Published : 2019-09-30

Servitisation of manufacturing industry in Japan

Abstract

The recent decline in the profitability of Japanese manufac‑ turers has led to ‘service innovation’ or servitisation – the development of advanced service businesses utilising infor‑ mation technology. This study analyses 13,322 companies in the Japanese manufacturing industry and finds that servitisa‑ tion contributes to their profitability. The major difference between servitisation companies and others is that the former sell products to end consumers. We examine two case studies of companies which have built mechanisms to facilitate continuous service provision.

Keywords:

Servitisation, R&D expenditure, service innovation, diversification



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Shikata, N., Goto, S. ., & Gemba, K. . (2019). Servitisation of manufacturing industry in Japan. Forum Scientiae Oeconomia, 7(3), 19–30. https://doi.org/10.23762/FSO_VOL7_NO3_2

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