The Experts below are selected from a list of 66156 Experts worldwide ranked by ideXlab platform
Bart Van Looy - One of the best experts on this subject based on the ideXlab platform.
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servitization disentangling the impact of service business model innovation on Manufacturing Firm performance
Journal of Operations Management, 2013Co-Authors: Ivanka Visnjic Kastalli, Bart Van LooyAbstract:As Manufacturing businesses operate in an ever more competitive, global economy where products are easily commoditized, innovating by adding services to the core product offering has become a popular strategy. Contrary to the economic benefits expected, recent findings pinpoint implementation hurdles that lead to a potential performance decline, the so-called ‘servitization paradox’. In this paper, we analyze this paradox by disentangling the value creation and value appropriation processes of 44 national subsidiaries of a global Manufacturing Firm turned product-service provider, in the 2001–2007 period. Our findings show that the Firm under study is able to successfully transcend the inherent substitution of products by services and to enact complementary sales dynamics between the two activities. Moreover, labor-intensive services such as maintenance, which imply higher levels of customer proximity, further enhance product sales. Empirical results also reveal a positive yet non-linear relationship between the scale of service activities and profitability: while initial levels of servicing result in a steep increase in profitability, a period of relative decline is observed before the positive relationship between the scale of services and profitability re-emerges. These findings suggest the presence of initial short-term gains but also indicate the existence of a ‘profitability’ hurdle; profitable growth seems feasible only to the extent that investments in service capability are translated into economies of scale. In helping to clarify the performance implications of service innovation, our findings suggest pathways to sustainable growth through servitization for Manufacturing Firms
Magnus Lodefalk - One of the best experts on this subject based on the ideXlab platform.
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The role of services for Manufacturing Firm exports
Review of World Economics, 2014Co-Authors: Magnus LodefalkAbstract:Manufacturing Firms have been increasingly focusing on services, a trend that is evident in their composition of bought-in input and in-house production. The services intensity of Firms may affect their productivity and thereby their competitiveness abroad; services are also instrumental in connecting Firms to foreign markets and can help them to differentiate their offerings from those of other Firms. However, the relation between services and Manufacturing exports has only been partially analysed in the previous literature. This study contributes to the field by discussing the role of services for Firms and empirically testing a set of related conjectures. Export intensity is regressed on two services input parameters, applying a fractional model to a rich panel of Firms in Sweden in the period 2001–2007. The microeconometric results suggest that, after controlling for covariates and heterogeneity, service inputs affect a Firms’ export capabilities: raising the proportion of services in in-house production yields higher export intensity on average. Furthermore, buying-in more services is associated with higher export intensity for Firms in some industries. Overall, the study provides new Firm-level evidence of the role of services as inputs in Manufacturing.
Ivanka Visnjic Kastalli - One of the best experts on this subject based on the ideXlab platform.
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servitization disentangling the impact of service business model innovation on Manufacturing Firm performance
Journal of Operations Management, 2013Co-Authors: Ivanka Visnjic Kastalli, Bart Van LooyAbstract:As Manufacturing businesses operate in an ever more competitive, global economy where products are easily commoditized, innovating by adding services to the core product offering has become a popular strategy. Contrary to the economic benefits expected, recent findings pinpoint implementation hurdles that lead to a potential performance decline, the so-called ‘servitization paradox’. In this paper, we analyze this paradox by disentangling the value creation and value appropriation processes of 44 national subsidiaries of a global Manufacturing Firm turned product-service provider, in the 2001–2007 period. Our findings show that the Firm under study is able to successfully transcend the inherent substitution of products by services and to enact complementary sales dynamics between the two activities. Moreover, labor-intensive services such as maintenance, which imply higher levels of customer proximity, further enhance product sales. Empirical results also reveal a positive yet non-linear relationship between the scale of service activities and profitability: while initial levels of servicing result in a steep increase in profitability, a period of relative decline is observed before the positive relationship between the scale of services and profitability re-emerges. These findings suggest the presence of initial short-term gains but also indicate the existence of a ‘profitability’ hurdle; profitable growth seems feasible only to the extent that investments in service capability are translated into economies of scale. In helping to clarify the performance implications of service innovation, our findings suggest pathways to sustainable growth through servitization for Manufacturing Firms
Sambasivarao Damaraju - One of the best experts on this subject based on the ideXlab platform.
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The role of product architecture in the Manufacturing Firm
Research Policy, 1995Co-Authors: Karl Ulrich, Andruid Kerne, J Moeller, Karl T. Ulrich, Sambasivarao DamarajuAbstract:Product architecture is the scheme by which the function of a product is allocated to physical components. This paper further defines product architecture, provides a typology of product architectures, and articulates the potential linkages between the architecture of the product and five areas of managerial importance: (1) product change; (2) product variety; (3) component standardization; (4) product performance; and (5) product development management. The paper is conceptual and foundational, synthesizing fragments from several different disciplines, including software engineering, design theory, operations management and product development management. The paper is intended to raise awareness of the far-reaching implications of the architecture of the product, to create a vocabulary for discussing and addressing the decisions and issues that are linked to product architecture, and to identify and discuss specific trade-offs associated with the choice of a product architecture. © 1995.
Tarik Aouam - One of the best experts on this subject based on the ideXlab platform.
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Trade Credit as an Option to Acquire Financing
Foundations and Trends® in Technology Information and Operations Management, 2017Co-Authors: Pierre-yves Brunet, Volodymyr Babich, Tarik AouamAbstract:We study joint operational and financing decisions of a cashconstrained Manufacturing Firm in the presence of bank financing and trade credit, where banks set credit limit based on borrowers repayment histories. Trade credit financing enables the Manufacturing Firm to build credit history, which affects bank financing availability in the future periods. This can make trade credit valuable, even though it is costly in the current period. We quantify the value of trade credit as a way of securing access to future bank financing and investigate how financing considerations distort the Firm’s operational decisions.
