Organizing for Servitization: Examining Front- and Back-end Design Configurations

Purpose Research suggests that to structure for servitization, organizations should separate their front- and back-end units by reference to high versus low contact activities. However, these prescriptions are overly simplistic and largely based on anecdotal evidence that fails to account for context. This research addresses the need to explore the design decisions taken by organizations in support of servitization. Design/methodology/approach A large-scale exploratory case study was conducted, consisting of embedded cases in three divisions of a UK-based, global manufacturing firm. Findings Each division provided different combinations of offerings (i.e. product-, use- and result-oriented). The findings suggest that front-end / back-end configurations differ according to the offering and can exist concurrently within the same organization, challenging the assumption that different configurations within an organization are not possible. The findings show that underlying contextual factors, such as the com...