Servitization, digitization and supply chain interdependency
Metadata
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Vendrell-Herrero, Ferrán; Bustinza Sánchez, Óscar Fernando; Parry, Glenn; Georgantzís, NikolaosEditorial
Elsevier
Materia
Servitization Digitization Interdependences Publishing industry Payment card
Date
2017-01Referencia bibliográfica
Vendrell-Herrero, F., Bustinza, O. F., Parry, G., & Georgantzis, N. (2017). Servitization, digitization and supply chain interdependency. Industrial Marketing Management, 60, 69-81. [http://dx.doi.org/10.1016/j.indmarman.2016.06.013]
Sponsorship
European Commission under the Horizon Marie Skiodowska-Curie Actions project "MAKERS: Smart Manufacturing for EU Growth and Prosperity" 691192; Spanish Government ECO2014-58472-R; Junta de Andalusia P11-SEJ-7294Abstract
This study draws on literature at the intersection of servitization, digital business models and supply chain management. Work empirically explores how digital disruption has affected Business-to-Business (B2B) interdependencies. Dematerialization of physical products is transforming the way firms are positioned in the supply chain
due to a reduction in production and transport costs and the different ways business engage with customers. Specifically, we propose that these new market conditions can empower downstream firms. We further propose that
upstream firms can still capture additional value through digital service if their servitized offer includes difficult
to imitate elements. The context of the analysis is the publishing industry. The Payment Card method employed is
used to test UK and US consumer's perceptions of digital formats (eBooks) and assess their willingness to pay in
relation to printed formats. The method undertaken enables us to elicit aggregated consumer demand for eBooks
which in turn identifies optimal pricing strategies for the digital services. Analysis demonstrates that during digital servitization upstream firms should seek to deploy unique resources to ensure their strategic position in the
supply chain is not diminished.