Model for Servitization Strategy in Malaysian Manufacturing Industry

N. Nordin; A. Hasbullah; H.M. Belal

doi:10.58915/aset.v4i2.2697

Authors

N. Nordin Universiti Utara Malaysia
A. Hasbullah Universiti Utara Malaysia
H.M. Belal Liverpool John Moores University

DOI:

https://doi.org/10.58915/aset.v4i2.2697

Keywords:

Manufacturing industry, Process model, Service quality, Service strategy, Servitization

Abstract

Developed countries have shifted their business focus to serving customers rather than merely creating products. Service has become a strategic means for organizations to gain competitiveness and sustainability. “Servitization” is a strategy where companies use service as their core offering and deliver advanced services. This strategy remains relatively new and under-recognized in developing countries such as Malaysia, where companies may offer services without recognizing them as part of a servitization strategy. This study aims to investigate the key factors essential for the servitization strategy and to develop a model for the servitization process in the Malaysian manufacturing industry. Three companies were selected using a case study method to examine and understand company operations. Six key factors of servitization were identified: vision, organizational structure, people management, strategic direction, value chain, and customer. A model describing the transition process was developed based on these factors, with one company chosen for model verification. This study aims to contribute to the service research field and increase awareness of service strategy, ultimately improving service quality within Malaysian businesses and organizations.

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