When servitized manufacturers globalise: becoming a provider of global services

Abstract

PurposeTo increase the global competitiveness of their service business, servitized manufacturers transition towards global services. Yet, the literature has not addressed this development. This study is one of the first to investigate how servitized manufacturers can manage the globalisation of their service business.Design/methodology/approachThe study explores two cases of servitized manufacturers that transitioned from a local organisation of multi-domestic international services to a global-service organisation. The data were collected via semi-structured interviews, observations, and secondary sources.FindingsThe authors identify four elements of global service provision: operating model, global performance management, relationship governance, and staffing and employee development. The authors discuss each element and the connections between them, which the authors summarise in a proposed framework for global service provision.Originality/valueThe contributions of this research relate to the proposed framework of global service provision, which extends current conceptualisation of globalisation of routine services. The authors show the unique elements of global service provision of servitized manufacturers and discuss the theoretical and practical implications of the work.