Organizational empowerment and service strategy in manufacturing

Organizational adaptation is important and necessary for manufacturing firms with an extended service business, because providing service requires a different business logic than that needed in managing a manufacturing system. This study examined the relationships between organizational empowerment, service strategy, and business performance by analyzing global data from the fifth round of International Manufacturing Strategy Survey. The results indicated that the service strategies of manufacturers were positively related to business performance in both high- and low-intensity competition environments. Organizational empowerment was significantly associated with service strategy, and technological change played a positive moderating role between them. This study contributes to the literature by exploring the role of organizational empowerment in the service strategies of manufacturing firms.