Servitization patterns in the machine building: impact of financial performance and size on service delivery strategies

Dvoyanov S.V.¹, Kelchevskaya N.R.²
¹ Среднеуральский медеплавильный завод
² Уральский федеральный университет им. первого Президента России Б.Н. Ельцина, Russia

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Journal paper

Journal of Economics, Entrepreneurship and Law ^{(РИНЦ, ВАК)}
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Volume 13, Number 7 (July 2023)

Citation:

Indexed in Russian Science Citation Index: https://elibrary.ru/item.asp?id=54310333

Abstract:
Servitization is an important strategy for expanding the revenue stream of machine builders through the provision of basic, intermediate and advanced consulting, support and repair services that accompany technically complex products. The purpose of this article is to study servitization patterns and regularities in approaches to the provision of services in mechanical engineering, which characterize companies in accordance with their size and financial performance. For the study, reporting data of 98 Russian companies were used, which account for a third of the national machine-building market in terms of revenue in 2021. With the help of cluster analysis and comparison of differences in the average values of servitization indicators based on the Mann-Whitney criterion, differences in the nature and depth of services provided by manufacturing enterprises were determined. The results of the study showed that the paradox of servitization is confirmed in practice. With an increase in the volume of investments in the infrastructure and processes for the provision of services, the overall profitability of the company first grows and then decreases after reaching a certain level. The results can be applied in the practice of companies to determine the depth of services provided and develop service strategies that increase customer loyalty and expand the revenue streams generated by the business model.

Keywords: servitization, industrial services, repairs, mechanical engineering, financial performance, cluster analysis, comparison of means

JEL-classification: L51, L52, O25, M11, M21

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