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This paper aims to discuss the firm productivity premium for servitized firms. It discusses servitization across the product value chain and estimates the effects of the range and extent of servitization on productivity premium in manufacturing firms.

This paper develops a conceptual framework and tests the hypotheses on the effects of servitization on productivity premium using linear regression models with a sample of 20,837 Russian manufacturing firms gathered from the Ruslana Bureau van Dijk database and the Russian customs service.

Servitized firms exhibit higher total factor productivity and labor productivity. The labor productivity premium increases with the number of services offered. However, the impact of services on productivity varies along the product value chain: postmanufacturing and postsales services enhance productivity premium, while manufacturing and back-office services diminish them. The effect of establishment services remains ambiguous.

This paper offers an analytical framework for firms to assess their servitization strategies. These strategies should be gradual, focused on enhancing firm efficiency rather than being an end goal. Firms should initiate the process by introducing services at the postproduction and postsales stages of the product creation chain to achieve productivity premium.

The paper extends the evidence on firm-level productivity drivers and contributes to the servitization theory. A servitization strategy should be portfolio-based, considering both the potential gains and losses in productivity resulting from the implementation of specific services.

Servitization of products is becoming increasingly prevalent among manufacturing enterprises. Existing research has primarily focused on exploring whether the direct impact of servitization on manufacturer performance follows a linear or a curvilinear relationship. However, the understanding of the underlying mechanisms between servitization and manufacturer financial performance remains limited. This paper aims to examine the non-linear relationship between servitization and manufacturer performance as well as the mediating process and boundary condition associated with this relationship.

Drawing on resource-advantage theory, this paper proposes a theoretical model of the U-shaped relationship between servitization and the financial performance of equipment manufacturers. Panel data of 248 listed equipment manufacturers in China during the period of 2010–2020 are used to test each hypothesis through the ordinary least square method.

The empirical results indicate that servitization follows a U-shaped relationship with service business focus and the financial performance of equipment manufacturers. Service business focus mediates this U-shaped relationship between servitization and financial performance, and digital technology application moderates this relationship.

This paper pioneers the unraveling of the potential mechanism that can explain the curvilinear relationship between servitization of manufacturers and financial performance. This mechanism is the focus of the service business, which is theoretically delineated and empirically tested. Furthermore, digital technology application enables manufacturers to achieve service business focus more effectively in the process of servitization. Thus, this study addresses the call for research on digital servitization.

Despite the increasing attention given to product-service integration (PSI), little is known about this innovation strategy from a key decision-maker’s perspective. To address this gap, our study draws from personality psychology and decision-making (DM) logics theory to better understand why and how companies’ decision-makers strategize for PSI.

Using an abductive, empirics-first approach, we identify the study’s theoretical building blocks, followed by an exploratory quantitative analysis to generate new theory. We propose a fit-as-mediation conceptual framework suggesting that (1) specific personality traits [i.e. honesty-humility (H), emotionality (E), extraversion (X), agreeableness (A), conscientiousness (C) and openness to experience (O) (HEXACO)] make decision-makers more likely to include PSI in their company’s strategy and (2) depending on their personality, they apply different DM logics (i.e. causation or effectuation) to do so. To empirically examine this, we use data from 289 SMEs’ decision-makers.

We report several meaningful relationships among our key theoretical constructs. For instance, we find that conscientious decision-makers are more likely to develop a PSI strategy via causation, whereas extravert decision-makers are more likely to do so via both causation and effectuation.

This service study is the first to apply the well-established HEXACO Personality Inventory to companies’ key decision-makers. Moreover, it contributes to the microfoundations of PSI strategy and DM logic theories.

This study examines the mediating and moderating effects of business regulatory compliance (BRC) on the association between sustainable supply chain management practices (SSCMP) and operational performance (PERFOP), and how corporate sustainability culture (CSC) serves as a boundary condition to BRC.

This research draws data from 245 firms operating in multiple industries in Ghana. Ordinary Least Square (OLS) was employed to test the direct effects, while Hayes Process Macros was employed to test the indirect and conditional effects among the study variables using a structural equation modelling approach.

The results showed that SSCMP has a direct positive effect on PERFOP. The study further revealed that BRC mediates the relationship between SSCMP and PERFOP. This study found that BRC negatively moderates the association between SSCMP and PERFOP, suggesting that high levels of BRC generate unintended adverse effect on the SSCMP- PERFOP link. However, the results revealed that CSC serves as a boundary condition to BRC.

To the best of our knowledge, this is the first study that emphasizes how the resource-based view and regulatory focus theory interact to explain how different degrees of CSC and BRC impact SSCMP performance outcomes. This study advances research in the sustainability literature, in response to calls for further research in this domain. This study draws decision-makers attention on the need to make sustainability practices an integral part of corporate culture in order to set a business tone that stimulates easy compliance to sustainability requirements.