Service Science, Management, and Engineering:

Chapter 2

Servitization Strategy

Priorities, Capabilities, and Organizational Features

Yong Lin*, Yongjiang Shi^† and Shihua Ma^‡

^*School of Business, University of Greenwich, London, SE10 9LS, UK

^†Institution for Manufacturing, University of Cambridge, Cambridge, CB3 0FS, UK

^‡School of Management, Huazhong University of Science and Technology, Wuhan, 430074, China

2.1 Introduction

Servitization has been widely recognized by manufacturers as a strategy to get more revenues and competitive advantages from service units (Baines, Lightfoot, Benedettini, & Kay, 2009a; Neely, 2008; Schmenner, 2009; Vandermerwe & Rada, 1988) instead of products. It is expected to have many financial and strategic benefits for manufacturers. Although the considerable ...