Manufacturing, service, and their integration: some history and theory

Purpose - The purpose of this paper is to explain why the historical integration of manufacturing with service was quickly seen as advantageous in some circumstances, but not so in others.Design methodology approach - The paper reviews the history of manufacturing companies in the USA during the las...

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Bibliographic Details
Published in:International journal of operations & production management 2009-04, Vol.29 (5), p.431-443
Main Author: Schmenner, Roger W.
Format: Article
Language:English
Subjects:
19th century
Cigarettes
Customer services
Factories
Flour
History
Innovations
Manufacturers
Manufacturing
Manufacturing industries
Oats
Operations management
Retail stores
Sales
Service industries
Studies
Supply chains
Technological change
Tobacco
Vertical integration
Wholesalers
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Summary:Purpose - The purpose of this paper is to explain why the historical integration of manufacturing with service was quickly seen as advantageous in some circumstances, but not so in others.Design methodology approach - The paper reviews the history of manufacturing companies in the USA during the last half of the nineteenth century, categorizes them, and ties them to theory.Findings - The bundling of manufactured goods to downstream-available services was led by companies with new products but with no great manufacturing strengths, as a way to establish barriers to entry. Companies with significant manufacturing capabilities were not as quick or as complete in their integration of manufacturing and service.Originality value - This paper shows that servitization has antecedents that go back 150 years.
ISSN:0144-3577
1758-6593
DOI:10.1108/01443570910953577