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
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Authors
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
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Abstract
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".
Keywords
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
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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