Servitization and organizational performance in the machinery and equipment sector
The role of manufacturing in value chains has become less expressive in the face of the trend of stagnating demand, commoditization of products, and declining profitability. Confronted with this challenging scenario, a growing number of companies seek to add value to their businesses embarking on th...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Fundação Getulio Vargas, Escola de Administração de Empresas de São Paulo
2018-10-01
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| Series: | RAE: Revista de Administração de Empresas |
| Subjects: | |
| Online Access: | http://www.scielo.br/pdf/rae/v58n5/en_0034-7590-rae-58-05-0475.pdf |
| Summary: | The role of manufacturing in value chains has become less expressive in the face of the trend of stagnating demand, commoditization of products, and declining profitability. Confronted with this challenging scenario, a growing number of companies seek to add value to their businesses embarking on the approach of "servitization" (offering product-service solutions). However, the literature on this subject is divided on the effectiveness of this approach since not always it brings the expected impact (service paradox). Given this, the work quantitatively evaluated this relationship in manufacturing firms of the Machinery and Equipment industry. Data on the different categories of services they have developed and their impacts were collected. It was verified that there is a positive and relevant relationship between the offer of most of these categories and the organizational performance, which indicates that identifying and developing a consistent service bundle can lead to an effective servitization strategy. |
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| ISSN: | 0034-7590 2178-938X |