Servitization, digitization and supply chain interdependency

By Ferran Vendrell‐Herrero, Oscar F. Bustinza, Glenn C. Parry, Nikolaos Georgantzís. Industrial Marketing Management, 2017

610 citations recorded by the source corpus.

This study draws on literature at the intersection of servitization, digital business models and supply chain management. Work empirically explores how digital disruption has affected Business-to-Business (B2B) interdependencies. Dematerialization of physical products is transforming the way firms are positioned in the supply chain due to a reduction in production and transport costs and the different ways business engage with customers. Specifically, we propose that these new market conditions can empower downstream firms. We further propose that upstream firms can still capture additional value through digital service if their servitized offer includes difficult to imitate elements. The context of the analysis is the publishing industry. The Payment Card method employed is used to test UK and US consumer's perceptions of digital formats (eBooks) and assess their willingness to pay in relation to printed formats. The method undertaken enables us to elicit aggregated consumer demand for eBooks which in turn identifies optimal pricing strategies for the digital services. Analysis demonstrates that during digital servitization upstream firms should seek to deploy unique resources to ensure their strategic position in the supply chain is not diminished.

Subfields: Marketing, Organizational Behavior and Human Resource Management

View Paper: https://www.semanticscholar.org/paper/59504fcc939ef90e2c6eba692be028787d173a38

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Citations in the corpus

Product-service innovation and performance: the role of collaborative partnerships and R&D intensity (2019, neutral): “For instance, firms attempting to strengthen competitive position by establishing a monopsony on service distribution (Vendrell-Herrero et al., 2016), or firms forced to introduce service offerings because of market pressures and disruptive innovations (Bustinza et al., 2013), may have to resort to…”
Territorial servitization: Exploring the virtuous circle connecting knowledge-intensive services and new manufacturing businesses (2017, background): “Also, servitization can be seen as a mechanism to develop innovation capabilities and enhance customer engagement by realizing a shift from products to product-service systems (Visnjic & Van Looy, 2013; Lee et al., 2016; Vendrell-Herrero et al., 2016).”