The logic for increasing service revenue in product manufacturing companies
Journal
International Journal of Services and Operations Management
ISSN
1744-2370
ISSN-Digital
1744-2389
Type
journal article
Date Issued
2007-05-16
Author(s)
Gebauer, Heiko
Abstract
To respond to increasing challenges from competitors, manufacturing companies have developed a growing interest in extending their service business. They have started initiatives to generate revenue growth through services. However, creating service revenue is not easy. The majority of manufacturing companies still earn a relatively small share of their total revenue through services. If services were fundamentally ineffective in generating revenue, it would be easy to explain why companies struggle to succeed in deriving a high percentage of overall revenue from services. It would not explain, however, why some companies have, in the past, achieved a high share of service revenue. Based on five focus groups and ten in-depth bi-polar case studies, we attempt to provide a better understanding of how manufacturing companies can increase their service revenue. We illustrate the implicit logic of increasing service revenue, the keys to success and fundamental dimensions for implementing them.
Language
English
Keywords
service revenue
managerial motivation
service strategy
organisational arrangements
service management
manufacturing companies.
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Inderscience
Publisher place
Olney
Volume
3
Number
4
Start page
394
End page
410
Pages
17
Subject(s)
Division(s)
Eprints ID
37243