Achieving competitive advantage in service supply chain: evidence from the Chinese steel industry

Higher market complexity and increasing competitive intensity are forcing traditional trading companies to change their positions in the goods delivery services supply chain by continuously extending the service business through interaction with customers. However, the existing literature tends to be somewhat vague in defining interaction behaviors with different customers and a service strategy for the service integrator wishing to move along the continuum. The purpose of this paper is to identify service strategies that correspond with specific customer demands.

Using multiple methodologies and data sources, the study highlights three different service strategies including resources supply capability, demand management and strategy fit with buys.

The study finds that these strategies have different impacts on competitiveness for different types of downstream enterprises. For large enterprises, resources supply capability and strategy fit are significant factors – while for small and medium‐sized enterprises, resources supply capability, as well as demand management play an important role to supplier's competitiveness.

Based on the research, the paper draws the conclusion that it is important to understand the buyer's demand and offer the service that the buyer really needs.