Title: Service transition: finding the right position on the goods-to-services continuum

Authors: Anders Fundin; Lars Witell; Heiko Gebauer

Addresses: School of Innovation, Design and Engineering, Innovation and Product Realization, Mälardalen University, 631 05 Eskilstuna, Sweden. ' Service Research Center, Karlstad University, SE-651 88 Karlstad, Sweden; Linköping University, 581 83 Linköping, Sweden. ' Department Innovation Research in Utility Sectors (Cirus) Eawag: Swiss Federal Institute of Aquatic Science and Technology, P.O. Box 611, Ueberlandstrasse 133, 8600 Dübendorf, Switzerland

Abstract: The aim of this paper is to describe and further develop existing models of service transition; that is, how companies position and move on the goods-to-services continuum. This study concludes that service transition can be profitable for manufacturing firms as long as they do not become stuck in a mismatch between their organisational arrangements and their offerings. The paper contributes by: providing an overview of companies| positions on the goods-to-services continuum, introducing movements on the continuum, suggesting service development as a possible engine of renewal and providing empirical evidence on the relationship between positions on the continuum and profit margins.

Keywords: service transition; service strategy; service infusion; goods-to-services continuum; modelling; manufacturing firms; service development.

DOI: 10.1504/IJMOM.2012.043961

International Journal of Modelling in Operations Management, 2012 Vol.2 No.1, pp.69 - 88

Published online: 21 Aug 2014 *

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