“…Fan et al [ 11 ], construct a linear regression model to test the effect of service trade and technological distance on the servitization of manufacturing and included the same control variables; with time, industry, and country fixed effects; and error terms. Referring to the studies of Joseph et al , [ 75 ] and Wang and Ji [ 76 ], it is necessary to include a non-linear factor in the model because the relationship between the variables is actually more complex and sometimes not necessarily a simple linear relationship. The main effect (the effect of manufacturing firms' servitization on performance) is examined by including both the primary SER it and quadratic SER it 2 terms of the explanatory variables in the construction of the model to test whether the relationship between manufacturing firms’ servitization and performance is linear or U-shaped, as derived from the aforementioned literature.…”