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Servitization: Its preferred organization and impact on firm performance

  • Huashan Li*
  • , Guyang Tian
  • , Yezhuang Tian
  • *Corresponding author for this work
  • School of Management, Harbin Institute of Technology
  • Harbin Normal University

Research output: Contribution to journalReview articlepeer-review

Abstract

This article addresses the performance implication of servitization and the configuration of servitization and organizational characteristics. We propose hypotheses regarding the relation between two types of servitization (basic services vs. advanced services) and firm performance, and how organizations' decision-making features moderate these relations. Hypotheses are tested based on a survey of 931 plants from 22 countries. The results show that the advanced services (ADS) improve market, financial, and operational performance, while the basic services (BAS) only improve market performance. In addition, the positive relation between the ADS and firm performance is stronger in organizations with a participative and decentralized decision-making process.

Original languageEnglish
Pages (from-to)181-193
Number of pages13
JournalHuman Systems Management
Volume37
Issue number2
DOIs
StatePublished - 2018
Externally publishedYes

Keywords

  • Servitization
  • advanced services
  • basic services
  • organizational characteristics

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