Customer-focused and service-focused orientation in organizational structures

Purpose – The paper aims to provide a better understanding of the interrelatedness of customer and service orientations in the organizational structures of capital goods manufacturing companies. Design/methodology/approach – A qualitative, multi-case research design was employed using 36 European capital goods manufacturing companies. Findings – This article explored four different patterns of how companies move from being product-focused to service-focused, and from having an organizational structure that is geographically focused to one that is customer-focused. The four patterns are termed as follows: emphasizing service orientation, service-focused organizational structure, emphasizing customer orientation, and customer-focused organizational structure. Research limitations/implications – Although the study is based on 36 case studies, the external validity (generalizability) of the findings could not be assessed accurately. Practical implications – The description of the four organizational approaches offers guidance for managers to restructure their companies towards service and customer orientations. Originality/value – The article links the relatively independent discussions of service and customer orientations in the context of organizational structures. The four patterns provide a better understanding of how capital goods manufacturers integrate increased customer and service focuses in their organizational structures.peerReviewe

A Reconceptualization of Manufacturers' Service Strategies

Purpose: As part of service infusion, manufacturers use services to differentiate their products and provide growth. Although several attempts have been made to classify manufacturers' service strategies and offerings, most have been based on small purposive samples. The purpose of this article is to create a generic typology of manufacturers' service strategies. Methodology/approach: The unit of analysis was the manufacturer or strategic business unit. The data collection was based on a survey of 145 B2B manufacturers in the United Kingdom. Findings: Three categories of service offerings were identified: product-attached services, operations services on own products, and vendor independent operations services. These categories are used to specify three generic service strategies: Services Doubters, for whom services are not a strong differentiator with no focus on any category of service offerings; Services Pragmatists, for whom product-attached services are a key differentiator; Services Enthusiasts, for whom services are both a product differentiator and an enabler of growth, with all three categories of service offerings important. Research implications: Whereas prior studies tend to use the concepts of service strategies and categories of service offerings interchangeably, we find empirical support for the importance of making a clear distinction between the two concepts. Practical implications: Manufacturers can be classified according to their services strategies. For Services Doubters service infusion is unlikely to be an appropriate approach to creating differentiation. For Services Pragmatists services play a crucial role in creating product differentiation. Services Enthusiasts use services to both differentiate their own products and also develop services-led growth. Originality/value/contribution: The paper exposes an ambiguity in the extant literature, with a manufacturer's categories of service offerings used as proxies for service strategies. A new typology of service strategies is presented based on categories of service offerings, which provides insight into how manufacturers infuse services.peerReviewe

Service innovation in business-to-business firms

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Could representations influence strategy?

A central question in industrial marketing is whether the form in which the external environment of a firm is represented influences the marketing strategy. This influence has been studied generally through case study research, and quantitative evidence is limited. In response to this limitation, this paper reports on a quasi-experiment investigating whether market representations have a constructive aspect in business. Empirically, this study compares two types of ostensive and performative market representations—service focus and product differentiation—in order to test for influence exacted by industrial marketing on strategies. Results indicate that service focus is selected when market representations rely on agency in firms (i.e., performative), and product strategies are selected when structures are emphasized (i.e., ostensive). This paper contributes to methodology development by expanding the link between a case study approach and quasi-experiments explaining how quasi-experiments can replicate findings in industrial marketing.peerReviewe

A national-international comparison

Purpose: The existing literature on key account management (KAM) has focused more on sales forces and management levels than on their evolution. This study explores how sales activities can be coordinated to accommodate national and international KAM programs. Design/methodology/approach: A longitudinal study of the industrial conglomerate ABB 1996–2008. Findings: The diversity associated with geography and product complexity creates demands for a more flexible organization that can provide a more complete offering portfolio across national boundaries and still handle the demands of local organizations. In addition to internal organizational contingencies, the key factors and driving forces for the development of KAM programs are the marketing and purchasing strategies that buyer and seller firms perceive and encounter. Research limitations/implications: The data is limited to one corporation and some of its key customers in different industries. Although the internal and construct validity of the findings are strong, the external validity cannot be assessed precisely. Originality/value: The 12-year study brings valuable insights to the development of KAM programs in multinational corporations and addresses coordination issues related to geographical and product complexity.peerReviewe

Synergy or oxymoron?

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ICT as a catalyst for service business orientation

Purpose – Information and communication technology (ICT) is a key enabler for new product- and process-oriented services. The article investigates how ICT can enable service differentiation and in doing so act as a catalyst for a service business orientation. Design/methodology/approach – A qualitative, multi-case research design with eight multinational goods manufacturers. Findings –Two distinct types of service-oriented differentiation are identified; services in support of the product (SSP), and services in support of the client’s actions (SSC). The study finds that SSC have the largest positive impact on firms’ service business orientation. Research limitations/implications – Western firms in a limited sample of industries are studied. Furthermore, the service business orientation construct does not include any measurements of service profitability or impact on overall competitive advantage. Practical implications – To various extend, successful firms are likely to pursue both SSP and SSC differentiation traits through ICT. The two options are interdependent and the framework presented helps managers to understand both key specificities and their interrelatedness. Originality/value – The study contributes to theory on service strategies by specifically focusing on the enabling role of ICT for new services and its effects on each of the three dimensions of the service business orientation construct.peerReviewe

A dynamic capabilities approach

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Empirical findings from the manufacturing industry

Purpose – The purpose of this paper is to explore strategies for visualizing the value of service-based offerings in a B2B context. By taking a process perspective on the offering life cycle, this paper also aims at distinguishing which visualization strategies are most appropriate using at which life-cycle stages. Design/methodology/approach – The study employed a qualitative, multiple-case study research design involving five manufacturing firms. Findings – Primary findings are that firms need to make use of several different visualization strategies depending on, among other things, the key stakeholders and also where the firm's offering is currently positioned in the service-based offering life cycle. Research limitations/implications – While the empirical data is from only one sector – i.e. manufacturing – managers from other B2B sectors should have an interest in the results and the key aspects identified. Further research could also establish linkages to performance metrics. Originality/value – Visualization strategies have been relatively rarely studied from a B2B perspective, and the process dimension, especially, is novel.peerReviewe