Journal of the Korean Operations Research and Management Science Society (한국경영과학회지)

The Korean Operations Research and Management Science Society (한국경영과학회)
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Servitization Investment Decisions and a Dynamic Stability Analysis Based on a Two-Sided Market Model

양면시장 모형에 기반 한 서비스화 투자 결정과 동태적 균형 분석

  • Received : 2012.11.25
  • Accepted : 2013.05.01
  • Published : 2013.06.30
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Abstract

We present a model, combining servitization decision and a conventional two-sided market approaches, to understand expected outcomes and current market situations. We suppose an individual manufacturer participates in multiple platforms and decides whether to initiate servitization by considering latent profitability and risk. The analytical results from the model show that increasing competition within servitized companies lead to a servitization equilibrium, wherein the ratio of servitized companies in a market is stable, due to a gradual decline in relative benefits compared to non-servitized companies. This holds even in the case that the number of customer is increasing along the diffusion of servitization, under some restricted conditions.

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References

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