Skip to main content

Probable Challenges Facing Servitization Adoption in Construction: Lessons from the Manufacturing Sector

  • Conference paper
  • First Online:
The Construction Industry in the Fourth Industrial Revolution (CIDB 2019)

Abstract

The construction industry has acquired a reputation for product delivery without consideration for associated services. This dissatisfaction of clients due to the non-functionality of such products has led to a clamour for the adoption of servitization. Servitization entails a transition from selling products to offering products that are blended with services to add value to the end-user. This study explores probable challenges associated with the adoption of servitization within the construction industry based on lessons learnt from the manufacturing sector. A systematic review of the servitization literature was conducted. The literature selection was predicated on a set of keywords from various databases. These articles were analyzed using qualitative content analysis based on pre-selected themes. Results indicate that poor communication flow and nature of contractual arrangements which foster further fragmentation as well as lack of clear service-orientated strategies posed as probable barriers to the adoption of servitization in the construction industry.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Akintoye, A., Hardcastle, C., Beck, M., Chinyio, E., Asenova, D.: Achieving best value in private finance initiative project procurement. Constr. Manag. Econ. 21, 461–470 (2003)

    Article  Google Scholar 

  2. Baines, T., Ziaee Bigdeli, A., Bustinza, O.F., Shi, V.G., Baldwin, J., Ridgway, K.: Servitization: revisiting the state-of-the-art and research priorities. Int. J. Oper. Prod. Manag. 37, 256–278 (2017)

    Article  Google Scholar 

  3. Baines, T.S., et al.: State-of-the-art in product-service systems. In: Proceedings of the Institution of Mechanical Engineers, pp. 1543–1552 (2007)

    Article  Google Scholar 

  4. Benedettini, O., Neely, A., Swink, M.: Why do servitized firms fail? A risk-based explanation. Int. J. Oper. Prod. Manag. 35, 946–979 (2015)

    Article  Google Scholar 

  5. Brax, S.: A manufacturer becoming service provider–challenges and a paradox. Managing Serv. Qual. Int. J. 15, 142–155 (2005)

    Article  Google Scholar 

  6. Egan, J.: Rethinking Construction Accelerating Change (2002)

    Google Scholar 

  7. Enkel, E., Gassmann, O.: Creative imitation: exploring the case of cross-industry innovation. R&D Manag. 40, 256–270 (2010)

    Article  Google Scholar 

  8. Farmer, M.: Collaborate or die. RIC Constr. J. 2017, 15 (2017)

    Google Scholar 

  9. Gruneberg, S., Hughes, W.: A review of performance-based contracting. London Royal Institute of Chartered Surveyors (2011)

    Google Scholar 

  10. Guo, L., Ng, I.: Behaviour transformation: an examination of relational governance in complex engineering service. In: Complex Engineering Service Systems. Springer (2011)

    Google Scholar 

  11. Hewitt, P.: The government’s manufacturing strategy. Secretary of State for Trade and Industry, Westminster (2002)

    Google Scholar 

  12. Hytönen, H.: A model for value-based pricing of industrial services. Master of Science in Technology, Helsinki University of Technology (2005)

    Google Scholar 

  13. Joslin, R., Müller, R.: Relationships between a project management methodology and project success in different project governance contexts. Int. J. Proj. Manag. 33, 1377–1392 (2015)

    Article  Google Scholar 

  14. Kibert, C.J.: Sustainable Construction: Green Building Design and Delivery. Wiley, Hoboken (2016)

    Google Scholar 

  15. Koskela, L., Howell, G., Ballard, G., Tommelein, I.: The foundations of lean construction. In: Design and Construction: Building in Value, pp. 211–226 (2002)

    Google Scholar 

  16. Leiringer, R., Bröchner, J.: Service-led construction projects. Constr. Manag. Econ. 28, 1123–1129 (2010)

    Article  Google Scholar 

  17. Martinez, V., Bastl, M., Kingston, J., Evans, S.: Challenges in transforming manufacturing organisations into product-service providers. J. Manuf. Technol. Manag. 21, 449–469 (2010)

    Article  Google Scholar 

  18. Mir, F.A., Pinnington, A.H.: Exploring the value of project management: linking project management performance and project success. Int. J. Project Manage. 32, 202–217 (2014)

    Article  Google Scholar 

  19. Ofori, G.: The construction industries in developing countries: strategic review of the book. In: Ofori, G. (ed.) New Perspectives on Construction in Developing Countries, Spon. Routledge, Abingdon (2012)

    Google Scholar 

  20. Oliva, R., Kallenberg, R.: Managing the transition from products to services. Int. J. Serv. Ind. Manag. 14, 160–172 (2003)

    Article  Google Scholar 

  21. Sawhney, M., Balasubramanian, S., Krishnan, V.V.: Creating growth with services. MIT Sloan Manag. Rev. 45, 34–44 (2003)

    Google Scholar 

  22. Smith, D.J.: Power-by-the-hour: the role of technology in reshaping business strategy at Rolls-Royce. Technol. Anal. Strateg. Manag. 25, 987–1007 (2013)

    Article  Google Scholar 

  23. Vandermerwe, S., Rada, J.: Servitization of business: adding value by adding services. Eur. Manag. J. 6, 314–324 (1988)

    Article  Google Scholar 

  24. Vargo, S.L., Lusch, R.F.: Evolving to a new dominant logic for marketing. J. Mark. 68, 1–17 (2004)

    Article  Google Scholar 

  25. Vargo, S.L., Lusch, R.F.: Service-dominant logic: continuing the evolution. J. Acad. Mark. Sci. 36, 1–10 (2008)

    Article  Google Scholar 

  26. Vasantha, G.V.A., Roy, R., Lelah, A., Brissaud, D.: A review of product–service systems design methodologies. J. Eng. Des. 23, 635–659 (2012)

    Article  Google Scholar 

  27. Waters, N.: Engine health management. Ingenia 39, 37–42 (2009)

    Google Scholar 

  28. Wise, R., Baumgartner, P.: Go downstream: the new profit imperative in manufacturing. IEEE Eng. Manage. Rev. 28, 89–96 (2000)

    Google Scholar 

  29. Womack, J.P., Jones, D.T.: Beyond Toyota: how to root out waste and pursue perfection. Harvard Bus. Rev. 74, 140–158 (1996)

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Rotondwa B. Ramafalo .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Ramafalo, R.B., Awuzie, B.O., Aigbavboa, C. (2020). Probable Challenges Facing Servitization Adoption in Construction: Lessons from the Manufacturing Sector. In: Aigbavboa, C., Thwala, W. (eds) The Construction Industry in the Fourth Industrial Revolution. CIDB 2019. Springer, Cham. https://doi.org/10.1007/978-3-030-26528-1_45

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-26528-1_45

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-26527-4

  • Online ISBN: 978-3-030-26528-1

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics