Organizing for servitization: examining front- and back-end design configurations
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 2 January 2018
Abstract
Purpose
Research suggests that to structure for servitization, organizations should separate their front- and back-end units by reference to high vs low contact activities. However, these prescriptions are overly simplistic and largely based on anecdotal evidence that fails to account for context. The purpose of this paper is to explore the design decisions taken by organizations in support of servitization.
Design/methodology/approach
A large-scale exploratory case study was conducted, consisting of embedded cases in three divisions of a UK-based, global manufacturing firm.
Findings
Each division provided different combinations of offerings (i.e. product-, use- and result-oriented). The findings suggest that front-end/back-end configurations differ according to the offering and can exist concurrently within the same organization, challenging the assumption that different configurations within an organization are not possible. The findings show that underlying contextual factors, such as the complexity and temporality of the offering, as well as the power of the customer, have implications for the structuring of servitizing organizations.
Research limitations/implications
This is a context-specific, qualitative case study conducted within a large original equipment manufacturer, yet the findings are analytically generalized.
Originality/value
In identifying the relevance of different design decisions in terms of customer contact, decoupling of activities and grouping of employees, the findings challenge the extant view that organizations simply split activities between the front- and back-end functions. The research identifies an additional design configuration – integrated project teams – involving a dominant customer dictating organizational interfaces. This research exposes the need for further investigation into how to organize for servitization in project-based contexts.
Keywords
Acknowledgements
The authors would like to thank the three anonymous reviewers and the associate editor for their insightful and valuable feedback.
Citation
Raja, J.Z., Chakkol, M., Johnson, M. and Beltagui, A. (2018), "Organizing for servitization: examining front- and back-end design configurations", International Journal of Operations & Production Management, Vol. 38 No. 1, pp. 249-271. https://doi.org/10.1108/IJOPM-03-2016-0139
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited