The impact of servicization of manufacturing firms on bullwhip effects

Shenyang Jiang, Zhibin Jiang, Yimeng Niu, Jing Wu

Research output: Contribution to journalArticleScientificpeer-review

Abstract

Service-oriented economies have triggered manufacturing firms to increasingly integrate services into their businesses. This section delves into the impact of servicization on two key bullwhip effects: the felt bullwhip, representing demand variability, and the intra-firm bullwhip, reflecting demand distortion. Manufacturers typically offer services complementing product sales, like maintenance and repair, and those replacing product sales, like machine hours. Employing text mining techniques, two service categories in 10-K reports are identified. Complementing services initially lead to a decrease in demand variability, while substituting services subsequently results in diminished demand distortion.
Original languageEnglish
Pages (from-to)304-317
Number of pages14
JournalFoundations and Trends in Technology, Information and Operations Management
Volume16
Issue number3–4
DOIs
Publication statusPublished - Jun 2023
Externally publishedYes

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