Table 3 Measurement framework for the...

Table 3

Measurement framework for the performance impact of servitization

Conceptual dimensions	Formula/example
Construct; indicator and indicator type
Financial performance level measures (FP)
Financial performance (FP)
Company profitability
Mixed; business figure (objective) or Likert scale (subjective)
Profits	Profits
Profits growth	Profits growth in the last n years
Return on Sales	Operating profits/net sales
Business figure
Pre-tax per-capita profit	Profits/n. employees
Tobin's Q	Total market value of firm/total asset value of firm
Return on Investment	Current value of investment – Cost of investment/Cost of investment
Return on equity before taxes	Profits/net assets
Return on equity net income	Net profits/net assets
Return on Assets	Net income/total assets
Categorical
Bankruptcy	Yes/no
Service-based financial performance
Mixed; business figure (objective) or Likert scale (subjective)
Service sales growth	Service sales growth in the last n years
Stability of the cash flows over time	“Our cash flows are constant over time.”
Product-based financial performance
Mixed; business figure (objective) or Likert scale (subjective)
Product sales	1 – Share of revenue from service
Non-financial indicators of performance level (NFP)
Non-financial performance (NFP)
Manufacturing performance
Business figure (objective) or Likert scale (subjective)
Operational costs	“Our operational costs are lower than industry competitors.”
Operational efficiency	“Our operational efficiency is higher than industry competitors.”
Service-based nonfinancial performance
Multi-item or single-item Likert scale
Service quality	The quality of our services is high
Service innovation	Our service innovation activities are effective
Service value for customer's business	Our services add significant value to our customers' business
Fulfillment of customer expectations	Our services exceed our customers' expectations
Fulfillment of customer needs	Our services fulfill our customers' needs
Product-based nonfinancial performance
Multi-item or single-item Likert scale
Product quality	The quality of our products is high
Product innovation	Our product innovation activities are effective
Market performance
Business figure (objective) or Likert scale (subjective)
Market share/growth in reference industry	Our market share in our reference industry has increased over the last n years
Market share/growth in other industries	Our market share in other industries has increased over the last n years
Multi-item or single-item Likert scale
Competitive advantage	Our company is more competitive than its competitors
Customer relationships
Multi-item or single-item Likert scale
Customer satisfaction	Our customers are highly satisfied
Customer loyalty	Our customers are very loyal to our business

Conceptual dimensions	Formula/example
Construct; indicator and indicator type
Financial performance level measures (FP)
Financial performance (FP)
Company profitability
Mixed; business figure (objective) or Likert scale (subjective)
Profits	Profits
Profits growth	Profits growth in the last n years
Return on Sales	Operating profits/net sales
Business figure
Pre-tax per-capita profit	Profits/n. employees
Tobin's Q	Total market value of firm/total asset value of firm
Return on Investment	Current value of investment – Cost of investment/Cost of investment
Return on equity before taxes	Profits/net assets
Return on equity net income	Net profits/net assets
Return on Assets	Net income/total assets
Categorical
Bankruptcy	Yes/no
Service-based financial performance
Mixed; business figure (objective) or Likert scale (subjective)
Service sales growth	Service sales growth in the last n years
Stability of the cash flows over time	“Our cash flows are constant over time.”
Product-based financial performance
Mixed; business figure (objective) or Likert scale (subjective)
Product sales	1 – Share of revenue from service
Non-financial indicators of performance level (NFP)
Non-financial performance (NFP)
Manufacturing performance
Business figure (objective) or Likert scale (subjective)
Operational costs	“Our operational costs are lower than industry competitors.”
Operational efficiency	“Our operational efficiency is higher than industry competitors.”
Service-based nonfinancial performance
Multi-item or single-item Likert scale
Service quality	The quality of our services is high
Service innovation	Our service innovation activities are effective
Service value for customer's business	Our services add significant value to our customers' business
Fulfillment of customer expectations	Our services exceed our customers' expectations
Fulfillment of customer needs	Our services fulfill our customers' needs
Product-based nonfinancial performance
Multi-item or single-item Likert scale
Product quality	The quality of our products is high
Product innovation	Our product innovation activities are effective
Market performance
Business figure (objective) or Likert scale (subjective)
Market share/growth in reference industry	Our market share in our reference industry has increased over the last n years
Market share/growth in other industries	Our market share in other industries has increased over the last n years
Multi-item or single-item Likert scale
Competitive advantage	Our company is more competitive than its competitors
Customer relationships
Multi-item or single-item Likert scale
Customer satisfaction	Our customers are highly satisfied
Customer loyalty	Our customers are very loyal to our business

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