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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.

As an effective mode to help small and medium enterprises (SMEs) raise working capital, supply chain finance has recently gained extensive attention. The purpose of this paper is to explore the intrinsic mechanism of how both weak and strong ties in the supply chain network impact the supply chain financing performance (SCFP) of SMEs from the perspective of the supply chain network.

Based on the extended resource-based perspective, this paper proposes a theoretical model to explain the mode in which strong ties and weak ties of SMEs in the supply chain network influence SCFP through both physical distribution flexibility and demand management flexibility. Based on data from 182 manufacturing firms in China, this paper uses multiple regression analysis to test hypotheses.

The results of this paper indicate that weak ties improve SCFP more effectively than strong ties. Furthermore, both physical distribution flexibility and demand management flexibility exert different mediating roles either between strong ties and SCFP or between weak ties and SCFP. Moreover, the effect of physical distribution flexibility and demand management flexibility on SCFP of SMEs is not reinforced.

This paper highlights the importance to expand supply chain finance research from the perspective of the supply chain network. In particular, this paper explores the poorly understood mediating effect both physical distribution flexibility and demand management flexibility exert on the relationship between network ties and the SCFP of SMEs.