The Effect Of Interactive Relationship Between Product And Service On Competitive Advantage Of Manufacturing Firms

The main research of the products servitization emphasize on the extend value and enhanced effect of service for product, and its effect on promoting competitive advantage of enterprise; However, literature about product’s impact on its service is little, which is not good for the building of product service system’s overall value, also not good for the expanding competitive advantage. For the above reason, the study will try to research the interactive relationship between product and service, and its influence on competitive advantage from the perspective of product. Based on the related research literature review and describes, this study building the analysis framework on two kinds of products attributes, namely, utilitarian attributes and hedonic attributes, to in-depth analysis of the interaction relationship. And from the perspective of the enterprise service paradox and reversed servitization, discussed the manufacturing enterprise insourcing. By means of the manufacturing enterprise case analysis, demonstrates the interaction relationship influence of the enterprise competitive advantages. The study suggests that a large number of firms might easily get into trouble with “service paradox” because of lacking knowledge accumulation. These firms always solely depend on their own knowledge resources or adopt simply service outsourcing to conduct service innovation. While market within the organization may be able to make the enterprise services by terminal extended to the whole internal service system, improve the efficiency of internal and external services. At the same time, the productizing services may represent an active kind of reversed servitization phenomenon. The interaction of product and service not only promote and driven tangible knowledge based on service to realize the value of curing extension and upgrade, but also make the connotation and characteristics of competitive advantage different from the traditional, thus it have important significance on enhancing the special competitive advantage.