The Roadmap of Servitization for Manufacturing Companies to Strength Buyer-supplier Relationships

Authors

  • Yueh-Hua Lee Tamkang University
  • Amy Tsai

Keywords:

Servitization, Buyer-supplier relationships, Logistic support

Abstract

The article aims to introduce the concept of servivitization in lubricant industry, as well as why and how it can be a useful concept for industrial firms. This study first discusses recent literature related to the concept of servitization to understand how it can strengthen relationships and create value for clients in the lubricant industry. This study also constructs a roadmap to identify and illustrate service value, and proposes a four-step procedure for servitization in the lubricant industrial context. Results suggest that lubricant industry can develop new service-based and relationship-based value propositions, and servitization can strengthen relationships and creates value for clients. The road map can be useful when introducing the importance of services and the inter-relatedness between the service department and other parts of the organization, which communicates a better internal understanding of the servitization

Author Biography

Yueh-Hua Lee, Tamkang University

Department of Business Adminstration

References

Vandermerwe, S., Rada, J., “Servitization of business: adding value by adding servicesâ€, European Management Journal, vol. 6, no. 4, pp.314-324, 1988.

Vargo, S. L., Lusch, R. F., “The four service marketing myths: remnants of a goods-based, manufacturing modelâ€, Journal of Service Research, vol. 6, no. 4, pp.324-325, 2004.

Araujo, L., Spring, M., “Services, products, and the industrial structure of productionâ€, Industrial Marketing Management, vol. 35, no. 7, pp.797-805, 2006.

Ballantyne, D., Frow, P., Varey, R. J., Payne, A., “Value propositions as communication practice: Taking a wider viewâ€, Industrial Marketing Management, vol. 40, no. 2, pp.202-210, 2011.

Oliva, R., Kallenberg, R., “Managing transition from products to servicesâ€, International Journal of Service Industry Management, vol. 14, no. 2, pp.160-172, 2003.

Cohen, M. A., Agrawal, N., Agrawal, V., “Winning in the aftermarketâ€, Harvard Business Review, vol. 84, no. 5, pp.129-138, 2006.

Sirdeshmukh, D., Singh, J., Sabol, B., “Consumer trust, value, and loyalty in relational exchangesâ€, Journal of Marketing, vol. 66, no. 1, pp.15-37, 2002.

Hall, R., “A framework linking intangible resources and capabilities to sustainable competitive advantageâ€, Strategic Management Journal, vol. 14, no. 8, pp.607-318, 1993.

Hafeez, K., Zhang, Y., Malak, N., “Core competence for sustainable competitive advantage: A structured methodology for identifying core competenceâ€, IEEE Transactions on Engineering Management, vol. 49, no. 1, pp.28-35, 2002.

Vandermerwe, S., “How increasing value to customer improves business resultsâ€, MIT Sloan Management Review, vol. 42, no. 1, pp.27-37, 2000.

Szulanski, G., “Exploring internal stickiness: Impediments to the transfer of best practice within the firmâ€, Strategic Management Journal, vol. 17, no. winter, pp.27-43, 1996.

Williamson, O. E., “The modern corporation: Origins, evolution, attributesâ€, Journal of Economic Literature, vol. 19, pp.1537-1568, 1981.

Williamson, O. E., “Employee ownership and internal governance: A perspectiveâ€, Journal of Economic Behavior and Organization, vol. 6, pp.243-245, 1985.

Hennart, J. F., “The comparative institutional theory of the firm: Some implications for corporate strategyâ€, Journal of Management Studies, vol. 31, pp.193-207, 1994.

Sako, M., “The role of trust in Japanese buyer-supplier relationshipsâ€, Ricerche Economiche, vol. 45, no. 2-3, pp.449-474, 1991.

Weigelt, K., Camerer, C., “Reputation and corporate strategy: A review of recent theory and applicationsâ€, Strategic Management Journal, vol. 9, pp. 443-454, 1988.

Slack, N., Lewis, M., Bates, H., “The two worlds of operations management research and practice: Can they meet, should they meet? â€, International Journal of Operations and Production Management, vol. 24, no. 4, pp.372-387, 2004.

Brax, S., “A manufactures becoming service provider – challenges and a paradoxâ€, Management Service Quality, vol. 15, no. 2, pp.142-155, 2005.

Eisenhardt, K. M., “Building Theories from Case Study Researchâ€, The Academy of Management Review, vol. 14, no. 4, pp.532-550, 1989.

Zeithaml, V. A., Berry, L., Parasuraman, A., “The behavioral consequences of service qualityâ€, Journal of Marketing, vol. 60, pp.31-36, 1996.

Green, K. W., Jr., Inman, R. A., “Measuring market orientation in the manufacturing sector using the MORTN scaleâ€, International Journal of Innovation and Learning, vol. 4, no. 3, pp.209-223, 2007.

Vargo, S. L., Lusch, R. F., “It's all B2B…and beyond: Toward a systems perspective of the marketâ€, Industrial Marketing Management, vol. 40, no. 2, pp.181-187, 2011.

Edvardsson, B., Gustafsson, A., Roos, I., “Service portraits in service research: a critical reviewâ€, International Journal of Service Industry Management, vol. 16, no. 1, pp.107-121, 2005.

Sampson, S. E., Froehle, C. M., “Foundations and implications of a proposed unified services systemâ€, Production and Operation Management Society, vol. 15, no. 2, pp.329-343, 2006.

Bowen, D.E., Chase, R.B., Cummings, T.G., Service Management Effectiveness, Jossey-Bass, San Francisco, CA, 1990.

Langeard, E., Eiglier, P., “Relations de service et marketingâ€, Decisions Marketing, vol. 2, pp.13-21, 1994.

Thomke, S., Bell, D. E., “Sequential testing in product developmentâ€, Management Science, vol. 47, no. 2, pp.308-323, 2001.

Granovetter, M., “The strength of weak tiesâ€, American Journal of Sociology, vol. 78, no. 6, pp.1360-1380, 1973.

Rowley, T., Behrens, D., Krackhardt, D., “Redundant governance structures:An analysis of structural and relational embeddedness in the steel and semiconductor industriesâ€, Strategic Management Journal, vol. 21, no. 3, pp.369-386, 2000.

Gulati, R., “Does familiarity breed trust? The implications of repeated ties for contractual choice in alliancesâ€, Academy of Management Journal, vol. 38, no. 1, pp.85-112,1995.

Noordewier, T., John, G., Nevin, J., “Performance outcomes of purchasing arrangements in industrial buyer–vendor relationshipsâ€, Journal of Marketing, vol. 54, no. 4, pp.80-93, 1990.

Heide, J., John, G., “Do norms matter in marketing relationships? â€, Journal of Marketing, vol. 52, no. 2, pp.20-35, 1992.

Gilliland, D. I., Bello, D. C., Two sides to attitudinal commitment: The effect of calculative and loyalty commitment on enforcement mechanisms in distribution channelsâ€, Journal of the Academy of Marketing Science, vol. 30, no. 1, pp.24-43, 2002.

Gassenheimer, J. B., Calantone, R. J., Scully, J. I., “Supplier involvement and dealer satisfaction: Implications for enhancing channel relationshipsâ€, Journal of Business & Industrial Marketing, vol. 10, no. 2, pp.7-19, 1995.

Nordin, F., “Linkages between service sourcing decisions and competitive advantage: A review, propositions, and illustrating casesâ€, International Journal of Production Economics, vol. 114, pp.40-55, 2008.

Gundlach, G. T., Achrol, R. S., Mentzer, J. T., “The structure of commitment in exchangeâ€, Journal of Marketing, vol. 59, no. 1, 1995.

Rindfleisch, A., Moorman, C., “The acquisition and utilization of information in new product alliances: A strength-of-ties perspectiveâ€, Journal of Marketing, vol. 65, no. 2, pp.1-18, 2001.

Streukens, S., Hoesel, S. V., Ruyte, K. D., “Return on marketing investments in B2B customer relationships: A decision-making and optimization approachâ€, Industrial Marketing Management, vol. 40, no. 1, pp.149-161, 2011.

Downloads

Published

2014-06-15

How to Cite

Lee, Y.-H., & Tsai, A. (2014). The Roadmap of Servitization for Manufacturing Companies to Strength Buyer-supplier Relationships. Asian Journal of Business and Management, 2(3). Retrieved from https://ajouronline.com/index.php/AJBM/article/view/1311

Issue

Section

Articles