Exploring the financial consequences of the servitization of manufacturing

Commentators suggest that to survive in developed economies manufacturing firms have to move up the value chain, innovating and creating ever more sophisticated products and services, so they do not have to compete on the basis of cost. While this strategy is proving increasingly popular with policy makers and academics there is limited empirical evidence to explore the extent to which it is being adopted in practice. And if so, what the impact of this servitization of manufacturing might be. This paper seeks to fill a gap in the literature by presenting empirical evidence on the range and extent of servitization. Data are drawn from the OSIRIS database on 10,028 firms incorporated in 25 different countries. The paper presents an analysis of these data which suggests that: [i] manufacturing firms in developed economies are adopting a range of servitization strategies-12 separate approaches to servitization are identified; [ii] these 12 categories can be used to extend the traditional three options for servitization-product oriented Product-Service Systems, use oriented Product-Service Systems and result oriented Product-Service Systems, by adding two new categories "integration oriented Product-Service Systems" and "service oriented Product-Service Systems"; [iii] while the manufacturing firms that have servitized are larger than traditional manufacturing firms in terms of sales revenues, at the aggregate level they also generate lower profits as a % of sales; [iv] these findings are moderated by firm size (measured in terms of numbers of employees). In smaller firms servitization appears to pay off while in larger firms it proves more problematic; and [v] there are some hidden risks associated with servitization-the sample contains a greater proportion of bankrupt servitized firms than would be expected. © Springer Science + Business Media, LLC 2009.

Buyer-supplier partnerships during product design and development in the global automotive sector: Who invests, in what and when?

This paper explores the concept of partnerships between buyers and suppliers in the global automotive sector during product design and development. Partnerships are often the goal in a shift away from adversarial arms-length relationships. The objective of this research is to provide empirical evidence to explain the levels of mutual investment expected and achieved in partnerships from both buyer and supplier perspectives. During this research, 25 employees from 12 global supplier organisations who were in partnership with a specific vehicle manufacturer (VM) were interviewed. Twelve employees from this VM were also interviewed. The research showed the differences between partnerships and non-partnerships and the disparities in the expectations of investment from each partner. For suppliers and buyers to get the most out of partnerships, clear expectations and investments needed over time should be understood and agreed early in the relationship. © 2009 Elsevier B.V.All rights reserved.

Building more sustainable solutions in production-consumption systems: the case of food for people with reduced access

In new product development, the ability to integrate different dimensions of sustainability at a value chain level is still a complex, problematic goal. As product-service approaches are increasingly enabling the introduction of more sustainable paths, this paper describes the authors' experience thus far when building insights into conditions for the implementation of integrated solutions in a process of co-development and testing in real life conditions, which are driven by a social need focusing on food for people with reduced access. Throughout this process, which brought together producers, consumers and other stakeholders to design and test industrialised, sustainable solutions, empirical evidence demonstrates feasibility and usefulness of the approach and insight into the conditions for implementing interactive, comprehensive multi-stakeholder processes in real life situations. In addition, results show that the delivery of innovative solutions enabled to offer social added value, economic profits and environmental improvements under specific experimental conditions. © 2006 Elsevier Ltd. All rights reserved.

Encoding of marginal utility across time in the human brain.

Marginal utility theory prescribes the relationship between the objective property of the magnitude of rewards and their subjective value. Despite its pervasive influence, however, there is remarkably little direct empirical evidence for such a theory of value, let alone of its neurobiological basis. We show that human preferences in an intertemporal choice task are best described by a model that integrates marginally diminishing utility with temporal discounting. Using functional magnetic resonance imaging, we show that activity in the dorsal striatum encodes both the marginal utility of rewards, over and above that which can be described by their magnitude alone, and the discounting associated with increasing time. In addition, our data show that dorsal striatum may be involved in integrating subjective valuation systems inherent to time and magnitude, thereby providing an overall metric of value used to guide choice behavior. Furthermore, during choice, we show that anterior cingulate activity correlates with the degree of difficulty associated with dissonance between value and time. Our data support an integrative architecture for decision making, revealing the neural representation of distinct subcomponents of value that may contribute to impulsivity and decisiveness.

Sustainability: A new imperative in contaminated land remediation

Land is not only a critical component of the earth's life support system, but also a precious resource and an important factor of production in economic systems. However, historical industrial operations have resulted in large areas of contaminated land that are only slowly being remediated. In recent years, sustainability has drawn increasing attention in the environmental remediation field. In Europe, there has been a movement towards sustainable land management; and in the US, there is an urge for green remediation. Based on a questionnaire survey and a review of existing theories and empirical evidence, this paper suggests the expanding emphasis on sustainable remediation is driven by three general factors: (1) increased recognition of secondary environmental impacts (e.g., life-cycle greenhouse gas emissions, air pollution, energy consumption, and waste production) from remediation operations, (2) stakeholders' demand for economically sustainable brownfield remediation and "green" practices, and (3) institutional pressures (e.g., social norm and public policy) that promote sustainable practices (e.g., renewable energy, green building, and waste recycling). This paper further argues that the rise of the "sustainable remediation" concept represents a critical intervention point from where the remediation field will be reshaped and new norms and standards will be established for practitioners to follow in future years. This paper presents a holistic view of sustainability considerations in remediation, and an integrated framework for sustainability assessment and decision making. The paper concludes that "sustainability" is becoming a new imperative in the environmental remediation field, with important implications for regulators, liability owners, consultants, contractors, and technology vendors. © 2014 Elsevier Ltd.

Deterministic cold cathode electron emission from carbon nanofibre arrays.

The ability to accurately design carbon nanofibre (CN) field emitters with predictable electron emission characteristics will enable their use as electron sources in various applications such as microwave amplifiers, electron microscopy, parallel beam electron lithography and advanced Xray sources. Here, highly uniform CN arrays of controlled diameter, pitch and length were fabricated using plasma enhanced chemical vapour deposition and their individual emission characteristics and field enhancement factors were probed using scanning anode field emission mapping. For a pitch of 10 µm and a CN length of 5 µm, the directly measured enhancement factors of individual CNs was 242, which was in excellent agreement with conventional geometry estimates (240). We show here direct empirical evidence that in regular arrays of vertically aligned CNs the overall enhancement factor is reduced when the pitch between emitters is less than half the emitter height, in accordance to our electrostatic simulations. Individual emitters showed narrow Gaussian-like field enhancement distributions, in excellent agreement with electric field simulations.