Analysis of a Product-service Association’s Impact on the Organization; an SMI Case
International Journal of Business and Economics Research
Volume 8, Issue 6, December 2019, Pages: 414-421
Received: Sep. 9, 2019; Accepted: Nov. 5, 2019; Published: Nov. 26, 2019
Views 137      Downloads 58
Riad Makdissi, Faculty of Economics and Business Administration, Lebanese University, Tripoli, Lebanon
Anita Nehme, Business Management and Administration Department, University of Balamand, Koura, Lebanon
Mary Mansour, Faculty of Economics and Business Administration, Lebanese University, Tripoli, Lebanon
Article Tools
Follow on us
Servitization is observed in companies that tend to develop their capabilities, skills and customer relationships to provide services that complement their manufactured products. Services are no longer a distinct category that managers must consider, but rather an omnipresent part of their strategic mission and business planning. The role of corporate culture in the implementation of service strategies is a recurring problem in the Servitization literature, as the assumption is that corporate culture can have a profound impact on the organization’s effectiveness. As a result, manufacturing companies pursuing a Servitization strategy must align their corporate culture, moving from a product-oriented to a service-oriented one. The PSS (Product-Service System), a special case of Servitization, refers to a combination of products and services. This concept includes a competitive strategy focused on service and environmental sustainability in order to differentiate itself from its competitors. This transformational process affects the organizational culture’s area. Based on an action research, we analyzed the impact of the Product-Service Association in a French manufacturing SME "Y" that has successfully developed product-related services. The methodology is based both on the interviews and on the analysis of secondary data. Our case study around the industrial company "Y" has thus made us able to justify the theories affirming that the PSS has an impact on an SMI’s organization and culture. We have noticed that the company "Y" has a product-service oriented culture which is reflected in its speeches and brochures and its internal organization. This culture is customer-oriented and its needs are at the heart of the staff's concerns, as the company always strives to satisfy them and respond to their inquiries. By maintaining a strong collaboration between its members and its customers, "Y" manages to ensure a customer-oriented culture. This way, "Y" is well organized and seeks to balance its products and services in order to satisfy its customers, through its "Culture Services based on Product expertise".
Servitization, Product-Service System (PSS), Corporate Culture, SMI
To cite this article
Riad Makdissi, Anita Nehme, Mary Mansour, Analysis of a Product-service Association’s Impact on the Organization; an SMI Case, International Journal of Business and Economics Research. Vol. 8, No. 6, 2019, pp. 414-421. doi: 10.11648/j.ijber.20190806.22
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Aurich J. C., Wolf N., Siener M. and Schweitzer E., “Configuration of product-service systems”, Institute for Manufacturing Technology and Production Systems, Vol. 20, n° 5, pp. 591-605, 2009.
Baglin G. and Malleret V., “Le développement d’offres de services dans les SMI”, Groupe HEC, 2004.
Baines T. and Lightfoot H., Made to serve, Wiley, United Kingdom, pp. 65-68, 2013.
Baines T. S and al., “State-of-the-art in product-service systems”, Innovative Manufacturing Research Gate, Vol. 221 pp. 1543-1552, 2007.
Baines T. S., Lightfoot H. W., Benedettini O. and Kay J. M., “The servitization of manufacturing A review of literature and reflection on future challenges”, Journal of Manufacturing Technology Management, Vol. 20, n° 5, pp. 554-555, 2009.
Böhm E., Eggert A., Thiesbrummel C., “Service transition: A viable option for manufacturing companies with deteriorating financial performance”, Industrial Marketing Management, Vol. 60, pp. 101-111, 2017.
Dubruc N., Peillon S., Farah A., “The impact of servitization on corporate culture”, Elsevier, Procedia CIRP, Vol. 16, pp. 289-294, 2014.
Dubruc N., Peillon S., Mansour M., “Service and customer orientation of corporate culture in a French manufacturing SME”, Procedia CIRP, Vol. 73, pp. 91-95, 2018.
Francfort I., Osty F., Sainsaulieu R., Uhalde M., “ Les mondes sociaux de l'entreprise” Revue française de sociologie Vol. 38-1 pp. 163-166, 1997.
Gao J., Yao Y., Zhu V., Sun L and Lin L., “Service-oriented manufacturing: a new product pattern and manufacturing paradigm”, J Intell Manuf, Vol. 22., 2011.
Gebauer, H., B. Edvardsson, and M. Bjurko, “The impact of service orientation in corporate culture on business performance in manufacturing companies”, Journal of Service Management, Vol. 21, n°2, pp. 239, 2010.
Gebauer, H., T. Friedli, and E. Fleisch, “Success factors for achieving high service revenues in manufacturing companies”, Benchmarking: An International Journal, Vol. 13 No. 3, pp. 374-386, 2006.
Kowalkowski C., Gebauer H., Kamp B., Parry G. “Servitization and deservitization. Overview, concepts, and definitions” Industrial Marketing Management, Vol. 60 pp. 4-10, 2017.
Kryvinska N., Kaczor S., Strauss C. and Gregus M., “Servitization: transition from manufacturer to service provider”, Research gate, pp. 3-5, 2015.
Li, Huashan & Tian, Guyang & Tian, Yezhuang “Servitization: Its preferred organization and impact on firm performance” Human Systems Management. 37. 181-193. 10.3233/HSM-18302, 2018.
Lienert A., “Change of culture or culture of change? Introducing a path-agency-culture (PAC) Framework to servitization research”, Procedia CIRP, Vol. 30, pp. 353-358, 2015.
Oliva R. and Kallenberg R, “Managing the transition from products to services”, International Journal of service, Industry Management, Vol. 14, n° 2, pp. 160-170, 2003.
Paolo G. and al., “A classification model for Product-Service Offerings”, Journal of Cleaner Production, Vol. 66, pp. 507-519, 2014.
Philippe J. and Léo P-Y., “Les couples Produit-Service, voie de développement pour les SME exportatrices ?”, Université d'Aix-Marseille III, 1996.
Pinet J. and Coupet A., “Créer une culture de service une question de leadership” Gestion · Vol. 33 n° 4, pp. 47-58, 2009.
Ren G. and Gregory M., “Servitizatin in Manufacturing Companies” Paper Presented at 16th Frontiers in Service Conference, San Francisco, 2007.
Thévenet M. “La culture d'entreprise”, PUF, 2015.
Tukker A., “Eight types of product-service system: eight ways to sustainability? Experiences from suspronet”. Business Strategy and the Environment, Vol. 13, n° 4, pp. 246-260, 2004.
Vandermerwe S. and Rada J., “Servitization of business: Adding value by adding services”, European Management Journal, Vol. 6, n° 4, Winter, pp. 314-324, 1988.
Ziaee Bigdeli A., Baines T., Bustinza O. and Guang Shi V. «Organisational change towards servitization: a theoretical framework”, Competitiveness Review, Vol. 27 No. 1, pp. 12-39, 2017.
Science Publishing Group
1 Rockefeller Plaza,
10th and 11th Floors,
New York, NY 10020
Tel: (001)347-983-5186