Servitization in Construction and its Transformation Pathway: A Value-Adding Perspective

Against the current social and technological background dominated by services and technology,new opportunities are opening up for the industrial transformation and upgrading of the construction industry.Considering the successful transformation and upgrading of the manufacturing industry through servitization,scholars and practitioners have begun to explore the possibility of servitization in the construction industry.Current practices and theory show that different understandings of servitization in the construction sector exist;however,they are still in their infancy and lack a deep and systematic awareness,which does not benefit the transformation and upgrading of construction through servitization.Therefore,this paper systematically analyzes the motivation,definition,and implications of servitization in construction based on the value-adding nature of servitization and considers the problems confronting the construction industry.To facilitate this development,transformation pathways for servitization in construction are analyzed from multiple angles,including value co-creation,service innovation,and networked operation,which are in line with the new trends in digital construction.In addition,based on the supporting elements of construction,which include finance,human resources,technology,materials,and equipment,this paper examines the impact of servitization on the construction industry’s ecology.In short,we expect that this systematic analysis and exposition can provide a holistic view of servitization in construction from the inside out for scholars and practitioners and can help to promote servitization in construction.

Servitization, Industry Heterogeneity and Manufacturing Firm Performance

In the process of rapid economic development,the competition in the manufacturing industry is becoming more and more fierce.As a strategic measure for many manufacturing firms to successfully improve firm performance,servitization has gradually attracted the attention of more and more managers and scholars.The study collected and processed the annual reports of manufacturing firms that disclosed information on CNINF in 2017.Through a series of screening work,the annual reports of 260 firms were finally selected as sample data.Through the regression test of the data,this study mainly discusses whether the industry type can regulate the relationship between servitization and firm performance.The results show that servitization can have a positive impact on firm performance.In addition,industry type can be used as a moderating variable to moderate the relationship between servitization and firm performance.On this basis,this paper puts forward some suggestions and countermeasures for manufacturing firms.

The Effects of Servitization on Manufacturing Firm Performance: Moderating Role of Marketing Capability

Based on the current development of China's manufacturing industry,this study analyses the relationship between servitization and firm performance,and explores the moderating role of marketing ability.The study collected and processed the annual reports of manufacturing firms that disclosed information on CNINF in 2017.Through a series of screening work,the annual reports of 260 firms were finally selected as sample data.The results of empirical analysis show that there is a positive relationship between servitization and firm performance.Marketing ability can moderate this relationship,in which marketing investment intensity positively moderates the relationship between service level and firm performance,and the proportion of salespeople negatively moderates the relationship between service investment intensity and firm performance.Based on these findings,this paper developed recommendations for managers of manufacturing firms.

Impact of Outward Foreign Direct Investment on Chinese Manufacturing Firms'Financialization and Servitization

This study examines the impact of outward foreign direct investment(OFDI)on Chinese manufacturing firms'financialization and servitization.Using a difference-in-differences approach with propensity score matching,we found that OFDI encouraged firms'financial and service activities.The effects of OFDI on financialization were stronger for firms specializing in short-term financial assets,operating in labor and technology-intensive sectors,investing overseas to pursue production,resources and markets there,and investing in non-OECD and Belt and Road Initiative(BRI)countries.Meanwhile,firms investing overseas were more likely to provide services at the sale or postsale stages.Outward foreign direct investment has also boosted the service activities of firms operating in the technology-intensive sector by investing overseas to seek resources and markets,as well as investing in non-OECD and BRI countries.Finally,OFDI partially influenced the extent of financialization and servitization of firms by affecting their profit-making ability.

Servitization of manufacturing in the new ICTs era:A survey on operations management

Servitization of manufacturing has become one of the main pathways for transition and upgrade in the manufacturing industry.New information and communication technologies(ICTs),such as the Internet of Things,Big Data,and Cloud Computing have enabled the servitization of manufacturing in terms of value creation,resource management,and supply chain management.This study presents a comprehensive review on the servitization in operations management in the era of new ICTs.A new value chain framework is proposed under the business model that revolves around servitization,which showcases the new activities and ways of implementation in the era of new ICTs.The virtualization,configuration,and evaluation of integrated manufacturing and service resources are analyzed.In particular,the methods used in new ICT-supported resource management platforms are surveyed.Problems in the supply chain management in manufacturing services(including the selection of partners,as well as the coordination,planning,and scheduling among members)are presented.This study concludes with a discussion on state-of-the-art servitization in operations management in the era of new ICTs.

Service-oriented manufacturing:A literature review and future research directions

This study presents a systematic review of the literature on service-oriented manufacturing(SOM).Specifically,we focus on the impact of SOM on firm operating decisions,which distinguishes this work from previous reviews.This study proposes a classification framework for SOM research based on product flow,from its design to its final disposal.Although SOM has been studied for many years,most related research remains conceptual.Our criterion for choosing papers is that they must be relevant to practical problems.This review aims to provide readers a guide that will facilitate their search for papers in their field of interest.More importantly,we hope that this review can provide insightful managerial implications for SOM.

Service outsourcing strategy decision for value creation in manufacturing firms

This study aims to resolve the difficult problem of manufacturers’service outsourcing strategy decision-making,with services divided into two types:hygienic and motivational.We build a value creation model for the manufacturer,service contractor,and customer under different outsourcing strategies,and we examine optimal outsourcing decision-making in various scenarios and its effect on the value creation of related entities.The results indicate that motivational services have a lower bound characterized by service utility.When the manufacturer derives services higher than this lower bound,it should operate its own motivational service and outsource the hygienic service to create greater value.When the manufacturer is limited by resources or capabilities and is required to outsource the motivational service,it can maintain value creation by setting an appropriate contract coefficient.The service contractor should undertake motivational services within the contract boundary negotiated by the manufacturer and conduct hygienic services outside the boundary.Theoretically,outsourcing both service types can maximize customer value,but this may not achieve the manufacturers’optimal value creation.