How servitization affects firm performance: the moderating roles of corporate social responsibility and green innovation

Zichao Yang · Luo Jian-qiang · Taiwen Feng

29 citations0/0 files storedJournal of Manufacturing Technology Management

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Service and Product Innovation Environmental Sustainability in Business Sustainable Supply Chain Management

Abstract

Purpose This study aims to examine how degree of servitization and breadth of servitization affect the firm performance, and the moderating roles of corporate social responsibility (CSR) and green innovation. Design/methodology/approach The hypotheses are tested using panel data regression models from 2010 to 2020 based on 10,539 firm-year observations from 2,362 Chinese listed manufacturers. Findings Considering the classification of servitization, the results show that both degree and breadth of servitization have positive impacts on firm performance. In addition, CSR strengthens these impacts, while green innovation only strengthens the impact of degree of servitization on firm performance. Practical implications This study suggests that manufacturers should obtain greater profits by actively implementing the servitization strategy, and effectively take their social responsibility by achieving value co-creation with stakeholders. Also, they should carry out green innovation, develop green products and provide eco-friendly services. Originality/value This study contributes to the servitization literature by deepening the understanding of the value creation effect of services based on the service-oriented logic. Also, this study contributes to the sustainability literature stream by revealing the moderating roles of CSR and green innovation based on the stakeholder theory.

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References

2015Institutions and axioms: an extension and update of service-dominant logic 1988Servitization of business: Adding value by adding services 2012Determinants of eco-innovations by type of environmental impact — The role of regulatory push/pull, technology push and market pull 2019Green process innovation, green product innovation, and corporate financial performance: A content analysis method 2008Exploring the financial consequences of the servitization of manufacturing 2015Green Innovation and Performance: The View of Organizational Capability and Social Reciprocity 2014Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance 2019A Stakeholder Theory Perspective on Business Models: Value Creation for Sustainability

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