Internal levers for servitization: How product-oriented manufacturers can upscale product-service systems

Abstract

Manufacturing companies that venture into servitisation can experience difficulties when upscaling product-service systems (PSS) for further growth. This research study has two main objectives: first, to develop insight into the internal levers to increase firms’ servitisation capacity, and second, to apply a new methodology to support companies in upscaling PSS. For these purposes, we conduct an exploratory research study of eight manufacturing companies, consisting of both multiple-case and participatory action research methods. We find that manufacturers often experience challenges when either designing or rolling out PSS, which varies based on the company’s chosen strategy. Additionally, they can be confronted with an organisational logic that hinders PSS upscaling efforts. This research offers guidance to practitioners facing internal barriers for servitisation, providing a new method to explore, prioritise and work out concrete PSS-enhancing projects.

Keywords:

• product-service systems
• design for service
• manufacturing strategy
• servitisation
• upscaling