez, Oscar F.
AU - Lafuente, Esteban
PY - 2021/1/7
Y1 - 2021/1/7
N2 - By drawing on a business model lens, this study proposes that the competitive performance of servitization is higher for manufacturing firms selling long-lifespan products since they better develop the key elements required for transitioning towards integrated Business to Business (BtoB) solutions delivery. Additionally, the study argues that the moderation role of product lifespan is stronger in advanced stages of servitization as it reduces replacement and information costs. To test these hypotheses, this study merges a unique survey of Manufacturing Multinational Enterprises (MMNEs) and the Lifespan Database for Vehicles, Equipment and Structures (LiVES). Results show a positive moderating effect of product lifespan in the relationship between servitization and performance. Following this finding, across firms with high-intensity servitization, the firm that sells longest-lifespan products is predicted to capture most value from servitization. Overall, the present study suggests that implementation of recurrent services during an extended product lifecycle provides an opportunity for BtoB solutions delivery and product usage optimization. By including product lifespan in the equation, we improve understanding of why servitization is an excellent mechanism for managing long-lasting industrial relationships, and explain why servitization boosts performance in some manufacturing industries but has a neutral effect on others.
AB - By drawing on a business model lens, this study proposes that the competitive performance of servitization is higher for manufacturing firms selling long-lifespan products since they better develop the key elements required for transitioning towards integrated Business to Business (BtoB) solutions delivery. Additionally, the study argues that the moderation role of product lifespan is stronger in advanced stages of servitization as it reduces replacement and information costs. To test these hypotheses, this study merges a unique survey of Manufacturing Multinational Enterprises (MMNEs) and the Lifespan Database for Vehicles, Equipment and Structures (LiVES). Results show a positive moderating effect of product lifespan in the relationship between servitization and performance. Following this finding, across firms with high-intensity servitization, the firm that sells longest-lifespan products is predicted to capture most value from servitization. Overall, the present study suggests that implementation of recurrent services during an extended product lifecycle provides an opportunity for BtoB solutions delivery and product usage optimization. By including product lifespan in the equation, we improve understanding of why servitization is an excellent mechanism for managing long-lasting industrial relationships, and explain why servitization boosts performance in some manufacturing industries but has a neutral effect on others.
KW - Business-to-Business
KW - Competitive performance
KW - Product lifespan
KW - Servitization
KW - Solution business models
UR - http://www.scopus.com/inward/record.url?scp=85099218448&partnerID=8YFLogxK
U2 - 10.1080/09537287.2020.1867773
DO - 10.1080/09537287.2020.1867773
M3 - Article
SN - 0953-7287
JO - Production Planning & Control
JF - Production Planning & Control
ER -