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PurposeThis article seeks to answer the following research question: How does the focus of attention and situated attention contribute to the formulation and implementation of the service orientation in the business strategy?Design/methodology/approachStructural equation modelling is used as a research methodology.FindingsThe paper suggests that the formation and implementation of service orientation in the business strategy is influenced strongly by managerial attention.Research limitations/implicationsThe results suggest that a survey is suitable for investigating managerial cognition and attention, but future research should benefit from obtaining data on managerial attention through interviews or secondary data such as company documents.Practical implicationsThe main effect on strategy implementation and the moderating role of situated attention suggest that managers should be aware of the potential inertia by implementing a service‐oriented business strategy. The main effects for strategy formulation suggest that the formulation of a service‐oriented business strategy is triggered through decreasing product margins in the case of product‐oriented companies, whereas it is triggered by increasing customer expectations for service‐oriented companies.Originality/valueThe study examines the moderating effects of focus of managerial attention and situated management attention on the service orientation of business strategy.

PurposeThis paper attempts to provide a better understanding of behavioral processes and their impact on the transition from products to services.Design/methodology/approachCase studies are the main tool of theory development. The paper focuses mainly on German and Swiss product manufacturers, whose products require a high level of customer investment.FindingsThe objective was merely to explain behavioral dimension of transition. The paper indicated seven behavioral processes which play a critical role during the transition. Managerial service awareness and role understanding, as well as employee service awareness and role understanding seem to be the right triggers to change the behavioral processes in the desired manner.Research limitations/implicationsThe main focus was on the German and Swiss machinery and medical equipment manufacturing industries, and the remarks are limited to these sectors.Practical implicationsThe key managerial implications and recommendations can be formulated as follows: establish a "value‐added" managerial service awareness; change managerial role understanding – from traditional customer support to business manager; establish a "value‐added" employee service awareness; and change employee role understanding – from selling products to providing services.Originality/valueThe authors were able to add a complementary perspective to existing literature on the transition process from products to services. For service management theorists, it is suggested that the transition from product manufacturers into service providers is influenced strongly by several behavioral processes. A complete theory of the transition process requires an interdisciplinary theory that integrates service management and human decision making.

PurposeThe purpose of this paper is to extend knowledge of differences between Western European and Chinese service organizations in typical manufacturing companies.Design/methodology/approachThe paper combines qualitative and quantitative research approaches. The qualitative study involved 23 minicases with Swiss manufacturing companies which operate a service organization in Western Europe and China. The results of the minicases were validated externally by using factor and discriminant analysis.FindingsThe results suggest that the service orientation of corporate culture, human resource management and the entire organization is significantly lower in Chinese service organizations than in their Western European counterparts, leading to significantly lower financial service‐related performance outcomes.Research limitations/implicationsFor service management theorists, the findings suggest that increasing financial service‐related performance outcomes in China is affected to a high degree by Chinese cultural characteristics.Practical implicationsFor managers, the findings suggest that implicit logic for increasing financial service‐related performance outcomes starts with overcoming typical and, in some respects, limiting cultural characteristics.Originality/valueUnfortunately, the existing literature provides surprisingly little in the way of suggestions as to the actual differences between Western European and Chinese service organizations. This research closes this gap by validating factors that differentiate Western European from Chinese service organizations.

PurposeThe paper aims to provide a better understanding of the interrelatedness of customer and service orientations in the organizational structures of capital goods manufacturing companies.Design/methodology/approachA qualitative, multi‐case research design was employed using 36 European capital goods manufacturing companies.FindingsThis article explored four different patterns of how companies move from being product‐focused to service‐focused, and from having an organizational structure that is geographically focused to one that is customer‐focused. The four patterns are termed as follows: emphasizing service orientation, service‐focused organizational structure, emphasizing customer orientation, and customer‐focused organizational structure.Research limitations/implicationsAlthough the study is based on 36 case studies, the external validity (generalizability) of the findings could not be assessed accurately.Practical implicationsThe description of the four organizational approaches offers guidance for managers to restructure their companies towards service and customer orientations.Originality/valueThe article links the relatively independent discussions of service and customer orientations in the context of organizational structures. The four patterns provide a better understanding of how capital goods manufacturers integrate increased customer and service focuses in their organizational structures.

PurposeThe article aims to investigate how product manufacturing firms can configure their global service approach.Design/methodology/approachA qualitative, multi‐case research design was employed.FindingsThe following four global service approaches could be identified: integrated and ethnocentric; integrated and polycentric; separated and polycentric; and separated and geocentric.Research limitations/implicationsThe research findings are limited in generalizability because of the qualitative research approach.Practical implicationsExploring global forms of and supply chain configurations for services supports the efforts of manufacturing firms in developing new service‐based and relationship‐based value propositions.Originality/valueThe study contributes to the debate on integrating versus separating the service organization. It offers a complementary explanation on integrating and separating the service business, through a differentiation into central and local (market) organizations.

A new trend seems to be emerging for multinational manufacturing companies to make a strategic reorientation into becoming service providers. For some companies, such as Kone and IBM, the revenues from services are 50% or more of their total sales. Despite the increasing interest in exploring various aspects of the service part of the business in manufacturing companies, existing research has not focused on the interdependencies between different service strategies and organizational designs. This article studies different service strategies in manufacturing companies and highlights the organizational design necessary for implementing each service strategy. The service strategies explored are aftersales service providers, customer support service providers, outsourcing partners, and development partners. Each service strategy is supported by organizational design factors related to the service orientation of corporate culture, the service orientation of human resource management, and the service orientation of organizational structures. This research concludes that a specific strategy-structure configuration is needed in order to succeed with a chosen service strategy.

PurposeThe purpose of this paper is to investigate the intentional formation of business networks in the wastewater industry. It enriches the theory‐building of the formation of business networks by drawing on theoretical contributions to business networks and capabilities. The paper describes, assesses and predicts scenarios relevant to the formation of business networks in the wastewater industry.Design/methodology/approachThe research methodology employed is based on multiple sources of data in a multi‐method design, interpreting potential scenarios of business networks.FindingsThe findings reveal that water scarcity, population growth and economic constrains jeopardize existing business networks in the wastewater industry. Two potential scenarios: re‐inventing the centralized system through on‐site systems for mass‐markets; and expanding on‐site systems into mass‐markets seem realizable. A comparison of the two scenarios suggests that the first scenario is in a superior position to utilize the business opportunities offered.Research limitations/implicationsResearch limitations arise from the qualitative nature of the research undertaken.Practical implicationsCapability alignments and barriers suggest that the re‐inventing the centralized system through on‐site systems for mass‐markets scenario, is the most suitable for implementation. The knowledge gained allows managers to outline a specific approach for developing the capabilities required, in order to take advantage of the alignments and overcome the barriers that may exist.Originality/valueThe paper highlights that building theories of business networks may benefit from combining the formation of business networks with dynamic and operational capabilities.

PurposeInformation and communication technology (ICT) is a key enabler for new product‐ and process‐oriented services. The purpose of this paper is to investigate how ICT can enable service differentiation and, in doing so, act as a catalyst for a service business orientation.Design/methodology/approachThe paper is based on a qualitative, multi‐case research design with eight multinational goods manufacturers.FindingsThe paper identifies two distinct types of service‐oriented differentiation: services in support of the product (SSP) and services in support of the client's actions (SSC). The study finds that SSC have the largest positive impact on firms' service business orientation.Research limitations/implicationsWestern firms in a limited sample of industries are studied. Furthermore, the service business orientation construct does not include any measurements of service profitability or impact on overall competitive advantage.Practical implicationsTo various extents, successful firms are likely to pursue both SSP and SSC differentiation traits through ICT. The two options are interdependent and the framework presented helps managers to understand both key specificities and their interrelatedness.Originality/valueThe study contributes to theory on service strategies by specifically focusing on the enabling role of ICT for new services and its effects on each of the three dimensions of the service business orientation construct.

PurposeThis study seeks to examine how Chinese culture affects business‐to‐business marketing strategies and service revenue in manufacturing companies.Design/methodology/approachThe paper used a combination of qualitative research approaches, namely interviews, longitudinal study and bi‐polar case studies. The sequence of the qualitative research approaches was chosen to maximize internal and external validity.FindingsThe findings expose the impact of the characteristics of Chinese culture on a firm's potential to generate high service revenues in business marketing.Research limitations/implicationsThe study has possible location‐ and industry‐specific limitations.Originality/valueThe implicit logic for increasing service revenue starts with overcoming typical and, in some respects, limiting cultural characteristics. These characteristics limit business‐to‐business marketing for increasing service revenue. Monitoring the effects of Chinese culture and gaining an understanding of how they have to be managed provides some guidance for managers to generate high service revenues.