Table 2 Measurement framework for the...

Table 2

Measurement framework for the level of servitization

Conceptual dimension	Formula/example
Construct; indicator and indicator type
Non-financial indicators of servitization level (NFSL)
Service portfolio (SP)
Mixed
Service offerings
Coverage of the service portfolio (“scope”)	Number of service types offered in a generic or context-specific set of known services
Importance of the service offerings (“scale”)	Volume of business for each service type in a generic or context-specific set of known services
Service complexity
Sophistication (“depth”)	Level of sophistication or difficulty of requirements for each service provided, e.g. Basic/intermediate/advanced service offering (Baines and Lightfoot, 2014) Customer service; product services and service as a product (Mathieu, 2001b)
Customization (“variability”)	The extent of customization, technical configuration and tailoring to satisfy customer needs for each service provided
Managerial service orientation (MSO)
Multi-item or single-item Likert scale
Service-oriented management culture
Management awareness of service value	“Services represent significant business opportunities for our company” “In our business domain, the potential value capture from services remains marginal” (reverse)
Management awareness of service role in company's business	“Services form the core of the value proposition of our company” “The role services in our business are mainly tactical” (reverse) “We must provide services to sell our products because our competitors do so” (reverse)
Management commitment to service strategies	“Services have a fundamental role in our business strategy” “Service development is critical for the future competitiveness of our business”
Service-oriented management practice
Service-oriented human resource management	“Our company actively develops the service skills of our employees”
Service-oriented physical resource management	“Our company enables high performance by providing sufficient resources for the service activities”
Organizational service capabilities (OSC)
Multi-item or single-item Likert scale
Relational service capabilities
Customer orientation	“Our services are designed to solve the targeted problem of our customer” “The starting point for value creation is meeting customer needs with the services we provide”
Service co-creation	“Customers are strongly involved in our value creating service activities” “We collaborate closely with our customers to reach better service outcomes”
Service contracting	“Our interactions aim at building long-lasting contract relationships with customers” “Our interactions with customers are focused on transactions” (reverse)
Service development capabilities
Product and service integration	“Physical products and services are developed side by side” “Our services, goods and components are designed to be seamlessly integrated”
Service technologies	“Our services make extensive use of advanced technologies”
Service development process	“We understand the required steps and have the right knowledge to systematically develop the services we offer” “Cross-functional expertise is engaged in every step of the service development process to ensure long-term success for the outcome”
Employee service capabilities
Front-office	“Our front-office employees have the required skills and expertise to deliver our services”
Back-office	“Our back-office employees have the required skills and expertise to deliver our services” “Our back-office employees have the required skills and expertise to support our front-office operations”
Organizational structure (OS)
Multi-item or single-item Likert scale
Organizational design factors
Dedicated business unit	“Our organization has dedicated business unit(s) for its service provision”
Decentralization of decision-making	“Our organization supports decision-making close to customer interface to ensure efficient service delivery” “The decision-making processes that concern our service activities are centralized and controlled by top management” (reverse)
Financial servitization level measures (FSL)
Service turnover (ST)
Business figure
Service revenue
Share of revenue from service	Revenue from service (0–100%)

Conceptual dimension	Formula/example
Construct; indicator and indicator type
Non-financial indicators of servitization level (NFSL)
Service portfolio (SP)
Mixed
Service offerings
Coverage of the service portfolio (“scope”)	Number of service types offered in a generic or context-specific set of known services
Importance of the service offerings (“scale”)	Volume of business for each service type in a generic or context-specific set of known services
Service complexity
Sophistication (“depth”)	Level of sophistication or difficulty of requirements for each service provided, e.g.Basic/intermediate/advanced service offering (Baines and Lightfoot, 2014)Customer service; product services and service as a product (Mathieu, 2001b)
Customization (“variability”)	The extent of customization, technical configuration and tailoring to satisfy customer needs for each service provided
Managerial service orientation (MSO)
Multi-item or single-item Likert scale
Service-oriented management culture
Management awareness of service value	“Services represent significant business opportunities for our company”“In our business domain, the potential value capture from services remains marginal” (reverse)
Management awareness of service role in company's business	“Services form the core of the value proposition of our company”“The role services in our business are mainly tactical” (reverse)“We must provide services to sell our products because our competitors do so” (reverse)
Management commitment to service strategies	“Services have a fundamental role in our business strategy”“Service development is critical for the future competitiveness of our business”
Service-oriented management practice
Service-oriented human resource management	“Our company actively develops the service skills of our employees”
Service-oriented physical resource management	“Our company enables high performance by providing sufficient resources for the service activities”
Organizational service capabilities (OSC)
Multi-item or single-item Likert scale
Relational service capabilities
Customer orientation	“Our services are designed to solve the targeted problem of our customer”“The starting point for value creation is meeting customer needs with the services we provide”
Service co-creation	“Customers are strongly involved in our value creating service activities”“We collaborate closely with our customers to reach better service outcomes”
Service contracting	“Our interactions aim at building long-lasting contract relationships with customers”“Our interactions with customers are focused on transactions” (reverse)
Service development capabilities
Product and service integration	“Physical products and services are developed side by side”“Our services, goods and components are designed to be seamlessly integrated”
Service technologies	“Our services make extensive use of advanced technologies”
Service development process	“We understand the required steps and have the right knowledge to systematically develop the services we offer”“Cross-functional expertise is engaged in every step of the service development process to ensure long-term success for the outcome”
Employee service capabilities
Front-office	“Our front-office employees have the required skills and expertise to deliver our services”
Back-office	“Our back-office employees have the required skills and expertise to deliver our services”“Our back-office employees have the required skills and expertise to support our front-office operations”
Organizational structure (OS)
Multi-item or single-item Likert scale
Organizational design factors
Dedicated business unit	“Our organization has dedicated business unit(s) for its service provision”
Decentralization of decision-making	“Our organization supports decision-making close to customer interface to ensure efficient service delivery”“The decision-making processes that concern our service activities are centralized and controlled by top management” (reverse)
Financial servitization level measures (FSL)
Service turnover (ST)
Business figure
Service revenue
Share of revenue from service	Revenue from service (0–100%)

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