Manufacturing, service, and their integration: some history and theory

Purpose - The purpose of this paper is to explain why the historical integration of manufacturing with service was quickly seen as advantageous in some circumstances, but not so in others. Design/methodology/approach - The paper reviews the history of manufacturing companies in the USA during the last half of the nineteenth century, categorizes them, and ties them to theory. Findings - The bundling of manufactured goods to downstream-available services was led by companies with new products but with no great manufacturing strengths, as a way to establish barriers to entry. Companies with significant manufacturing capabilities were not as quick or as complete in their integration of manufacturing and service. Originality/value - This paper shows that servitization has antecedents that go back 150 years.