Re-discussion of servitization strategy and firm performance

Abstract

Servitization innovation is critical for manufacturing firms to strengthen their sustainable competitive advantage in a dynamic business environment. Current research on the relationship between servitization and firm performance has matured, but many conclusion remain divergent. That cannot only hinder the development of servitization theory, but also make manufacturers lack a scientific basis for deciding whether to develop servitization. Thus, this study aims to systematically analyze the quantitative research results in this field through Meta-analysis methods to reveal the reasons for the disagreement. After collecting 59 independent articles on servitization and firm performance, this study performed statistical analysis using Meta-analysis. Then, the relationship between servitization and firm performance was explored, as well as the effects of different potential moderating variables. The moderate positive relationship between servitization strategies and their different orientations and firm performance is found. For the moderating variables, the servitization strategy has a more significant effect on non-financial performance. And they are more correlated when there are mediator variables. The impact of firm servitization transformation in developing regions is better than in developed areas. A stable market environment is more beneficial to the servitization transformation. The transformation effect of high-tech manufacturing is better than that of traditional manufacturing. And the transformation effect of large companies is better than that of small and medium-sized companies.

Servitization and firm productivity premium across the product value chain: evidence from Russian manufacturing firms

“…This includes the impact of service exports on goods exports (Ariu et al, 2016), internationalization through foreign direct investment (Görg and Jabbour, 2016) and the offshoring of intermediate inputs (Debaere et al, 2013), which also enhances efficiency and enables the generation of additional revenue. Second, servitization brings changes across the entire product value chain and impacts firm performance in several ways by altering production and organizational business models (Huang et al, 2020;Li et al, 2022).…”

“…To sum up, the question of whether servitization can enhance firm productivity remains unresolved. Li et al (2022) have urged other researchers to investigate this relationship between servitization and firm productivity across various contexts and perspectives.…”

Mastering customer lock-in by servitization innovation strategies of asset specificity

“…Servitization helps manufacturing manufacturers break the current competitive landscape and enhance enterprise value while meeting customer needs (Rosa et al , 2018; Li et al , 2022). Factors affecting transaction costs include asset specificity, uncertainty and frequency (Lietke and Boslau, 2007; Ruiz-Martín and Díaz-Garrido, 2021).…”