Exploring value creation of manufacturing service innovation based on a perspective of asset specificity: Cases from IT industry

Along with global competition, Taiwan's manufacturing sector faces a severe environment due to the leading high-tech of advanced countries, and low-cost production advantages of emerging countries. Manufacturing transformation through servitization becomes an important issue. However, the past servitization studies mostly focused on industrial restructuring, business strategy and model, and service development connotation. They rarely discussed value-creation strategy of manufacturing service innovation. Therefore, this study further bases on a perspective of asset specificity to explore the strategy of manufacturing service innovation. That is to explore how to enhance the degree of customer adhesion by servitization, and hence create value of service innovation. The study adopted a qualitative research method. The analytical framework is based on a two-dimensional strategy matrix, consisting servitization depth and servitization breadth. Four cases are selected from the top 100 manufacturing firms in Taiwan. Through secondary data and in-depth interviews with experts, the study collected representative service innovation events of the cases from 2004 to 2013. According to the final analysis results and in-depth interviews with experts, the value-creation strategies of the asset specificity, developed by manufacturing service innovation, are explored. In summary, for the value creation of asset specificity by manufacturing service innovations, the study suggests the following two strategies. First, a vertically integrated supply chain services: e-Through build an open platform, a series of value-added supply chain resources services, while providing one-stop shopping total solution of hardware and software services program, create customer convenience, immediate value and flexibility. Second, the value chain integration services diversification: diversification extends the value chain to form integration services, and create customer value across multi-service value chain. The results presented in this article and in accordance with management implications.