Understanding the influence of servitization on global value chains: A conceptual framework

Ismail Gölgeci, David Gligor, Ewelina Lacka, Jawwad Z. Raja

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose: This paper examines the servitization phenomenon in the context of global value chains (GVCs) and presents a conceptual framework by connecting the two literature streams—servitization and GVCs—to depict the interconnected multilevel processes by which the influence of servitization on GVC structure and governance is manifested.

Design/methodology/approach: Drawing on cross-disciplinary literature, we develop a multilevel conceptual framework. The theoretically informed framework advances research on servitization and GVCs, and provides a line of inquiry to be explored as avenues for future research opportunities.

Findings: We argue that servitization instigates the formation of new ecosystems and collaborative structures within GVCs, reduces the fragmentation of the overall network structure, and increases embeddedness within the sub-clusters of GVCs. These changes are expected to be reflected in the increase in the complexity of firms’ GVC governance tasks, a greater reliance on relational governance, and an increase in the dependency on local partners in terms of the governance of GVCs.

Originality/value: This conceptual paper establishes the link between servitization and GVCs, anchors the servitization phenomenon in GVCs, explains how servitizing firms can engage in and shape GVCs, and offers insights into the servitization-driven changes in GVCs. The conceptual framework is intended to lay the foundation for future empirical research on the link between servitization and GVCs.
Original languageEnglish
JournalInternational Journal of Operations and Production Management
Early online date11 May 2021
DOIs
Publication statusE-pub ahead of print - 11 May 2021

Keywords

  • servitization
  • Global Value Chains (GVCs)
  • structure
  • governance

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