No Permanent Friend or Enemy: Impacts of the IIoT-Based Platform in the Maintenance Service Market

Author:

Pei Jun12ORCID,Yan Ping12ORCID,Kumar Subodha3ORCID

Affiliation:

1. School of Management, Hefei University of Technology, Hefei 230009, China;

2. Key Laboratory of Process Optimization and Intelligent Decision-Making, Philosophy and Social Sciences Laboratory for Data Science and Smart Social Governance, Ministry of Education, Hefei 230009, China;

3. Fox School of Business, Temple University, Philadelphia, Pennsylvania 19122

Abstract

As the industrial Internet-of-things (IIoT) is becoming increasingly valuable, manufacturers are eager to establish IIoT-based platforms for preventative maintenance (PM). These platforms reposition the roles of manufacturers and reshape the patterns of the after-sales service market. Manufacturers can adopt either the competitive strategy by introducing improved after-sales services to compete with independent maintenance, repair, and operations firms (MROs) or the “coopetitive” strategy by simultaneously opening the platform to these MROs. However, relevant research on this topic remains scarce. Hence, our study fills this gap by investigating a manufacturer’s decision for the IIoT-based platform and the subsequent relationship with an MRO. First, we find that even when the product value is relatively low and the IIoT adoption increases PM cost; interestingly, it is sometimes beneficial for the manufacturer to establish the platform. Next, we find that even if the royalty revenue is lower than the increased IIoT costs, the manufacturer may sometimes still adopt the coopetitive strategy of opening the platform. Moreover, with the opening of the platform, the manufacturer pays more technology investment, even in the competitive market. Furthermore, whenever the manufacturer opens the platform, the MRO can profit more by accessing the platform. Hence, there is sometimes a win-win equilibrium with the IIoT adoption. In addition, we find that the opening of the platform sometimes causes less customer surplus but generates more social welfare. Following the IIoT adoption, our findings offer insightful takeaways for the manufacturer’s decisions on the establishment and opening of the platform, the MRO’s reaction, and policymakers’ welfare policies. This paper was accepted by Jeannette Song, operations management. Funding: This work was supported by the National Natural Science Foundation of China [Grants 71922009, 72188101, 71871080, and 72071057]. Supplemental Material: The data files and online appendices are available at https://doi.org/10.1287/mnsc.2023.4733 .

Publisher

Institute for Operations Research and the Management Sciences (INFORMS)

Subject

Management Science and Operations Research,Strategy and Management

Cited by 3 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3