Can Chinese Manufacturing Get Performance Dividend through Servitization
- XIAO Ting
- Jiangxi University of Finance and Economics,330013.
Service-oriented transformation is a path to upgrading China's manufacturing industry. This paper focuses on the impact that the decision of servitization has on the enterprise performance, takes some of the listed manufacturing companies as samples, and fully controls the endogenous problems.The empirical analysis points out that in recent years, the servitization of manufacturing firms can raise the proportion of skilled workers only, but the association with profit margins and product sales is more complex. In general, manufacturing enterprises cannot get advantages in performance through servitization, instead, it is easier for them to fall into “service-profitparadox” in the short term,and the average profit margins fall by 6.2% in the following year. It will take a few years for servitization of manufacturing companies to gain profit and increase sales revenue. In enterprises of different sizes and different sectors, there were some differences in the performance of three technical indicators.
JEL：J21, L98, R11
- Servitization, Manufacturing,Firm Performance, Lagged Dependent Variable