IDEAS home Printed from https://ideas.repec.org/a/cup/jomorg/v31y2025i6p2793-2820_12.html

Executive cognition and servitization of manufacturing firms: Empirical evidence from listed companies in China

Author

Listed:
  • Du, Fangli
  • Li, Jinghua
  • Zhang, Justin Zuopeng

Abstract

Servitization is a key strategy for enhancing competitiveness in manufacturing, yet the managerial drivers behind this transformation remain underexplored. This study investigates the impact of top executives’ service cognition on servitization using a novel index derived from text-mined disclosures of Chinese listed manufacturing firms (2007–2020). Results show that executives’ service cognition significantly promotes servitization, even after controlling for endogeneity using instrumental variables and Heckman’s two-stage model. Mechanism analysis reveals that this cognitive orientation enhances human capital accumulation and R&D investment, which in turn drive higher service levels. Furthermore, the relationship is moderated by executive power concentration and regional internet penetration. Heterogeneity tests indicate stronger effects in high-tech industries, state-owned enterprises, and large firms. These findings highlight the critical role of executive cognition in shaping strategic transformation and offer practical implications for firms and policymakers aiming to foster servitization through leadership development and supportive digital infrastructure.

Suggested Citation

  • Du, Fangli & Li, Jinghua & Zhang, Justin Zuopeng, 2025. "Executive cognition and servitization of manufacturing firms: Empirical evidence from listed companies in China," Journal of Management & Organization, Cambridge University Press, vol. 31(6), pages 2793-2820, November.
    • Handle: RePEc:cup:jomorg:v:31:y:2025:i:6:p:2793-2820_12
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S183336722510031X/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jomorg:v:31:y:2025:i:6:p:2793-2820_12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jmo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.