Servitisation or Productisation? Two cases of service-based SMEs moving into manufacturing

Purpose: This paper presents a preliminary comparison of two service-based SMEs which moved into product development and manufacturing. The motivations, mechanisms, customer benefits and outcomes in adopting productisation, and the potential influence on servitisation, were investigated. Approach: Following a thematic analysis, nine themes for comparison were identified from two previous publications. These themes were then mapped to the four aims of the investigation. Findings: There were similarities in terms of the motivations for productisation and the mechanisms for acquiring manufacturing capability. However, the organisations have subsequently evolved in different ways. The findings highlight a positive impact on organisational innovation, but also indicate that the embodiment of customer value and the supply chain may limit potential servitisation. Originality/Value: Cases of service organisations manufacturing are not well known and are therefore an interesting counterpoint to the existing literature on servitisation.