Configurations for emerging market firms to achieve a high-level servitization strategy: evidence from Chinese manufacturing firms
Journal of Manufacturing Technology Management
ISSN: 1741-038X
Article publication date: 28 September 2023
Issue publication date: 16 November 2023
Abstract
Purpose
Emerging markets face the developmental circumstances of a weak foundation in both manufacturing and services. Although servitization is viewed as an opportunity to realise industry transformation and upgrading, ways for emerging market firms to implement a high-level servitization strategy is still understudied. This study examines combinations of causal conditions for emerging market firms to implement a high level of servitization.
Design/methodology/approach
Anchored in the strategy tripod model, this study examines the configurations for implementing a high-level servitization strategy by using fuzzy-set qualitative comparative analysis (fsQCA) and data from the China Stock Market and Accounting Research Database (CSMAR).
Findings
The findings identify three kinds of configurations for achieving a high-level servitization strategy: market-cultivational servitization, competition-driven servitization and government-related servitization. Furthermore, the mechanisms for implementing a high-level servitization strategy differ within the regional marketization level and state-owned equity. Specifically, the improvement of the regional marketization level helps manufacturing firms realise a high level of servitization by strengthening service capacity, and state-owned equity helps firms gain distinctive legitimacy to integrate suppliers and providers into the servitization context.
Research limitations/implications
The proposed multilevel perspective frameworks enable manufacturing firms in emerging markets to achieve a high level of servitization strategy.
Originality/value
This paper explores the impact of institutional environment, industry conditions and firm-level microfoundations on servitization, therefore providing a reference framework for emerging market firms interested in implementing high-level servitization strategies.
Keywords
Acknowledgements
This work was supported by the National Natural Science Foundation of China under Grant No. 72274174 and 71972003 and the Natural Science Foundation of Anhui Province, China under Grant No. 2008085MG236.
Citation
Zhu, J., Zhang, J., Jiang, Z. and Li, J. (2023), "Configurations for emerging market firms to achieve a high-level servitization strategy: evidence from Chinese manufacturing firms", Journal of Manufacturing Technology Management, Vol. 34 No. 8, pp. 1506-1526. https://doi.org/10.1108/JMTM-02-2023-0046
Publisher
:Emerald Publishing Limited
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