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Internalisation or externalisation? : Examining organisational arrangements for industrial services
Purpose – Manufacturing firms primarily organise service provision internally, externally or through a hybrid arrangement. This paper aims to analyse how firm-, offering-, and market-specific factors influence the way in which a firm organise its service provision. In addition, the paper analyses the specific challenges that each organisational arrangement presents for a firm. Design/Methodology/Approach – The study employed a qualitative, multiple-case research design that involved seven manufacturing firms with different organisational arrangements for service provision. Findings – Contrary to certain explicit assumptions, few firms organise for service provision solely through an in-house organisation. Analysis of firms in a wide variety of industries has shown that the organisational arrangements (internal, external or hybrid configuration) are contingent on factors such as market strategy, customer relationships, product-service linkages, internal competences and market channel characteristics. Research Limitations/Implications – This article is an initial attempt to understand the strategic choices that firms make in terms of inter-organisational arrangements for service provision. The research should be extended by way of a cross-sectional survey in order to test and further validate the importance of the determinants of the organisational arrangements for service provision. Originality/Value – This article contributes to the service marketing and management literature by examining factors that determine whether firms organise for service provision internally, externally or through a hybrid configuration. Prior research has not explicitly addressed this issue. Keywords – Industrial services, Organisational arrangement, Internalisation, Externalisation, Hybrid configuration, Service partner Paper type – Research paper ; Original Publication:Christian Kowalkowski, Daniel Kindström and Lars Witell, Internalisation or externalisation?: Examining organisational arrangements for industrial services, 2011, Managing Service Quality, (21), 4, 373-391.http://dx.doi.org/10.1108/09604521111146252Copyright: Emeraldhttp://www.emeraldinsight.com/
Internalisation or externalisation? : Examining organisational arrangements for industrial services
Purpose – Manufacturing firms primarily organise service provision internally, externally or through a hybrid arrangement. This paper aims to analyse how firm-, offering-, and market-specific factors influence the way in which a firm organise its service provision. In addition, the paper analyses the specific challenges that each organisational arrangement presents for a firm. Design/Methodology/Approach – The study employed a qualitative, multiple-case research design that involved seven manufacturing firms with different organisational arrangements for service provision. Findings – Contrary to certain explicit assumptions, few firms organise for service provision solely through an in-house organisation. Analysis of firms in a wide variety of industries has shown that the organisational arrangements (internal, external or hybrid configuration) are contingent on factors such as market strategy, customer relationships, product-service linkages, internal competences and market channel characteristics. Research Limitations/Implications – This article is an initial attempt to understand the strategic choices that firms make in terms of inter-organisational arrangements for service provision. The research should be extended by way of a cross-sectional survey in order to test and further validate the importance of the determinants of the organisational arrangements for service provision. Originality/Value – This article contributes to the service marketing and management literature by examining factors that determine whether firms organise for service provision internally, externally or through a hybrid configuration. Prior research has not explicitly addressed this issue. Keywords – Industrial services, Organisational arrangement, Internalisation, Externalisation, Hybrid configuration, Service partner Paper type – Research paper ; Original Publication:Christian Kowalkowski, Daniel Kindström and Lars Witell, Internalisation or externalisation?: Examining organisational arrangements for industrial services, 2011, Managing Service Quality, (21), 4, 373-391.http://dx.doi.org/10.1108/09604521111146252Copyright: Emeraldhttp://www.emeraldinsight.com/
Internalisation or externalisation? : Examining organisational arrangements for industrial services
Kowalkowski, Christian (author) / Kindström, Daniel (author) / Witell, Lars (author)
2011-01-01
ISI:000293987700004
Article (Journal)
Electronic Resource
English
DDC:
690
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