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Servitization and organizational resilience of manufacturing firms: Evidence from the COVID-19 outbreak

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  • Li, Huashan
  • Pournader, Mehrdokht
  • Fahimnia, Behnam

Abstract

This study examines how service-oriented business model diversification of manufacturing firms (i.e., servitization) has affected their organizational resilience during the COVID-19 outbreak. We investigate the impact of two types of servitization – product-oriented vs. customer-oriented services – on organizational resilience. Using secondary data collected from 1,914 manufacturing firms listed in the US stock markets, we find that servitization is inversely related to organizational resilience during the COVID-19 disruption; that is, manufacturing firms with more revenue from service businesses endure more significant stock price loss and take longer to bounce back from the loss caused by the COVID-19 disruption. The impact is more pronounced for manufacturing firms providing product-oriented services (than those providing customer-oriented services). This study extends the understanding of the dark side of servitization relating to organizational resilience during a major disruption.

Suggested Citation

  • Li, Huashan & Pournader, Mehrdokht & Fahimnia, Behnam, 2022. "Servitization and organizational resilience of manufacturing firms: Evidence from the COVID-19 outbreak," International Journal of Production Economics, Elsevier, vol. 250(C).
    • Handle: RePEc:eee:proeco:v:250:y:2022:i:c:s0925527322002675
    DOI: 10.1016/j.ijpe.2022.108685
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    References listed on IDEAS

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    Cited by:

    1. Caputo, A.C. & Donati, L. & Salini, P., 2023. "Estimating resilience of manufacturing plants to physical disruptions: Model and application," International Journal of Production Economics, Elsevier, vol. 266(C).
    2. Bernardo Nicoletti & Andrea Appolloni, 2023. "Artificial Intelligence for the Management of Servitization 5.0," Sustainability, MDPI, vol. 15(14), pages 1-13, July.
    3. LIANG, Licheng, 2023. "Resilience of Japanese Multinational Enterprises' Production Networks during the COVID-19 Pandemic," Discussion Paper Series 742, Institute of Economic Research, Hitotsubashi University.

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