Servitization in China via an External Service Partner Network: Applying the MOA Framework

Previous research has predominately focused on the servitization strategies of Western manufacturers in advanced economies, neglecting the potential in those which are emerging, such as China. This paper explores the role of the external service partner network of a European manufacturer providing services in China in order to develop a better understanding of the challenges. An in-depth multiple case study approach was taken to examine the parent company, its subsidiary in China and the related service partner network. Data collection involved all three actors and took place in Denmark and China. The findings suggest that motivation, opportunity and ability (MOA) need not only be mutually reinforcing for the organization attempting to move towards services but also congruent within the external service partner network. Furthermore, the findings suggest that an external service partner may not be able to deliver higher value-added services that need customization. This is the first paper to apply the MOA theoretical framework to understanding an external service partner network. It outlines important considerations for organizations wishing to provide advanced services and the inherent challenges and complexities for a Western manufacturer of attempting to move towards greater service provision in China.