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Research Article

Exploring the Impact of Servitization on Chinese Manufacturing Firm Performance: An Analysis of the Role of Management Capabilities and Competitive Strategy

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ABSTRACT

This research explores the complementary factors to servitization and firm performance. The management capabilities mediate, significantly impacting the firm’s performance. The competitive strategy is used as a moderator to enhance the servitization phenomena. A sample size of 236 medium to large manufacturing firms operating in different provinces of China. The study results show that management capabilities fully mediate the relationship between servitization and firm performance, and competitive strategies positively moderate the relationship between servitization and management capabilities. Firms must understand the local environment of China and have competent management skills to develop a competitive strategy for servitization to be successful.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Sample collection detail

Province=

Sample size

Guangdong=

47

Henan=

37

Shanxi=

34

Shanxi=

30

Shandong=

21

Jiangsu=

13

Zhejiang=

11

Shanghai=

10

Beijing=

6

Sichuan=

5

Hebei=

4

Jilin=

4

Liaoning=

3

Hubei=

2

Chongqing=

2

Hunan=

2

Anhui=

1

Guangxi=

1

Ningxia=

1

Tianjin=

1

Yunnan=

1

Total=

236

Dimensions of servitization

  1. Product inspection or diagnostic services.

  2. Spare parts provide service.

  3. Product maintenance or troubleshooting service.

  4. To help customers use products correctly and efficiently, provide training services.

  5. Daily inspection and maintenance of products.

  6. Production process consulting service to assist customers in product selection.

  7. Production process optimization services to help customers improve production efficiency.

  8. Design a complete set of systems for customers.

  9. Customized product design and manufacturing services.

  10. Maintain our company’s products and take over the maintenance responsibilities of users.

  11. Provide logistics services for users.

  12. Users no longer need to buy products and directly provide users with the ultimate utility of the product.

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