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Competitive advantage through service differentiation by manufacturing companies
Eawag Swiss Federal Institute Aquat Science and Technology.
Karlstad University.
Linköping University, Department of Management and Engineering, Quality Technology and Management. Linköping University, The Institute of Technology.
2011 (English)In: Journal of Business Research, ISSN 0148-2963, E-ISSN 1873-7978, Vol. 64, no 12, 1270-1280 p.Article in journal (Refereed) Published
Abstract [en]

This paper examines the relationship among the complexity of customer needs, customer centricity, innovativeness, service differentiation, and business performance within the context of companies that have made a service transition from pure goods providers to service providers. A survey of 332 manufacturing companies provides the basis for the empirical investigation. One key finding is that a strong emphasis on service differentiation can lead to a manufacturing firms strategies for customer centricity being less sensitive to increasingly complex customer needs, which can increase a firms payoff for customer centricity. In contrast, the payoff from innovativeness appears to be higher if the firm focuses its resources on either product or service innovation; that is, a dual focus does not work well. This paper discusses the implications of these findings for researchers and managers.

Place, publisher, year, edition, pages
Elsevier , 2011. Vol. 64, no 12, 1270-1280 p.
Keyword [en]
Service infusion in manufacturing companies, Customer centricity, Innovation, Service differentiation
National Category
Engineering and Technology
URN: urn:nbn:se:liu:diva-72649DOI: 10.1016/j.jbusres.2011.01.015ISI: 000296927600002OAI: diva2:461147
Available from: 2011-12-02 Created: 2011-12-02 Last updated: 2012-01-25

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