Abstract
This chapter introduces the concept of territorial servitization and discusses reasons why rural and regional development research and policy very slowly develop the servitization field. The research findings highlight two new dimensions that are needed in the design of post-industrial rural development policy. The first dimension of the territorial servitization policy relates to the shift from supporting technological innovations to supporting organizational and social innovations. The second dimension of territorial servitization policy concerns the growing role of collaboration.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Aksoy, H. (2017). How do innovation culture, marketing innovation and product innovation affect the market performance of small and medium-sized enterprises (SMEs)? Technology in Society, 51, 133–141. https://doi.org/10.1016/j.techsoc.2017.08.005
Alderson, A. (1999). Explaining deindustrialization: Globalization, failure, or success? American Sociological Review, 64(5), 701–721. https://doi.org/10.2307/2657372
Baines, T. S., & Lightfoot, H. (2013). Made to serve: How manufacturers can compete through servitization and product service systems. Wiley.
Baines, T. S., Lightfoot, H. W., Benedettini, O., & Kay, J. M. (2009). The servitization of manufacturing: A review of literature and reflection on future challenges. Journal of Manufacturing Technology Management, 20(5), 547–567. https://doi.org/10.1108/17410380910960984
Baláž, V. (2004). Knowledge-intensive business services in transition economies. The Service Industries Journal, 24(4), 83–100. https://doi.org/10.1080/0264206042000275208
Barth, H., Ulvenblad, P., Ulvenblad, P. O., & Hoveskog, M. (2021). Unpacking sustainable business models in the Swedish agricultural sector—The challenges of technological, social and organizational innovation. Journal of Cleaner Production, 304, 127004. https://doi.org/10.1016/j.jclepro.2021.127004
Basáez, M. O., Cantín, L. N., & Granados, J. A. C. (2020). Does distance truly matter? Assessing the impact of KIBS proximity on firms’ servitization capacity: Evidence from the Basque country. Investigaciones Regionales—Journal of Regional Research, 48, 51–68.
Bustinza, O. F., Bigdeli, A. Z., Baines, T., & Elliot, C. (2015). Servitization and competitive advantage: The importance of organizational structure and value chain position. Research-Technology Management, 58(5), 53–60. https://doi.org/10.5437/08956308X5805354
Capello, R., & Kroll, H. (2016). From theory to practice in smart specialization strategy: Emerging limits and possible future trajectories. European Planning Studies, 24(8), 1393–1406. https://doi.org/10.1080/09654313.2016.1156058
Crozet, M., & Milet, E. (2017). Should everybody be in services? The effect of servitization on manufacturing firm performance. Journal of Economics & Management Strategy, 26(4), 820–841. https://doi.org/10.1111/jems.12211
Cuadrado-Roura, J. R. (2016). Service industries and regional analysis. New directions and challenges. Investigaciones Regionales, 36, 107–127.
De Propris, L., & Storai, D. (2019). Servitizing industrial regions. Regional Studies, 53(3), 388–397. https://doi.org/10.1080/00343404.2018.1538553
Den Hertog, P. (2000). Knowledge-intensive business services as co-producers of innovation. International Journal of Innovation Management, 4(04), 491–528. https://doi.org/10.1142/S136391960000024X
European Commission. (2011). Sustainable food consumption and production in a resource-constrained world: 3rd Foresight Exercise the Standing Committee on Agricultural Research (SCAR). https://scar-europe.org/images/SCAR-Documents/scar_3rd-foresight_2011.pdf
Fang, E., Palmatier, W. R., & Steenkamp, J. B. E. (2008). Effect of service transition strategy on firm value. Journal of Marketing, 72(5), 1–14. https://doi.org/10.1509/jmkg.72.5.1
Figueroa-Armijos, M. (2019). Does public entrepreneurial financing contribute to territorial servitization in manufacturing and KIBS in the United States? Regional Studies, 53(3), 341–355. https://doi.org/10.1080/00343404.2018.1554900
Gaddefors, J., & Anderson, A. R. (2019). Romancing the rural: Reconceptualizing rural entrepreneurship as engagement with context(s). The International Journal of Entrepreneurship and Innovation, 20(3), 159–169. https://doi.org/10.1177/1465750318785545
Gaiardelli, P., Songini, L., & Saccani, N. (2014). The automotive industry: Heading towards servitization in turbulent times. In G. Lay (Ed.), Servitization in industry (pp. 55–72). Springer. https://doi.org/10.1007/978-3-319-06935-7_4
Gebauer, H., & Binz, C. (2019). Regional benefits of servitization processes: Evidence from the wind-to-energy industry. Regional Studies, 53(3), 366–375. https://doi.org/10.1080/00343404.2018.1479523
Gomes, E., Bustinza, O. F., Tarba, S., Khan, Z., & Ahammad, M. (2019). Antecedents and implications of territorial servitization. Regional Studies, 53(3), 410–423. https://doi.org/10.1080/00343404.2018.1468076
Guo, A., Li, Y., Zuo, Z., & Chen, G. (2015). Influence of organizational elements on manufacturing firms’ service-enhancement: An empirical study based on Chinese ICT industry. Technology in Society, 43, 183–190. https://doi.org/10.1016/j.techsoc.2015.07.003
Herrero, F. V., González, E. M. L., & Vaillant, Y. (2020). Territorial servitization: Conceptualization, quantification and research agenda. Investigaciones Regionales—Journal of Regional Research, 48, 5–15.
Herzenberg, S. A., Alic, J. A., & Wial, H. (2019). New rules for a new economy: Employment and opportunity in post-industrial America. Cornell University Press.
Hipp, C. (1999). Knowledge-intensive business services in the new mode of knowledge production. AI Society, 13, 88–106. https://doi.org/10.1007/BF01205260
Horváth, K., & Rabetino, R. (2019). Knowledge-intensive territorial servitization: Regional driving forces and the role of the entrepreneurial ecosystem. Regional Studies, 53(3), 330–340. https://doi.org/10.1080/00343404.2018.1469741
Imbs, J. (2017, March). Structural change in the OECD: Some facts, chapter 3. In L. Fontagné & A. Harrison (Eds.), The factory-free economy. Outsourcing, servitization, and the future of industry. Oxford University Press.
Kamal, M. M., Sivarajah, U., Bigdeli, A. Z., Missi, F., & Koliousis, Y. (2020). Servitization implementation in the manufacturing organisations: Classification of strategies, definitions, benefits and challenges. International Journal of Information Management, 55, 102206. https://doi.org/10.1016/j.ijinfomgt.2020.102206
Kanatlı, M. A., & Karaer, Ö. (2022). Servitization as an alternative business model and its implications on product durability, profitability & environmental impact. European Journal of Operational Research, 301(2), 546–560. https://doi.org/10.1016/j.ejor.2021.10.052
Lafuente, E., Vaillant, Y., & Vendrell-Herrero, F. (2019). Territorial servitization and the manufacturing renaissance in knowledge-based economies. Regional Studies, 53(3), 313–319. https://doi.org/10.1080/00343404.2018.1542670
Lafuente, E., Vaillant, Y., & Vendrell-Herrero, F. (2023). Editorial: Product-service innovation Systems—Opening-up servitization-based innovation to manufacturing industry. Technovation, 120, 102665. https://doi.org/10.1016/j.technovation.2022.102665
Lankauskienė, R., Vidickienė, D., & Gedminaitė-Raudonė, Ž. (2022). Evolution of short food supply chain theory and practice: Two-sided networks and platforms. Energies, 15(3), 1137. https://doi.org/10.3390/en15031137
Lokuge, S. (2021). Theoretical opportunities for rural innovation and entrepreneurship research. In S. Lokuge & D. Sedera (Eds.), Rural entrepreneurship and innovation in the digital era. Southern Cross University.
Lombardi, S., Santini, E., & Vecciolini, C. (2022). Drivers of territorial servitization: An empirical analysis of manufacturing productivity in local value chains. International Journal of Production Economics, 253, 108607. https://doi.org/10.1016/j.ijpe.2022.108607
Marino, D., & Trapasso, R. (2020). Servitization and territorial self reinforcing mechanisms: A new approach to regional competitiveness. Investigaciones Regionales—Journal of Regional Research, 2020/3(48), 85–93. https://doi.org/10.38191/iirr-jorr.20.022
Neuhüttler, J., Woyke, I. C., & Ganz, W. (2018). Applying value proposition design for developing smart service business models in manufacturing firms. In Advances in The Human Side of Service Engineering: Proceedings of the AHFE 2017 International Conference on The Human Side of Service Engineering, July 17−21, 2017 (pp. 103–114). Springer International Publishing.
Neumeier, S. (2017). Social innovation in rural development: Identifying the key factors of success. The Geographical Journal, 183(1), 34–46. https://doi.org/10.1111/geoj.12180
Opazo-Basáez, M., Cantín, L. N., & Campos, J. A. (2020). Does distance really matter? Assessing the impact of KIBS proximity on firms’ servitization capacity: Evidence from the Basque country. Investigaciones Regionales-Journal of Regional Research, 48, 51–68.
Opresnik, D., & Taisch, M. (2015). The value of Big Data in servitization. International Journal of Production Economics, 165, 174–184. https://doi.org/10.1016/j.ijpe.2014.12.036
Osterwalder, A., & Pigneur, Y. (2010). Business model generation. Wiley Press.
Palojärvi, A., Pyysiäinen, J., & Saloranta, M. (Eds.). (2013). Experiences with ecological technologies and practices: Inspiring stories from ecovillages. LAEI.
Pedrinho, G. C., Cauchick-Miguel, P. A., & Moro, S. R. (2022). Offering wind farms: Types of service and their characteristics. In Production and Operations Management: POMS Lima, Peru, December 2–4, 2021 (Virtual Edition) (pp. 171–179). Springer International Publishing. https://doi.org/10.1007/978-3-031-06862-1_12
Pyka, A., Kudic, M., & Müller, M. (2019). Systemic interventions in regional innovation systems: Entrepreneurship, knowledge accumulation and regional innovation. Regional Studies, 53(9), 1321–1332. https://doi.org/10.1080/00343404.2019.1566702
Rajapathirana, J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge, 3(1), 44–55. https://doi.org/10.1016/j.jik.2017.06.002
Rajput, S., & Singh, S. P. (2019). Connecting circular economy and industry 4.0. International Journal of Information Management, 49, 98–113. https://doi.org/10.1016/j.ijinfomgt.2019.03.002
Ramaswamy, V., & Ozcan, K. (2014). The co-creation paradigm. Stanford University Press. https://doi.org/10.1515/9780804790758
Rowthorn, R., & Coutts, K. (2004). Commentary: Deindustrialisation and the balance of payments in advanced economies. Cambridge Journal of Economics, 28(5), 767–790. https://doi.org/10.1093/cje/beh034
Sforzi, F., & Boix, R. (2019). Territorial servitization in Marshallian industrial districts: The industrial district as a place-based form of servitization. Regional Studies, 53(3), 398–409. https://doi.org/10.1080/00343404.2018.1524134
Tell, J., Hoveskog, M., Ulvenblad, P., Ulvenblad, P. O., Barth, H., & Ståhl, J. (2016). Business model innovation in the agri-food sector: A literature review. British Food Journal, 118(6), 1462–1476. https://doi.org/10.1108/BFJ-08-2015-0293
Ulvenblad, P., Hoveskog, M., Tell, J., Ulvenblad, P. O., Stahl, J., & Barth, H. (2014). Agricultural business model innovation in Swedish food production: The influence of self-leadership and lean innovation. In DRUID Society Conference 2014 on Entrepreneurship-Organization-Innovation. Copenhagen Business School.
Vendrell-Herrero, F., & Wilson, J. R. (2017). Servitization for territorial competitiveness: Taxonomy and research agenda. Competitiveness Review, 27(1), 2–11. https://doi.org/10.1108/CR-02-2016-0005
Vidickienė, D. (2017). Economic regulation directions regarding the essential shift in the structure of economy [Ekonomikos reguliavimo kryptys vykstant esminiams ūkio struktūros pokyčiams]. Viešoji politika ir administravimas / Public Policy and Administration, 16(3), 468–481. https://doi.org/10.5755/j01.ppaa.16.3.19343
Vidickienė, D. (2018). Adapting to the needs of new farmers’ generation: Theoretical foundations for rural policy [Naujosios ūkininkų kartos poreikiams pritaikytos kaimo politikos teoriniai pagrindai]. Viešoji politika ir administravimas / Public Policy and Administration, 17(1), 54–67. https://doi.org/10.5755/j01.ppaa.17.1.20607
Vidickienė, D., & Gedminaitė-Raudonė, Z. (2018a). Agricultural policy in the servitizated economy. In M. Wigier & A. Kowalski (Eds.), The CAP and national priorities within the EU budget after 2020, Multiannual Program Reports 302754, Institute of Agricultural and Food Economics—National Research Institute (IAFE-NRI) (pp. 173–180). https://doi.org/10.22004/ag.econ.302754
Vidickienė, D., & Gedminaitė-Raudonė, Z. (2018b). Challenges for agricultural policy in the service driven economic system. Economics of Agriculture, 65(4), 1545–1555. https://doi.org/10.5937/ekoPolj1804545V
Vidickienė, D., & Gedminaitė-Raudonė, Z. (2019). Servitization as a tool to increase vitality of ageing rural community. European Countryside, 11(1), 85–97. https://doi.org/10.2478/euco-2019-0006
Vidickienė, D., Gedminaitė-Raudonė, Ž., & Simonaitytė, V. (2019). Servitization of farming: Business model “product plus service” in Lithuania [Ūkininkavimo servitizacija: verslo modelio “produktų gamyba plius paslaugų teikimas” apraiškos Lietuvoje]. Lithuanian Institute of Agrarian Economics. ISBN: 978-9955-481-71-3 (In Lithuanian).
Vidickienė, D., Vilkė, R., & Gedminaitė-Raudonė, Z. (2020). Transformative tourism as an innovative tool for rural development. European Countryside, 12(3), 277–291. https://doi.org/10.2478/euco-2020-0016
Vidickienė, D., Gedminaitė-Raudonė, Z., Melnikienė, R., Simonaitytė, V., & Lankauskienė, R. (2021). The role of multi-sided collaborative networks and their platforms in the process of servitization the economy of rural regions. Lithuanian Centre for Social Sciences. ISBN 987-609-96239-1-7 (In Lithuanian).
Vidickienė, D., Simonaitytė, V., Lankauskienė, R., & Gedminaitė-Raudonė, Ž. (2023). Servitization of farming: A new approach to local food systems building. European Countryside, 15(1), 1–17. https://doi.org/10.2478/euco-2023-0001
Virkkala, S. (2007). Innovation and networking in peripheral areas—A case study of emergence and change in rural manufacturing. European Planning Studies, 15(4), 511–529. https://doi.org/10.1080/09654310601133948
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Vidickienė, D. (2024). Territorial Servitization as a Challenge to Reorganizing the Rural Development of the Industrial Era. In: Rural Transformation through Servitization. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-031-47186-5_7
Download citation
DOI: https://doi.org/10.1007/978-3-031-47186-5_7
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-031-47185-8
Online ISBN: 978-3-031-47186-5
eBook Packages: Business and ManagementBusiness and Management (R0)