Service breadth or depth? A customer perspective

Abstract

Purpose To enhance the value of servitization in customers’ problem-solving, this study aims to examine and compare the effects of manufacturers’ service breadth and depth strategies on their customer-based performance. It also explores how these effects are influenced by technological turbulence and a manufacturer’s supply chain position. Design/methodology/approach Based on data collected from 208 Chinese manufacturers, this study uses a three-stage least square approach to test the hypotheses focusing on the effects of manufacturers’ service strategies on customer-based performance and the moderating roles of technological turbulence and supply chain position. Findings The study reveals that manufacturers’ service depth has a significant positive effect on their customer-based performance. However, service breadth has an insignificant effect on the performance. Furthermore, technological turbulence positively moderates the effects of both service breadth and depth, and supply chain position only positively moderates the effect of service depth. Practical implications Manufacturers should focus on increasing service depth to improve their customer-based performance. Manufacturers in technically turbulent environments can attain ample benefits from both service breadth and depth, and those located downstream in a supply chain can benefit more from service depth. Originality/value By bringing a problem-solving perspective into the servitization literature, this study adds empirical insights to the impact of manufacturers’ service breadth and depth strategies on customer outcomes. The study also answers calls for insights into the environmental and structural contingencies of servitization.