New Ph D Thesis: Service Orientation in Manufacturing Firms

What happens when manufacturing companies, who previously focused on products only, begin to focus on services? What challenges are they put up against and how can they face them? This is what Nina Löfbergs thesis is about.

Globalization and increased competition from low-cost countries has pushed many Swedish manufacturing companies firms to focus on services rather than only products. However, this service initiative has brought a number of challenges; for example, the services are not as profitable as hoped, the employees find it difficult to sell the services and the customers are not interested in buying them.
- The aim of my thesis is to understand these challenges and how companies deal with them using the product and service logic. Three dimensions of logic are focused: perspective on value creation, service strategy and service offering, says Nina Löfberg.

The companies I studied have traditionally applied a product logic, which means that with basis of their own technological capabilities have developed new products and services which they then tried to sell to as many customers as possible. The companies that instead applied a service logic have developed and shaped their offerings based on customer problems and requests, which to a greater extent have resulted in customized product and service offerings.

Basically, the approach of the companies is better suited for products but not as good for services. To offer advanced services a different mindset than what many manufacturing companies are accustomed to is required. To be successful requires in many cases that the employee’s views on how to create value for the customer is changed. My results show that it is facilitated when the service becomes valued and seen as important in itself, rather than as a complement to a product. To separate product and service offerings and begin charging for services provided proved to be an important step in the process, says Nina Löfberg

The title of the thesis is Service Orientation in Manufacturing Firms. The defense took place on June 5th, at Karlstad University. Opponent was Associate Professor Daniel Kindström, Linköping University. The dissertation can be ordered through infoctf@kau.se or downloaded here >

Contact
Ph D Nina Löfberg, CTF, +46-54 700 2512, nina.lofberg@kau.se