Servitization and performance: the moderating effect of supply chain integration

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.