Adopting service suppliers for servitisation: which type of supplier involvement is more effective?

The purpose of this study is to analyse the effect of different forms of service supplier involvement on the service business dimensions necessary for servitisation and on the resulting servitisation performance.

Three different configurations of service supplier involvement are considered in this study: black box (service design and execution driven by the service supplier), grey box (joint service design) and white box (service design driven by the product firm). The study analyses their contribution by means of a cross-sectional quantitative survey with 104 Brazilian and Italian firms using multivariate analysis of variance.

Companies that adopted the grey box configuration presented the best results in servitisation. White and black box may offer different benefits depending on the service business dimension that the company chooses to emphasise.

The results show which type of service supplier involvement is more effective for servitisation. The empirical data demonstrate that a joint service design (grey box involvement) is the best approach, but the paper discusses limitations for its implementation and alternatives regarding the two other types of service supplier involvement. The findings contribute to the discussion on the role of service suppliers in servitisation and provide empirical evidence to support operations managers in deciding on how to organise their service supply chain when aiming for servitisation.