Servitization and competitive advantage:the importance of organizational structure and value chain position

Servitization represents a business-model change and organizational transformation from selling goods to selling an integrated combination of goods and services. Competitive advantage is one outcome of this shift. During servitization, companies follow stages to realize services as an opportunity to differentiate from goods and achieve higher customer satisfaction. This study analyzes this transition from base, intermediate, and advanced services by presenting results from 102 senior executives in multinational companies. Our results suggest increasing interest in service-led strategies in manufacturing companies. The results also show that increasing differentiation and high customer satisfaction are fundamental to achieving competitive advantage and superior performance with services. The analysis also indicates the importance of a company’s position in the value chain and the organizational structure it selects to support services in successful servitization.

Migrant entrepreneurs as cosmopolitan change agents:a Bourdieuan perspective on capital accumulation

Purpose : The aim of this paper is to provide novel insights into how the cosmopolitan mind-set can be fostered at a time of globalization by considering a group of social actors that has received scant attention in the literature on institutional change, notably migrant entrepreneurs. Design/methodology/approach : This is a conceptual study that draws on Bourdieu’s theory of capital to develop a set of testable propositions as to how the economic, cultural, social and symbolic capital endowments of migrant entrepreneurs shape their agency in bringing about cosmopolitan transformation. Findings : Together, migrant entrepreneurs endowed with higher levels of capital may act as institution reformers and promote the cosmopolitan mind-set by influencing the beliefs, incentives and behaviors of those embedded in more entrenched traditional institutions. Research limitations/implications : Our conceptual framework deals with only one of the many agents that may help bring about cosmopolitan change and is particularly well suited to a Western European context. Practical implications This conceptual paper provides a number of testable propositions that can be central to an empirical investigation into how the levels of capital possessed by migrant entrepreneurs affect their engagement in cosmopolitan change. Originality/value : The novelty of this paper lies in the development of a set of propositions that shows how divergent change toward a cosmopolitan vision might be engendered by spatially dispersed actors endowed with varying degrees of economic, cultural, social and symbolic capital.