The impact of patient capital on the servitization of manufacturing evidence from China

As global value chains undergo structural realignment and market rivalries intensify, the strategic shift toward manufacturing servitization has become indispensable for traditional enterprises striving to climb the value ladder. However, this transition is often hindered by the servitization paradox, wherein substantial long-term funding and high risk tolerance clash with the short-term focus of conventional financial markets. Such "impatient capital" often triggers severe maturity mismatches, stifling corporate transformation. By integrating the unique perspective of patient capital, this research examines a panel of Chinese A-share manufacturing firms spanning 2012 to 2023 to untangle how capital attributes dictate servitization outcomes.The empirical evidence suggests that patient capital serves as a vital catalyst for servitization, a result that withstands rigorous scrutiny through various robustness tests, such as sample period adjustments and the exclusion of specific administrative regions. Delving into the underlying logic, this study identifies a tripartite transmission framework: patient capital empowers firms by curbing internal agency conflicts, bridging the information gap with external investors, and bolstering the financial resilience necessary for heightened risk-taking. Further granular analysis indicates that this fostering effect is contingent upon industry characteristics and policy mandates, displaying pronounced strength among high-tech firms, non-heavily polluting enterprises unburdened by strict emissions compliance, and highly regulated sectors aligned with national strategic restructuring. By illuminating the "black box" through which capital maturity and risk appetite shape corporate foresight, these findings offer critical micro-level insights. The study ultimately underscores the urgency of financial supply-side reforms aimed at mobilizing long-term capital to sustain the high-quality evolution of the real economy.