Riding the wave of belt and road initiative in servitization: Lessons from China

Abstract

In light of increasing demand in services, manufacturers are moving further downstream in order to interact and respond to customers’ needs more effectively. Several authors have proposed servitization models based on the product service system (PSS) concept. However, little is available to guide manufacturers to integrate their products and services in practice. Existing models tend to be vague in their implementation details, and the successful examples provided are mainly based on the multinational firms in developed countries. This paper aims to address the manufacturing servitization gap both in the literature and practice. This paper proposes a CIT (Customer Co-creation; Strategic Intent; Technology Mapping) framework to guide Chinese manufacturers to tap into the service value chain. The developed framework is then tested in a firm. This paper discusses the feasibility and practical implications of the proposed framework, and the wider implications for servitization under the belt and road initiative.