A Property Rights-based Process Model of Supply Chain Alignment During Servitization
Servitization is the provision, by manufacturing firms, of more services associated with their products. The servitization literature has often pointed to the difficulties manufacturing firms face during their transformation during servitization, but neglects two important aspects. First, despite the acknowledged importance of transformation, the focus has been on identifying the capabilities or other attributes a manufacturing firm must achieve in order to become servitized, rather than on the process by which transformation is brought about. Second, existing research concentrates on transformation within the focal manufacturing firm, neglecting the implications of servitization for the wider supply chain. In this paper, we use a longitudinal case study in a global provider of MRI scanners to hospitals to develop a process model of supply chain alignment during servitization. Economic property rights theory allows us to identify conflicts between the allocation of rights to asset attributes between actors on the one hand, and actors’ capabilities on the other, as the “motor” of successive changes across the supply chain. We contribute to the servitization literature and the supply chain alignment literature.
Meeting ID: 966 2063 5300