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The mediating-moderating role of network capability in service strategy: sales performance link
University of Vaasa.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.ORCID iD: 0000-0003-3255-414X
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Innovation and Design.ORCID iD: 0000-0002-8770-8874
Aalto University School of Economics (CKIR).
2012 (English)Conference paper, Oral presentation only (Refereed)
Abstract [en]

Corresponding to calls for studies to test important links between industrial service offerings and company sales performance, this study tests the role of two mediating constructs, service performance and network capability for traditional manufacturing companies that have started to add services to their product offerings. Moreover, this study tests the moderating role of network capability on the service offering – service performance as well as service offering – company sales performance links to highlight the interaction between implementation of industrial service strategy and service structure. We reasoned that these moderators would be important especially in times of economic downturn, whereby we collected data of how traditional manufacturing companies succeeded with implementation of extensive service strategies during the significant economic downturn the last couple of years. Through application of structural modeling and generalizable data of 115 Finnish product manufacturing companies, the findings confirm the hypothesized mediating role of service performance in the service strategy – company sales performance relationship for product manufacturers migrating from product manufacturing towards service business, and implementing service strategy suggesting that services can actually provide counter-cyclical, resistant and more stable source of revenues than products. In addition, the results confirm that implementation of service strategy facilitates the development of important network capabilities, which then further increase company sales performance. Most importantly, the results highlight the interaction between service strategy and network capability suggesting that network capability enables value creation from service offerings, as network capability moderates the service offering – service performance as well as service offering – company sales performance linkages. For manufacturing managers thinking of adding services to their operations, the results suggest that active development of service offerings in interaction with customers is important to effectively implement service strategy and to develop the necessary network capabilities needed to secure improvements in company sales performance for such a change of business operations.

Place, publisher, year, edition, pages
2012.
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
URN: urn:nbn:se:ltu:diva-38646Local ID: d178c2db-3673-400a-ba02-8ccdd192a6efOAI: oai:DiVA.org:ltu-38646DiVA, id: diva2:1012147
Conference
IMP Conference : 13/09/2012 - 15/09/2012
Projects
Fastelaboratoriet - VINNEXC
Note
Godkänd; 2012; 20120313 (vinpar)Available from: 2016-10-03 Created: 2016-10-03 Last updated: 2017-11-25Bibliographically approved

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Parida, VinitWincent, Joakim

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
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Language
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  • Other locale
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Output format
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  • asciidoc
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