Work

Servitization capabilities and network-level performance in manufacturing: evidence from the plant engineering industry

Year: 2026

Type: article

Abstract: In volatile manufacturing environments, particularly in project-based plant engineering, servitization is regarded as a strategic approach to enhance competitiveness and resilience. However, empirical evidence on the relationship between servitization capabilities and firm- and/or network-level performance remains limited. This study develops and tests a multi-level framework to examine how classical and digital servitization capabilities, enabled by predictive/analytical artificial intelligence (AI), link to operational performance. A sequential mixed-methods design combined expert interviews and structural equation modelling based on survey data. Qualitative findings identified digitalization, customer relationship management, and operational excellence as key capability domains. Quantitative results show that neither classical nor digital servitization capabilities significantly link to firm-level performance. Instead, both capabilities strongly link to network-level coordination, collective operational performance, and supply chain resilience. The findings shift the performance focus of servitization from individual firms to manufacturing ecosystems and highlight network orchestration and capability renewal as key drivers of competitive advantage.

Source: Production & Manufacturing Research

DOI: 10.1080/21693277.2026.2727808

Authors: Maxim Ruff, Manuel Woschank

Institutions: University of Latvia, Montanuniversität Leoben

Language: English

Topic: Service and Product Innovation

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,165