Servitization and performance: impacts on small and medium enterprises
Journal of Business & Industrial Marketing
ISSN: 0885-8624
Article publication date: 8 April 2020
Issue publication date: 19 June 2020
Abstract
Purpose
This study aims to examine the impact of the servitization on the performance of small and medium enterprises (SMEs) in Brazil.
Design/methodology/approach
The study uses data from Brazilian SMEs and applies partial least squares structural equation modeling (PLS-SEM) to test the research hypotheses.
Findings
The findings suggest a positive relationship between servitization and SME performance. It is found that the strategy of offering base services does impact SME performance. Furthermore, servitization aims to promote a fit between environmental pressures and SME performance.
Practical implications
SMEs can use servitization to increase their performance in spite of their resources restrictions, size limitation and low level of service revenue. However, the adoption of servitization should be accompanied by managerial adjustments in servitization practices.
Originality/value
This paper is dedicated to investigating the servitization-performance relationship in the context of SMEs, which is not a usual research publication. Moreover, it adds to the servitization theory by demonstrating that it is not necessary to reach a critical mass of services to be profitable and base services may be also a source of revenues and profits.
Keywords
Citation
Queiroz, S.A.B., Mendes, G.H.S., Silva, J.H.O., Ganga, G.M.D., Cauchick Miguel, P.A. and Oliveira, M.G. (2020), "Servitization and performance: impacts on small and medium enterprises", Journal of Business & Industrial Marketing, Vol. 35 No. 7, pp. 1237-1249. https://doi.org/10.1108/JBIM-06-2019-0277
Publisher
:Emerald Publishing Limited
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