An investigation of the relationship between behavioral processes, motivation, investments in the service business and service revenue [An article from: Industrial Marketing Management]

This digital document is a journal article from Industrial Marketing Management, published by Elsevier in 2007. The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.

Description:
Despite the established benefits of services in manufacturing companies, very few managers are motivated to invest resources in extending the service business. On the basis of a combination of qualitative and quantitative research approaches, we illustrate that managers cannot be easily motivated. Managerial motivation to extend the service business in manufacturing companies is more like a process that must grow organically. To do so, managers have to overcome some of the typical behavioral processes of manufacturing companies. In greater detail, we explore how the disbelief in the financial opportunities of services risk aversion in exploiting strategic opportunities, setting overambitious objectives and an overemphasis on obvious causalities limit managerial motivation to extend the service business. If manufacturing companies can overcome these behavioral processes, the managerial motivation will increase, leading to more investments in the service business and thus enhancing service revenue and overall profitability.