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Servitization and performance: the moderating effect of supply chain integration

  • Huashan Li*
  • , Yang Yang
  • , Prakash Singh
  • , Hongyi Sun
  • , Yezhuang Tian
  • *Corresponding author for this work

    Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

    Abstract

    This research aims to explore how supply chain integration moderates the relationship between servitization and performance. Based on the resource-based view and transaction cost economics, we identified both the benefits and disadvantages of supply chain integration in servitization. Consistent with prior research, we differentiated basic services from advanced services. Hypotheses were tested using international survey data from 931 manufacturing business units. The results indicate that basic services are positively related to sales growth, while advanced services are positively related to return on sales (ROS) growth. Regarding the moderating role of supply chain integration, supplier integration enhances the positive relationship between basic services and sales growth. Customer integration strengthens the relationship between advanced services and ROS growth but weakens the relationship between basic services and ROS growth. Our results suggest that the choice of supplier and customer integration should be aligned with the types of services to maximize the benefits of servitization.
    Original languageEnglish
    Pages (from-to)242-259
    JournalProduction Planning and Control
    Volume34
    Issue number3
    Online published6 Apr 2021
    DOIs
    Publication statusPublished - 2023

    UN SDGs

    This output contributes to the following UN Sustainable Development Goals (SDGs)

    1. SDG 9 - Industry, Innovation, and Infrastructure
      SDG 9 Industry, Innovation, and Infrastructure

    Research Keywords

    • advanced services
    • basic services
    • customer integration
    • Servitization
    • supplier integration
    • supply chain integration

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