Exploring the root causes of servitization challenges: an organisational boundary perspective

Purpose This paper explains how servitization disrupts long-established internal and external boundaries of product-focused manufacturers and investigates the root causes of servitization challenges. Design/methodology/approach The authors draw from the collective experiences of 20 senior executives from ten multinational manufacturers involved in servitization, using a multiple case study approach, and employ a codebook thematic analysis technique. Findings The authors develop an integrative framework based on the theoretical notions of power, competency and identity boundaries to offer insights into the root causes of various servitization-related challenges. Research limitations/implications Although the extant literature discusses servitization challenges, it does not examine the underlying root causes that create them in the first place. This study contributes to the extant research by establishing rational links between organisational boundaries (internal and external) and servitization challenges in the interest of building a coherent and systematically integrated body of theory that can be successfully applied and built upon by future research. Practical implications This study provides a foundation for managers to recognise, anticipate and systematically manage various boundary-related challenges triggered by servitization. Originality/value It is one of the first studies to employ the concept of organisational boundary to understand the challenges created by servitization and to account for both internal (between different functions of the same organisation) and external boundaries (between an organisation and its external stakeholders) to establish a holistic understanding of the impacts of servitization on manufacturers.

Automated summary

This study explores the challenges of servitization by examining organizational boundaries, both internal (within the organization) and external (with external stakeholders), to provide a comprehensive understanding of the impacts on manufacturers. Through the use of a multiple case study approach and thematic analysis, the authors develop an integrative framework based on theoretical concepts of power, competency, and identity boundaries.