An Integrated Organizational Performance Model for Dual-Sector Companies: The Moderating Role of Company Size

The increasing adoption of servitization has led many manufacturing companies to operate simultaneously in manufacturing and service activities, creating dual-sector business models characterized by heightened organizational complexity. Although prior research acknowledges that both internal capabilities and contextual conditions shape organizational outcomes, fewer studies have examined these variables within the same empirical model in companies operating under both manufacturing and service logics. Drawing on the resource-based view and contingency theory, this study examines the effects of organizational culture, organizational commitment, knowledge management, environmental uncertainty, and employee retention on organizational performance in dual-sector companies, while also assessing whether these relationships vary by company size. Survey data were collected from 433 employees working in dual-sector companies and were analyzed using confirmatory factor analysis, covariance-based structural equation modeling, and supplementary hierarchical regression analysis. The findings indicate that environmental uncertainty and employee retention did not receive empirical support as independent direct predictors in the structural model. Organizational commitment, knowledge management, and two dimensions of organizational culture—consistency and adaptability—are significant positive predictors of perceived organizational performance. The moderation analysis does not provide strong evidence that company size changes these relationships, although the interaction suggests that environmental uncertainty may be more consequential in large firms. This study contributes to research on servitization by showing that, in dual-sector companies, performance is most strongly associated with internal capabilities that support coordination, shared meaning, and knowledge integration across manufacturing and service activities. For managers, the results highlight the importance of strengthening commitment, adaptive coordination, and cross-domain knowledge processes rather than relying on retention efforts alone.