Abstract
Depending on the nature of the specific service offering and the industrial context, organizational structures of service provision (and receiving) differ. Structures include relatively simply service dyad set-ups, where buyer and supplier engage directly through provision and modification of materials, equipment, knowledge and expertise. In contrast, service triads increase complexity as operations of service provision are outsourced to an external supplier, changing the dynamics and interactions between the partners. Furthermore, service networks between a number of suppliers, an integrator and a customer create a dynamic, multifaceted landscape of interactions and operational exchanges. This chapter presents an overview of the opportunities, challenges and performance factors in service dyads, service triads and service networks based on the literature in the field. The aim is to offer a structured overview of the organizational structures found in service provision in the context of servitization.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Baines, T. S., Lightfoot, H. W., Evans, S., Neely, A., Greenough, R., Peppard, J., Roy, R., Shehab, E., Braganza, A., Tiwari, A. and Alcock, J.R., Angus, J. P., Bastl, M., Cousens, A., Irving, P., Johnson, M., Kingston, J., Lockett, H., Martinez, V., Michele, P., Tranfield, D., Walton, I. M., & Wilson, H. (2007). State-of-the-art in Product-Service Systems. Proceedings of the Institution of Mechanical Engineers—Part B—Journal for Engineering Manufacture, 221, 1543–1552. https://doi.org/10.1243/09544054jem858.
Breidbach, C. F., Kolb, D. G., & Srinivasan, A. (2013). Connectivity in service systems: Does technology-enablement impact the ability of a service system to co-create value? Journal of Service Research, 16(3), 428–441. https://doi.org/10.1177/1094670512470869.
Caldwell, N., & Howard, M. (2014). Contracting for complex performance in markets of few buyers and sellers. International Journal of Operations & Production Management, 34(2), 270–294. https://doi.org/10.1108/IJOPM-10-2013-0444.
Elango, B., & Wieland, J. R. (2015). Impact of country effects on the performance of service firms. Journal of Service Management, 26(4), 588–607. https://doi.org/10.1108/JOSM-02-2015-0056.
Fang, E. (Er), Palmatier, R. W., & Steenkamp, J.-B. E. M. (2008). Effect of service transition strategies on firm value. Journal of Marketing, 72(5), 1–14. https://doi.org/10.1509/jmkg.72.5.1.
Finne, M., & Holmström, J. (2013). A manufacturer moving upstream: Triadic collaboration for service delivery. Supply Chain Management: An International Journal, 18(1), 21–33.
Gebauer, H., Paiola, M., & Saccani, N. (2013). Characterizing service networks for moving from products to solutions. Industrial Marketing Management, 42(1), 31–46. https://doi.org/10.1016/j.indmarman.2012.11.002.
Grönroos, C. (2011). A service perspective on business relationships: The value creation, interaction and marketing interface. Industrial Marketing Management, 40(2), 240–247. https://doi.org/10.1016/j.indmarman.2010.06.036.
Jaakkola, E., & Hakanen, T. (2013). Value co-creation in solution networks. Industrial Marketing Management, 42(1), 47–58. https://doi.org/10.1016/j.indmarman.2012.11.005.
Karatzas, A., Johnson, M., & Bastl, M. (2016). Relationship determinants of performance in service triads: A configurational approach. Journal of Supply Chain Management, 52(3), 28–47. https://doi.org/10.1111/jscm.12109.
Kreye, M. E. (2016). Employee motivation in Product-Service-System providers. Production Planning & Control, 27(15), 1249–1259. https://doi.org/10.1080/09537287.2016.1206219.
Kreye, M. E. (2017a). Can you put too much on your plate? Uncertainty exposure in servitized triads. International Journal of Operations & Production Management, 37(12), 1722–1740. https://doi.org/10.1108/IJOPM-06-2016-0357.
Kreye, M. E. (2017b). Relational uncertainty in service dyads. International Journal of Operations & Production Management, 37(3), 363–381.
Kreye, M. E., Newnes, L. B., & Goh, Y. M. (2014). Uncertainty in competitive bidding—A framework for product—Service systems. Production Planning & Control, 25(6), 462–477. https://doi.org/10.1080/09537287.2012.705354.
Kreye, M. E., & Perunovic, Z. (2020a, April). Performance in publicly funded innovation networks (PFINs): The role of inter-organisational relationships. Industrial Marketing Management, 86, 201–211. https://doi.org/10.1016/j.indmarman.2019.11.018.
Kreye, M. E., & Perunovic, Z. (2020b). You don’t forget where you come from: Linking formation and operations in publicly funded innovation networks. Production Planning & Control, 31(10), 816–828. https://doi.org/10.1080/09537287.2019.1693066.
Kreye, M. E., Roehrich, J. K., & Lewis, M. A. (2015). Servitising manufacturers: The impact of service complexity and contractual and relational capabilities. Production Planning & Control, 26(14), 1233–1246. https://doi.org/10.1080/09537287.2015.1033489.
Kreye, M. E., & Van Donk, D. P. (2021). Exploring servitization in the Business-to-Consumer context. International Journal of Operations & Production Management.
Larivière, B., Bowen, D., Andreassen, T. W., Kunz, W., Sirianni, N. J., Voss, C., Wünderlich, N. V., & De Keyser, A. (2017). “Service Encounter 2.0”: An investigation into the roles of technology, employees and customers. Journal of Business Research, 79, 238–246. https://doi.org/10.1016/j.jbusres.2017.03.008.
Li, M. E. I., & Choi, T. Y. (2009). Triads in services outsourcing: Bridge, bridge decay and bridge transfer. Journal of Supply Chain Management, 45(3), 27–39. https://doi.org/10.1111/j.1745-493X.2009.03169.x.
Löfberg, N., Witell, L., & Gustafsson, A. (2015). Service manoeuvres to overcome challenges of servitisation in a value network. Production Planning & Control, 26(14), 1188–1197. https://doi.org/10.1080/09537287.2015.1033491.
Ndubisi, N. O., Capel, C. M., & Ndubisi, G. C. (2015). Innovation strategy and performance of international technology services ventures: The moderating effect of structural autonomy. Journal of Service Management, 26(4), 548–564. https://doi.org/10.1108/JOSM-04-2015-0118.
Oliva, R., Gebauer, H., & Brann, J. M. (2012). Separate or integrate? Assessing the impact of separation between product and service business on service performance in product manufacturing firms. Journal of Business-to-Business Marketing, 19(4), 309–334. https://doi.org/10.1080/1051712X.2012.647797.
Rabetino, R., Kohtamäki, M., & Gebauer, H. (2017). Strategy map of servitization. International Journal of Production Economics, 192, 144–156. https://doi.org/10.1016/j.ijpe.2016.11.004.
Raddats, C., Kowalkowski, C., Benedettini, O., Burton, J., & Gebauer, H. (2019, April). Servitization: A contemporary thematic review of four major research streams. Industrial Marketing Management, 83, 207–223. https://doi.org/10.1016/j.indmarman.2019.03.015.
Ramirez Hernandez, T., & Kreye, M. E. (2021). Uncertainty profiles in engineering-service development: Exploring supplier co-creation. Journal of Service Management, forthcoming.
Sampson, S. E. (2012). Visualizing service operations. Journal of Service Research, 15(2), 182–198. https://doi.org/10.1177/1094670511435541.
Sampson, S. E., & Froehle, C. M. (2006). Foundations and implications of a proposed unified services theory. Production & Operations Management, 15(2), 329–343. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=22404199&site=ehost-live.
Sampson, S. E., & Spring, M. (2012). Customer roles in service supply chains and opportunities for innovation. Journal of Supply Chain Management, 48(4), 30–50. https://doi.org/10.1111/j.1745-493X.2012.03282.x.
Selviaridis, K. (2016). Contract functions in service exchange governance: Evidence from logistics outsourcing. Production Planning and Control, 27(16), 1373–1388. https://doi.org/10.1080/09537287.2016.1224397.
Spring, M., & Araujo, L. (2013). Beyond the service factory: Service innovation in manufacturing supply networks. Industrial Marketing Management, 42(1), 59–70. https://doi.org/10.1016/j.indmarman.2012.11.006.
Tax, S. S., McCutcheon, D., & Wilkinson, I. F. (2013). The Service Delivery Network (SDN): A customer-centric perspective of the customer journey. Journal of Service Research, 16(4), 454–470. https://doi.org/10.1177/1094670513481108.
Ulaga, W. (2003). Capturing value creation in business relationships: A customer perspective. Industrial Marketing Management, 32(8), 677–693. https://doi.org/10.1016/j.indmarman.2003.06.008.
Vandermerwe, S., & Rada, J. (1988). Servitization of business: Adding value by adding services. European Management Journal, 6(4), 314–324.
Vargo, S. L., & Lusch, R. F. (2008). Service-dominant logic: Continuing the evolution. Journal of the Academy of Marketing Science, 36(1), 1–10.
Windahl, C., & Lakemond, N. (2006). Developing integrated solutions: The importance of relationships within the network. Industrial Marketing Management, 35(7), 806–818. https://doi.org/10.1016/j.indmarman.2006.05.010.
Wise, R., & Baumgartner, P. (1999). Go downstream: The new profit imperative in manufacturing. Harvard Business Review, 77(5), 133–141.
Wynstra, F., Spring, M., & Schoenherr, T. (2015). Service triads: A research agenda for buyer–supplier–customer triads in business services. Journal of Operations Management, 35, 1–20. https://doi.org/10.1016/j.jom.2014.10.002.
Zhang, W., & Banerji, S. (2017, June). Challenges of servitization: A systematic literature review. Industrial Marketing Management, 65, 217–227. https://doi.org/10.1016/j.indmarman.2017.06.003.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2021 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Kreye, M. (2021). Network Structures in Service Provision. In: Kohtamäki, M., et al. The Palgrave Handbook of Servitization. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-75771-7_31
Download citation
DOI: https://doi.org/10.1007/978-3-030-75771-7_31
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-75770-0
Online ISBN: 978-3-030-75771-7
eBook Packages: Business and ManagementBusiness and Management (R0)