A method for identifying customer orientations and requirements for product–service systems design

For manufacturers, developing product–service systems (PSSs) is getting more important because of the trends of servitisation and creating social value. A PSS is a social system where multiple actors mutually provide products and services. A PSS design, therefore, must take into account various actors as customers. However, existing methods provide an insufficient solution as to how various customers should be handled in an analysis to identify and accommodate various customer preferences and requirements. To tackle this issue, this article proposes a new method of identifying customers’ orientations and requirements for PSS design. The proposed method employs a combination of topic analysis, persona and scenario approaches. The effectiveness of the method is demonstrated with its application to an urban development case. Through the demonstration, its practical benefits are concluded as follows: consistent and logical results of requirement analysis and insights into a new market for manufacturers.     

An integrated product service system modelling methodology with a case study of clothing industry

Product-service system (PSS) is a business model designed to help enterprises achieve servitisation. PSS not only considers service-oriented logic to increase product value but also supports enterprises with waste reduction. An increasing number of studies have emphasised PSS development. However, much of the literature remains focused on separate development phases, such as idea generation or a specific product or industry application. An integrative system modelling methodology designed to help companies formulate a complete scenario is absent. This study provides a methodology for developing a systematic and complete PSS strategy. It combines failure modes and effects and importance-performance analysis to identify potential customer needs. A service-product development matrix and a product-service life cycle analysis are developed. Following the service concepts generation, grey relational analysis and scenario analysis are utilised to evaluate the alternatives. A case study involving the clothing industry was conducted to test the proposed approach. Results indicate the methodology can help service providers identify existing problems and develop service alternatives systematically. These alternatives can then be evaluated and the scenario which achieves the highest profitability, is the most environmental friendly, and is the most social friendly can be identified.     

Developing a product–service system through a productisation strategy: a case from the 3PL industry

A Product–Service System (PSS) is created by combing a tangible product and an intangible service into one integrated offering. Thus, a PSS can be achieved by a production company adding intangible services to a product using a servitisation strategy or by a service company adding a tangible product to a service by means of a productisation strategy. The focus of this paper is on the latter. Our work demonstrates a significant gap in the literature in this area. To address this, we adapt an existing PSS conceptual framework as a means to identify the driving and restraining forces considered by a service company as it explored the possibility of pursuing a PSS productisation strategy. The conceptual framework is applied in an exploratory case study with a 3PL service provider. Application of the framework reveals new driving and restraining forces not previously discussed in the literature. Furthermore, it allows a preliminary quantification of the driving and restraining forces using a force field analysis approach. Our work contributes towards the expansion of the empirical knowledge base in the area of PSS.     

Product-Service Systems for servitization of the automotive industry: a literature review

Nowadays companies are facing several transformations of their activities, empowered and pulled by technological and social evolutions over the few past decades. As competitiveness is a leitmotiv in the market economy paradigm, it is necessary to improve activities through excellence and new offers. In a focus on the consumers’ needs, the limits between tangible and intangible offer are challenged through new kind of offers merging products and service under one common offer. Manufacturing companies, and more precisely the automotive industry, endeavour to integrate new constraints of sustainability, economic globalisation and new ways of consumption made possible with this new kind of offerings. This supports the opportunity to change consumption offers, historically driven by production and consumption of tangible assets. The paper explores a key concept to operate this shift towards a new type of offer gathering products and service into an integrated bundle entitled product-service system (PSS). This paper proposes a review of PSS definitions, methodologies and its applications to clarify the contribution of the literature in enabling its adoption. Requirements to adopt PSS are extracted from case studies and methodologies for servitization are evaluated as means to overcome barriers of PSS adoption. A specific focus is given on the automotive industry.     

Hybrid simulation modelling as a supporting tool for sustainable product service systems: a critical analysis

Manufacturing companies are increasingly shifting their value proposition from a product-centric perspective to Product-Service-System (PSS). This evolution allows companies to improve the customisation of their offer and to contribute to reduce material flows and consumption, thus enhancing sustainability. However, when companies introduce PSS offers, they have to face higher complexity and dynamism, as customer behaviours, process requirements and sustainability assessment must be considered during the design and the development of the new solutions. In this paper, after the identification of the main PSS dynamic features, the authors argue that business process simulation (BPS) could represent an effective tool to cope with the dynamics and the complexity entailed in a sustainable PSS. This paper analyses and compares existing BPS approaches identifying the hybrid simulation (HS) modelling as a promising approach. In fact, according to the critical PSS features, HS allows grasping PSS features and integrating customer, company and environmental sustainability perspectives into the model, thus, supporting effective PSS design and assessment. These findings have been validated in a test case where a hybrid model (integrating Discrete Event Simulation with Agent-Based Modelling) has been compared against a pure DES model. The results highlight the advantages of the hybrid modelling approach with respect to DES in supporting the engineering of a sustainable, customer-oriented PSS provision process.     

A quantitative investigation of the role of information and communication technologies in the implementation of a product-service system

This paper reports evidence from a survey, aimed at testing whether and how Information and Communication Technologies (ICTs), which enable the adoption of product-service systems, can contribute to value creation. This analysis builds on previous contributions, according to which companies that are enriching their product offering through value-added services (the so-called servitisation strategy) often report lower levels of profitability, owing to the poor performance of their operating process. A wide stream of research claims that companies that invest in ICTs can enjoy valuable outcomes, since the adoption of such technologies results in processes that are more efficient and more responsive. Our hypothesis concerns the possibility of leveraging ICTs at operating process level so as to pursue a servitisation strategy. The in-field analysis presented in this paper concerns a sample of 109 companies located in Italy; data collected through the survey have been analysed using the structural equation modelling approach. The evidence presented demonstrates that ICTs can have a relevant impact on value creation because they lead to superior responsiveness of operating processes and to sound improvements in the product offering. In particular, companies that are able to embed such superior responsiveness into their product offering can further boost value creation.     

Characterising product-service systems in the healthcare industry

Since the 1970s, marketing and innovation management communities have been investigating how to incorporate customer-desired functions into new product and service designs. These wide-ranging enquiries have shed light on the impact of lead-user engagement in new product development, demonstrated ways to examine service production and delivery, such as the use of ‘line of visibility’ in service blueprints and the modelling of ‘service encounters’, and have created new terms such as ‘value co-creation’. Despite these efforts, recent reviews have identified the lack of an holistic approach to new product-service system (PSS) development. This deficiency needs to be rectified, especially for complex PSS developments in regulated industries such as healthcare, as often there are multiple stakeholders posing conflicting priorities to the development team.This paper describes a novel PSS characterisation approach that supports the early-stage new PSS development process. The approach is originated from eleven healthcare case studies, involving twenty-five new products, services and PSSs. Following the methodology of action research, further cases are selected for the application of the approach to a new product, service or PSS concept in facilitated workshops. Initial implications of employing this approach in three cases are discussed in this paper.     

Product service system transition method: building firm’s core competence of enterprise

Product service system (PSS), applicable in numerous fields, is an innovative business model integrating products, services, and supporting infrastructure. It has been known as a promising approach to realise sustainable development of both enterprises and environment. However, only a few studies were addressed to support the PSS transition of enterprises. Thus the aim of this study is to develop a PSS transition methodology, comprising a quantitative PSS classification framework and transformation procedures. In order to classify PSS typology, rough set theory is applied, and as a result, a set of classification rules is derived from the analysis of 40 contemporary PSS service providers based on their attributes and the decision rules. In addition, this study also proposes a PSS transformation process that considers firms’ core competencies and current PSS types. Moreover, the result also demonstrates the discovery of a new PSS type, platform-oriented PSS. The discovery and definition of this new type extend the current PSS typology. Finally, the proposed transition methodology is applied to an automotive company as a case study, illustrating the advantages and possibilities of this research.     

RFID-enabled product-service system for automotive part and accessory manufacturing alliances

Automotive part and accessory manufacturers (APAMs) at the lower tiers of automotive vertical supply chains have been responding to major initiatives taken by leading vehicle assemblers in adopting RFID (radio frequency identification) and ubiquitous computing technologies to alleviate their manufacturing systems. RFID-enabled real-time traceability and visibility facilitate and enhance the implementation of advanced strategies such as just-in-time (JIT) lean/responsive manufacturing and mass customisation (MC). This paper reports on findings gained from a series of industrial field and pilot studies conducted within collaborating companies. Being typically small and medium sized, APAMs are faced with business and technical challenges that are summarised by the so-called ‘three high problems’, namely high cost, high risk and high level of technical skills. This research takes a more cost-effective pragmatic approach to overcome the ‘three high problems’ by sharing out the problems among APAMs while taking a longer-term, expensive and lengthy, approach to absolutely reduce the problems. The sharing approach requires the establishment of an innovative service-oriented framework, abbreviated AUTOPS, based on the Product Service Systems (PSS) business model. RFID hardware devices are innovated into gateways as hardcore products to formulate a PSS. RFID-enabled real-time services are deployed at a common platform across members of an APAMs alliance. AUTOPS facilities are shared by APAM alliance members to reduce the start-up investment costs, reduce the level of required specialist skills, speed up installation processes and streamline maintenance services, and improve the reliability of the RFID gateway services.     

The effectiveness of the ISO 9001 quality management system and its influential critical factors in Greek manufacturing companies

The purpose of the study is firstly, to empirically validate the conceptual structure of the effectiveness of the ISO 9001 quality management system (QMS) in manufacturing companies and secondly, to determine the critical factors that have a significant impact on the QMS’s effectiveness. A research study was carried out through a structured questionnaire in a sample of 163 ISO 9001 certified Greek companies. Exploratory and confirmatory factor analyses are applied to extract and validate latent constructs, while their relationships are determined through structural equation modelling. The analyses confirm the conceptual factorial structure of the ISO 9001 QMS’s effectiveness which consists of three dimensions – the ISO 9001 objectives (prevention of non-conformities, continuous improvement and customer satisfaction focus). The analysis also confirms the five dimensions of the critical factors for ISO 9001 QMS effectiveness identified in the literature (internal motivation, external environment pressure, company attributes, employee attributes and quality system attributes). However, only the company internal motivation, company attributes and employee attributes have a significant impact on the ISO 9001 QMS’s effectiveness.     

基于模糊DSM的产品服务系统流程模块化设计

产品服务系统(Product-service System,PSS)是制造企业为满足顾客价值需求,提供的产品和服务集成的解决方案,主要分为三种类型。面向结果的PSS是一种典型类型,其本质上可以看作是一个特殊的服务。为了对其进行有效配置,需要研究基于流程的模块化开发方法。设计结构矩阵(Design Structure Matrix,DSM)是对流程进行模块划分的常用工具,然而传统的DSM是一个二元布尔矩阵,只能反映元素之间是否存在依赖关系。模糊设计结构矩阵(Fuzzy Design Structure Matrix,FDSM)可以对元素之间的依赖关系进行定量表示。权重有向图用来表示流程活动间的依赖关系,并映射到FDSM中,然后用传递闭包法获得模糊等价矩阵。在选取适当的阈值后,根据得出的截矩阵对相应的流程活动进行聚类实现模块划分。最后,以空调温度服务的模块化设计为例,验证了所提方法的有效性。     

Psychic Distance,Innovation, and Firm Performance

Previous research suggests that internationalization improves a firm’s ability to innovate, but the effect of internationalizing into specific target markets or destinations on the innovation ability of firms has not been fully investigated. This study examined whether the psychic distance between target market and home market affects firms’ propensity to innovate. The starting assumption was that perception of a high degree of differences and subsequent environmental uncertainty when expanding into psychically distant markets triggers strategies for interacting and integrating with the market environment. These include producing and adopting innovations to processes and products and to organizational strategy, structure, and administrative procedures to cope with the new environment and overcome uncertainties. These innovations and the associated competitive advantages can improve firm performance. Hypotheses regarding the relationships between psychic distance, innovation, and firm performance were tested here by structural equation modeling using data from 186 export ventures into 23 international markets by Swedish companies. The results indicate that the link between psychic distance and firm performance is mediated by innovation.     

The optimisation of maintenance service levels to support the product service system

The dematerialising concept has formed a new management model: the product service system (PSS). PSS means that enterprises have changed the management concept of ‘product foremost and service second’ to ‘service-based product’ in design products, and the products are the tools produced and innovated for service. Therefore, the physical logistical service replaces the virtual service. However, during the transformation, the product service system also needs to emphasise cost, customers’ satisfaction and environmental protection. This study analysed different types of integrated maintenance service and used multi-attribute utility analysis to discuss the overall utility of maintenance service. The operation cost, CO ₂ emission and service satisfaction indicators of different maintenance service models were used as decision variables to determine the optimal maintenance system. Finally, a case study is described to demonstrate this research.     

Effects of social capital on operational performance: impacts of servitisation

Studies on servitisation have largely overlooked the roles of social capital with suppliers and knowledge management. We propose a moderated mediation model to investigate the impacts of servitisation on the mechanisms through which social capital with suppliers improves operational performance. The hypotheses are empirically tested using structural equation modelling and data collected from 276 manufacturing firms in China. The results show that social capital improves operational performance both directly and indirectly through knowledge management, and the relationships are influenced by servitisation. In particular, social capital improves operational performance directly and indirectly through knowledge combination in servitised firms, whereas social capital only improves operational performance indirectly through knowledge acquisition in traditional manufacturers. The findings contribute to the literature by revealing that the effects of social capital with suppliers on operational performance are partially mediated by knowledge acquisition and knowledge combination and the mediation effects are moderated by servitisation, and by providing insights into how to design purchasing and production systems to profit from servitisation.     

An Empirical Study on the Internal Control Efficiency of Listed Engineering Companies

The authors carried out an empirical study on the internal control efficiency of publically listed engineering companies in China. This study presents an exploration of the relationship of independent director ratios, audit committee quality and auditor independence with the internal control efficiency of publically listed engineering companies and forward suggestions and recommendations on raising the internal control efficiency of publically listed engineering companies.     

Does Board Co-Working Experience Influence Directors’ Decisions Toward Internationalization?

Despite the importance of board capital in a firm’s corporate strategic orientation and the high degree of international expansion that many firms have experienced in recent years, little or no research has explored how board capital affects a firm’s internationalization decision. Drawing upon resource dependence theory, this study argues that board capital may help increase the firm’s degree of internationalization and that board co-working experience may facilitate the contribution of directors with human and social capital to firm internationalization. The results indicate that board capital (directors’ international experience, directors’ industry-specific experience and directors’ board appointments) is positively associated with internationalization and that board co-working experience has a positive moderating influence on the board capital-internationalization relationship. One important implication of the empirical evidence is that firms trying to expand internationally should consider nominating directors with rich human and social capital to the board because such directors can provide strategic advice and facilitate access to critical information and valuable resources needed for internationalization. Additionally, those international firms might be advised to consider board tenure when appointing board directors because board co-working experience allows directors to integrate their knowledge of the firm’s internal affairs with their expertise in the area of international strategy and to combine their knowledge properly to address firm-specific issues, consequently enabling them to address international issues effectively.     

Growth of De Alio and De Novo firms in the new and renewable energy industry

Firms entering new markets are either de alio, with business experience in other areas, or de novo, without such experience. De alio firms enter markets in advantageous situations, while de novo firms enter markets with innovation capabilities. This study determines whether de alio or de novo firms achieve faster sales growth as well as the duration of their growth when they enter the new and renewable energy industry. Panel data for global companies that entered the new and renewable energy industry after the 1990s show that de alio firms achieved higher growth rate than did de novo firms in the initial stages, but that entry type’s contribution to sales growth gradually decreased and disappeared four years after entrance. The results indicate that accumulated resources and new entrants’ former experiences in other industries have positive effects, contributing to initial success after market entry for a limited time. This finding suggests that firms improve the R&Cs (resources and capabilities) that are appropriate to their new environments for sustainable development.     

Quality Dimensions of Intellectual Capital in Serbian Fruit Industry

The aim of this research was to analyze intellectual capital in Serbian fruit companies with respect to size, fruit sector, and certification status. Representatives from 75 companies were interviewed. Survey data were analyzed through 56 items, grouped into three sub-categories of intellectual capital: human capital, structural capital, and relational capital. This study provides insight into how the fruit industry in a developing country perceives intellectual capital and demonstrates the use of developed models from other industries in the food industry. The novelty of this approach was the dimension reduction of intellectual capital factors into two distinct directions, namely, ‘customer quality’ and ‘stakeholder quality’, confirming quality as a dominant basis for both customers and stakeholders. Micro companies and non-certified companies are focused on customers, while medium-sized and certified companies are focused on satisfying requirements from all stakeholders. This study provides insight for engineering managers engaged in using intellectual capital models in the food/fruit industry. The presented model explores the potential of intellectual capital in determining quality improvement opportunities and improving company performance.     

Supply chain risk modelling and mitigation

In today’s global competitive environment, supply chains are more susceptible to vulnerability due to the increasing occurrence of internal and external risk events. In addition, the trend associated with lean management, which involves reducing inventory, leads to more dependency of supply chain partners on each other which exacerbates risk exposure of companies in the supply chain. This creates the need for more effective management of supply chain risks. In this research, a methodology based on Bow-Tie analysis and optimisation techniques is proposed to quantify and mitigate supply chain risks. The proposed methodology takes into consideration risk interconnections, and it identifies the best combination of mitigation strategies under budget constraints. A real case study from a high-end server manufacturing environment is presented. Results from the case study showed that the proposed methodology for risk modelling and mitigation can effectively be used to quantify the risks and achieve the required risk reduction at minimum cost while considering risk correlations.