A contingency perspective on the operating models of global servitization

When industrial manufacturers pursue growth in their service business, they set up operations in different locations, often in different countries globally. Each service business unit will need to align its operating model with the local circumstances and requirements, which may be extremely challenging. While earlier research covers some aspects of internationalizing service business, understanding the contingencies that influence the definition of location-specific operating models requires further research. This paper explores the changes to the operating models of an internationally-operating manufacturer that is on its move to an extended global service business. We conducted an in-depth case
study to gather evidence on the impact of various actors and contingencies on the manufacturer's operating models. We found that both internal (e.g., subsidiaries) and external (e.g., dealers, distributors and service partners) actors greatly affect the development of global service sales, depending on the business
consistency and heterogeneity of the target markets. Adopting a contingency theory perspective, we provide empirical insights about the tensions that affect the operating models of global service provision in manufacturing.