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- Choosing the right, manufacturing paradigmPublication . Silveira, Giovani J. C. da; Sousa, Rui S.Developing superior manufacturing competitiveness is back on the agenda of developing economies. Different approaches for decision making have been proposed to achieve this objective. This article discusses the extent to which the three main approaches of building capabilities, adopting best practices, and maintaining fit may explain improvements in quality, delivery and flexibility performance in manufacturing
- The relationship between servitization and product customization strategiesPublication . Sousa, Rui; Silveira, Giovani J. C. daPurpose – The purpose of this paper is to examine the relationship between product customization and servitization strategies, specifically the relationship between product customization strategy intensity and degree of servitization (offering of basic and/or advanced services) and the moderating role of product customization strategy alignment on that relationship. Design/methodology/approach – The authors develop and test hypotheses through partial least squares path modeling to analyze data from the Sixth International Manufacturing Strategy Survey, involving 931 manufacturers in 22 countries. Findings – The results indicate that customization strategy intensity is positively associated with the offering of basic and advanced services; these relationships are not moderated by customization strategy alignment. Practical implications – Manufacturers pursuing product customization strategies may be especially well positioned to servitize, even those with misalignment in strategic choices. Paradoxically, while manufacturers of standard products might look at servitization as an attractive strategy to differentiate their value proposition, they appear to be less servitized than manufacturers pursuing product customization. Originality/value – This is one of the first studies to examine how manufacturing strategy choices (intensity and alignment) influence the adoption of servitization strategies. The study introduces manufacturing strategy as a contingency factor that influences the adoption of servitization, answering calls for the study of servitization contingencies.
- Capability antecedents and performance outcomes of servitizationPublication . Sousa, Rui; Silveira, Giovani J. C. daPurpose - The purpose of this paper is to theoretically articulate and empirically test an integrated model of capability antecedents and performance outcomes of servitization strategies. The authors characterize servitization strategies based on the offering of two types of services: basic services (BAS) and advanced services (ADS). Design/methodology/approach - Hypotheses are tested based on statistical analyses of a large survey of manufacturers from different countries and sectors. Findings - The authors find that manufacturing capabilities associate with the provision of BAS, while service capabilities associate with both BAS and ADS; BAS do not impact financial performance, but support the offering of ADS; there seem to be naturally occurring servitization trajectories involving the gradual development of balanced levels of BAS and ADS and adequate levels of manufacturing and service capabilities. Research limitations/implications - The findings on servitization trajectories are based on the observation of manufacturing business units at different stages of servitization (cross-sectional data). Practical implications - Manufacturers wishing to servitize should distinguish between BAS and ADS and deploy a balanced adoption of BAS and ADS, using BAS as a platform. This should be accompanied with the building of appropriate capabilities. Originality/value - This is one of the first studies to show an explicit link between different servitization strategies, capabilities, and servitization maturity. It provides new insights into the servitization paradox and servitization trajectories.
- Advanced services and differentiation advantage: an empirical investigationPublication . Sousa, Rui; Silveira, Giovani J.C. daPurpose – This study theoretically articulates and empirically validates a model of relationships between market complexity (competition intensity, heterogeneity and technological change), strategic focus on product and service differentiation, ADS offerings and differentiation advantage. Design/methodology/approach – The authors develop and test hypotheses through structural equation modeling based on data from the Sixth International Manufacturing Strategy Survey (IMSS-VI), involving 931 manufacturers from 22 countries. Findings – The results indicate that (1) market complexity has a positive impact on strategic focus on product and service differentiation; (2) focus on product and service differentiation, but not market complexity, has a positive impact on the extent to which business units offer ADS to their customers; (3) ADS have a positive impact on service differentiation advantage, but no influence on product differentiation advantage. Practical implications – Managers should incorporate decisions related to ADS provision as part of their manufacturing strategy formulation processes to align markets, strategic focus on product and service differentiation, and ADS provision. ADS seem an appropriate lever for market differentiation, because they appear not only to support service differentiation advantage, but also to be consistent with strategic focus on product differentiation. Originality/value – The study provides novel insights and large-scale empirical evidence on the influence of the market environment on the offering of ADS, as well as on how relationships between the product and service activity in the manufacturing organization may affect differentiation advantage.
- Paradigms of choice in manufacturing strategy : exploring performance relationships of fit, best practices, and capability-based approachesPublication . Silveira, Giovani J. C. da; Sousa, RuiPurpose – The paper sets out to test relationships between performance improvements and the three classical manufacturing strategy paradigms of fit, best practices, and capabilities defined by Voss. Design/methodology/approach – Regression analyses are carried out on an international sample of 697 manufacturers of fabricated metal products, machinery, and equipment. Findings – The results indicate that capability learning and best practices are positively related to performance improvements in quality, flexibility, and dependability, whereas internal fit appears to be negatively related to flexibility improvements. Research limitations/implications – The study reinforces the need for research to explore the nature and role of the three paradigms jointly rather than in isolation. In particular, more research is needed to assess the merits of maintaining fit between operations structure and processes. Practical implications – Improving performance in areas such as quality, flexibility, and delivery can be achieved through building capabilities and/or adopting best practices, but not apparently by maintaining internal fit between operations structure and processes. Originality/value – The study validates two of the three classical paradigms of manufacturing strategy and makes the case for research to further specify and test the merits of maintaining internal fit between operations structure and processes.