NDLI: Why Do Servitized Firms Fail? A Risk-Based Explanation

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Why Do Servitized Firms Fail? A Risk-Based Explanation

Content Provider	Semantic Scholar
Author	Benedettini, Ornella Neely, Andy Swink, Morgan
Copyright Year	2015
Abstract	Purpose – In an effort to further explain why manufacturing firms that move towards service provision often do not achieve the financial benefits they would expect, the purpose of this paper is to examine the impact of service additions on the risks affecting the firm. Design/methodology/approach – Using data drawn from a sample 129 bankrupt manufacturers (75 servitized and 54 non-servitized) and a categorization framework of failure risks, the study explores the impact of the presence of a service business on environmental and internal bankruptcy risks that a manufacturing firm must face. Findings – The study finds that the presence of a service business leads to a greater number of bankruptcy risks for the supplying firm. This is essentially because of greater internal risks. In addition, two types of service offerings are identified – demand chain and product support services. When firms offer demand chain services, they are also exposed to greater environmental risks. Research limitations/implications...
Starting Page	946
Ending Page	979
Page Count	34
File Format	PDF HTM / HTML
DOI	10.1108/IJOPM-02-2014-0052
Volume Number	35
Alternate Webpage(s)	https://cambridgeservicealliance.eng.cam.ac.uk/resources/Downloads/Monthly%20Papers/2015DecPaperWhyDoServitizedFirmsFail.pdf
Alternate Webpage(s)	https://www.repository.cam.ac.uk/bitstream/handle/1810/254257/Benedettini%20et%20al%202015%20International%20Journal%20of%20Operations%20&%20Production%20Management.pdf?isAllowed=y&sequence=1
Alternate Webpage(s)	https://doi.org/10.1108/IJOPM-02-2014-0052
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article

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