Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Service capabilities and servitized SME performance: Contingency on firm age
Department of Management and Engineering, Linköping University, Linköping, Sweden.
Karlstad University, Faculty of Economic Sciences, Communication and IT, Service Research Center. Industrial Engineering and Management Programme, Linköping University, Linköping, Sweden.ORCID iD: 0000-0002-6589-8662
2018 (English)In: International Journal of Operations & Production Management, ISSN 0144-3577, E-ISSN 1758-6593, Vol. 38, no 4, p. 1144-1164Article in journal (Refereed) Published
Abstract [en]

Purpose: The purpose of this paper is to study the impact of back-office (BO) service capability and front-office (FO) service capability, and how firm age influences the impact of these service capabilities on small and medium size enterprise (SME) performance. Design/methodology/approach: Based on the prior literature on servitization and firm operational capabilities, hypotheses were developed on the impact of service capabilities on firm performance. These hypotheses were tested using a survey and externally sourced financial data on 224 SMEs in the software industry. Findings: FO service capability has a positive impact on firm performance of SMEs. The effect of BO service capability was weaker and partly contrary to expectations, showing a negative effect on firm performance for young SMEs. As hypothesized, the impact of both BO and FO service capability is moderated by firm age. Young SMEs benefit more from FO service capability. For older SMEs, BO service capability becomes increasingly more important. Practical implications: As different capabilities lead to different outcomes, SMEs need to carefully consider which service capabilities to invest in. As the relative importance of capabilities changes over time, SMEs need to be ready to change their strategic focus over time toward BO capabilities to attain optimal outcomes. Originality/value: The findings suggest that factors such as industry, firm size, and firm age affect the optimal servitization path, and that current understanding of servitization does not necessarily apply to all servitized firms. The study also provides further evidence of the impact of service capabilities on firm performance.

Place, publisher, year, edition, pages
Emerald Group Publishing Limited, 2018. Vol. 38, no 4, p. 1144-1164
Keywords [en]
Service management, SMEs, Firm performance, Servitization, Capabilities, Software firms
National Category
Economics and Business
Research subject
Business Administration
Identifiers
URN: urn:nbn:se:kau:diva-66732DOI: 10.1108/IJOPM-06-2016-0328Scopus ID: 2-s2.0-85042583979OAI: oai:DiVA.org:kau-66732DiVA, id: diva2:1191132
Available from: 2018-03-16 Created: 2018-03-16 Last updated: 2018-04-05Bibliographically approved

Open Access in DiVA

No full text in DiVA

Other links

Publisher's full textScopus

Authority records BETA

Witell, Lars

Search in DiVA

By author/editor
Witell, Lars
By organisation
Service Research Center
In the same journal
International Journal of Operations & Production Management
Economics and Business

Search outside of DiVA

GoogleGoogle Scholar

doi
urn-nbn

Altmetric score

doi
urn-nbn
Total: 4 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf