TITLE:
Organizational Factors to the Effectiveness of Implementing Servitization Strategy
AUTHORS:
Zahir Ahamed, Akira Kamoshida, Takehiro Inohara
KEYWORDS:
Servitization; Service Design; Strategy Implementation; Organizational factors; Case Study
JOURNAL NAME:
Journal of Service Science and Management,
Vol.6 No.2,
June
17,
2013
ABSTRACT: It has been recognized
that in today’s highly competitive industrial markets, servitization is one of
the key strategic choices for many leading manufacturers to gain
differentiation from competitors by offering value-added services. To do so,
however, requires a service-oriented strategy and the active implementation of
this strategy, which comprises a significant shift in the
underlying business model, management philosophy and approach. Unfortunately,
there has no study examined the organization factors specific to the issues of
servitization strategy. Therefore, this paper aims to examine the influence of
organization factors on the effectiveness of implementing servitization
strategy. Data was collected from three multinational electronics/ICT firms in Japan, respectively, Fujitsu, Toshiba, and
Hitachi limited (FTH). Organization answer to a survey included multiple
choices and open questions about the perception, process, barriers, and the
important factors of implementing servitization strategy. The study result
revealed that there were significantly positive influences of organizational
factors, such as leadership (17.2%), vision (16.3%, and marketing (9.5%), on
the effectiveness of implementing servitization strategy.