Understanding the Influence of Servitization on Global Value Chains: A Conceptual Framework

Ismail Golgeci*, David Marius Gilgor, Ewelina Lacka, Jawwad Raja

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review

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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, the authors 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
The authors 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 subclusters 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
Number of pages23
ISSN0144-3577
DOIs
Publication statusPublished - 11 May 2021

Bibliographical note

Epub ahead of print. Published online: 11. May 2021

Keywords

  • Servitization
  • Global Value Chains (GVCs)
  • Structure
  • Governance

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