Finding new ways of creating value: A case study of servitization in construction

William Robinson, Paul Chan, Thomas Lau

Research output: Contribution to journalArticleScientificpeer-review

11 Citations (Scopus)

Abstract

Using activity theory as a framework, this paper explores how organizational changes enabled a multinational construction company to transform its business model in pursuit of servitization. Following one firm’s journey toward servitization over a 33-month period, the study demonstrates how the mobilization of new resources across the supply chain, the development of new products, and the creation of new service offerings enabled the organization to create and capture value in new ways. Given the lack of research on systems integrators and servitization, the case offers some important insights. It suggests that systems integrators must carefully consider their position within their existing value chain as they shift toward servitized business models and then constantly coordinate internal and external activities as they move forward. For instance, Laing O’Rourke developed new offerings by exploiting data from across the supply chain and integrating design and manufacturing processes to create possibilities to capture value through long-term customer relationships. The use of activity theory as a frame for the analysis offers a new way of examining how these firms move toward servitization and what barriers they face.
Original languageEnglish
Pages (from-to)37-49
JournalResearch Technology Management: international journal of research management
Volume59
Issue number3
DOIs
Publication statusPublished - May 2016
Externally publishedYes

Keywords

  • Servitization
  • Systems Integrators
  • Activity Theory
  • Construction Industry

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