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Purpose – The article aims to combine research priorities in the service domain with the emerging topic of service management for the base of the pyramid (BoP). This combination allows us to construct an agenda for service research at the BoP. Design/methodology/approach – The paper uses bibliographic methods for structuring the BoP contributions, and a literature review for the current research priorities in the service domain. Findings – First, the paper highlights the main topics in the emerging BoP debate. Second, the paper constructs a research agenda for service management at the BoP. This agenda can guide service researchers in the selection of feasible empirical fields, support them in finding appropriate research designs, and finally, help them to develop suitable theoretical perspectives. Research limitations/implications – Limitations arise from the literature review and bibliographic methods themselves. Practical implications – Service research on the BoP provides new ideas for practitioners interested in learning about BoP markets, strategies, and entrepreneurial initiatives. Social implications – Understanding the need to explore BoP activities is fundamental to working with a huge segment of society, not only as passive consumers, but also as genuine entrepreneurs capable of creating and managing “inclusive” innovations. Originality/value – The research agenda for future service management offers a relevant source of ideas and guidance for interested researchers to rethink their empirical fields, research approaches, and theoretical perspectives. [ABSTRACT FROM AUTHOR]

Purpose: Investigating how the separation of the product and service business mediates the effect of management's commitment to the service strategy on service performance in product manufacturing firms. Methodology: The authors surveyed 216 European manufacturers in the high-value durable equipment industry moving into the service business. After assessing adequacy of measurement scales, the authors tested statistically for mediation. Their results hold when replicating the study using a structural equation modeling approach and while testing for common method biases. Findings: The authors find evidence that the creation of a separate service organization, organized as a profit center, has a significant positive mediating effect between managerial commitment and the services' financial performance. Although separation also has a positive mediating effect between commitment and non-financial performance, organizing services as a profit center had a negative effect on the service's non-financial indicators. Research Limitations: Research limitations include (a) a sample limited to German-speaking firms in the high-value durable equipment industry, (b) measurements based on self-reported managerial perceptions of service performance, and (c) conceptualization of service as a single strategic response. Practical Implications: Although the complementarity between products and services is high in the market, the authors' research suggests few synergies to leverage their integration inside the organization. Accordingly, management should, at least in transition efforts similar to the ones included in this sample, look into creating a separate and distinct service organization. Value/Contribution: This research was driven by practical concern on how to organize service operations in a manufacturing firm. Initial framing of the research through the creation of the construct of separation of product and service business was used. [ABSTRACT FROM PUBLISHER]

Purpose - The purpose of this paper is to explore the patterns of service strategy changes in manufacturing firms and indicates how each pattern is interrelated with modifications in organizational design elements. Design/methodology/approach - The paper draws on a longitudinal study using a survey of 97 manufacturers of capital goods. In addition, 15 case studies have been conducted. Survey and qualitative data are obtained in 1997, 2001, and 2004. Findings - The findings highlight four patterns of service strategy changes: from customer service strategy to after-sales service provider, from after sales-service provider to customer-support service provider, from customer-support service provider to development partner, and from customer-support service provider to the outsourcing partner. Evidence of specific alignment between service strategy and organizational design elements is provided. Research limitations/implications - The main limitation of this paper is the purposive sample. Practical implications - Managers should follow the patterns of service strategy changes by extending the service offerings and modifying the organizational design elements. Originality/value - Previous studies investigate service strategies and organizational design elements only at a specific time, which leads to a static perspective. This paper offers insights into interrelations among service strategy changes and organizational design elements. [ABSTRACT FROM AUTHOR]

Despite the high level of interest in how organizational structures facilitate service orientation in capital goods manufacturing companies, researchers have neglected this field. This article explores 4 different organizational approaches contributing to service orientation: (a) product strategic business unit (SBU), (b) product-service SBU, (c) service-product SBU, and (d) service SBU and product SBU. Each organizational approach reflects a unique degree of service orientation that leads to different levels of performance outcome. The description of organizational approaches enlightens the discussion of integration and the separation of product and service business. Complementary to existing research, this article clarifies whether companies should integrate or separate service and product functions in order to achieve service orientation. [ABSTRACT FROM AUTHOR]

Purpose - This article seeks to answer the following research question: How does the focus of attention and situated attention contribute to the formulation and implementation of the service orientation in the business strategy? Design/methodology/approach- Structural equation modelling is used as a research methodology. Findings - The paper suggests that the formation and implementation of service orientation in the business strategy is influenced strongly by managerial attention. Research limitations/implications- The results suggest that a survey is suitable for investigating managerial cognition and attention, but future research should benefit from obtaining data on managerial attention through interviews or secondary data such as company documents. Practical implications - The main effect on strategy implementation and the moderating role of situated attention suggest that managers should be aware of the potential inertia by implementing a service-oriented business strategy. The main effects for strategy formulation suggest that the formulation of a service-oriented business strategy is triggered through decreasing product margins in the case of product-oriented companies, whereas it is triggered by .increasing customer expectations for service-oriented companies. Originality/value - The study examines the moderating effects of focus of managerial attention and situated management attention on the service orientation of business strategy. [ABSTRACT FROM AUTHOR]

In order to meet the increasingly more complex needs of customers and respond to decreasing product margins, product-oriented firms have developed a growing interest in extending their service business. Over the last couple of years, most product-oriented companies have explored the numerous opportunities offered by traditional customer service and product-related services. Currently, these opportunities have reached a certain level of maturity. A number of practitioners and theorists stress the growing importance of customer support services. However, the entry point to the theorizing is the observation that very few product-oriented firms have already innovated customer support services successfully. In most firms, cognitive biases limit the motivation of managers to facilitate creative potential for new customer support services. In this paper, four cognitive biases are elaborated through 12 mini-cases and 8 in-depth cases. The results suggest that disbelief in the financial potential, risk aversion, tendency to set over-ambitious objectives, and fundamental attribution error plays a critical role in creating customer support services. These four cognitive biases, and the key factors in overcoming them, provide guidance for managers who aim to facilitate creative potential for customer support services. [ABSTRACT FROM AUTHOR]

Purpose of this paper. The existing literature remains silent on the necessary antecedents for developing customer support services (CSS). This paper constitutes an attempt to close part of this gap by addressing the following research question: What are the antecedents for developing CSS in machinery and equipment manufacturing companies? Design/methodology/Approach. The unit of analysis was a Strategic Business Unit (SBU) in both German and Swiss machinery and equipment manufacturing companies. The data collection is based on a broad survey among 212 firms. The hypothesized model was estimated by means of structural equation modeling techniques. Findings. The results suggest that the positive associations of the external environment and orientation of the business strategy towards CSS are supported in terms of significance and size of effect. The orientation of the business strategy towards CSS is also positively related with organization of development activities, service manager decision-making authority, and creation of an innovation culture in the service organization. Furthermore, the overall profitability is influenced positively by these three factors of organizational design. Research Limitations/Implications (if applicable). The study only concentrates on machinery and equipment manufacturing companies. It would be also useful to examine whether similar relationships hold in other manufacturing industries. Practical Implications (if applicable). Machinery and equipment manufacturing companies which wish to switch from being a provider of product-related services for the installed base, to being a service provider offering CSS, must confront and meet the challenge of finding an optimal alignment between external environment, business strategy and factors of organizational design. What is original/value of paper. To best of the author's knowledge, there has been no empirical research which addresses how to successfully implement a strategy for offering CS internally. Thus, the study attempts to address an important research gap. Creating sustainable competitive advantages means that machinery and equipment manufacturing firms must shift the emphasis of their business from providing only product-related services for the installed base to offer customer support services as a service provider. In this context, the research focuses on two important issues. First, it focuses on the proper alignment among external environment such as competitive intensity and customer expectations, corporate strategy's orientation towards customer support services and organizational factors to support the development of them. Second, the moderating effect of top management recognition and a service orientation which permeates corporate culture and human resource management is analyzed. Based on a survey, the paper illustrates that the business strategy for customer support services and the organizational factors such as service manager decision-making authority, organization of development activities, and creation of an innovation culture play important roles in achieving greater overall profitability in a changing external environment. The intensity of the effects depends additionally on the moderating effects of top management recognition and a service orientation which permeates corporate culture and human resource management. [ABSTRACT FROM AUTHOR]

Purpose — This study seeks to examine how Chinese culture affects business-to-business marketing strategies and service revenue in manufacturing companies. Design/methodology/approach — The paper used a combination of qualitative research approaches, namely interviews, longitudinal study and bipolar case studies. The sequence of the qualitative research approaches was chosen to maximize internal and external validity. Findings — The findings expose the impact of the characteristics of Chinese culture on a firm's potential to generate high service revenues in business marketing. Research limitations/implications — The study has possible location- and industry-specific limitations. Originality/value — The implicit logic for increasing service revenue starts with overcoming typical and, in some respects, limiting cultural characteristics. These characteristics limit business-to-business marketing for increasing service revenue. Monitoring the effects of Chinese culture and gaining an understanding of how they have to be managed provides some guidance for managers to generate high service revenues. [ABSTRACT FROM AUTHOR]

Purpose - This paper attempts to provide a better understanding of behavioral processes and their impact on the transition from products to services. Design/methodology/approach - Case studies are the main tool of theory development. The paper focuses mainly on German and Swiss product manufacturers, whose products require a high level of customer investment. Findings - The objective was merely to explain behavioral dimension of transition. The paper indicated seven behavioral processes which play a critical role during the transition. Managerial service awareness and role understanding, as well as employee service awareness and role understanding seem to be the right triggers to change the behavioral processes in the desired manner. Research limitations/implications - The main focus was on the German and Swiss machinery and medical equipment manufacturing industries, and the remarks are limited to these sectors. Practical implications - The key managerial implications and recommendations can be formulated as follows: establish a "value-added" managerial service awareness; change managerial role understanding - from traditional customer support to business manager; establish a "value-added" employee service awareness; and change employee role understanding - from selling products to providing services. Originality/value - The authors were able to add a complementary perspective to existing literature on the transition process from products to services. For service management theorists, it is suggested that the transition from product manufacturers into service providers is influenced strongly by several behavioral processes. A complete theory of the transition process requires an interdisciplinary theory that integrates service management and human decision making. [ABSTRACT FROM AUTHOR]