A framework for determinants of transition from a manufacturer to a service provider

Although a lot of literature emphasizes the benefits for a manufacturer to become a service provider, few describe the situation in which extending service is a good strategy. This paper has clearly differentiated service provider from manufacturers providing services by dividing the transition path into two stages. Then a model integrating factors of service strategy formulation and implementation is proposed, and a comparative cases analysis with replication logic is conducted to validate this model. Based on academic literatures and cases analyses, we concluded that not all manufacturers should adopt service strategy when confronting with intensive competitions, and that not all companies adopting service strategies can succeed, since appropriate organizational changes are critical.