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Servitization and Sustainable Value Creation Strategy for China’s Manufacturing Industry: A Multiple Case Study in the Belt and Road Initiative

Author

Listed:
  • Yuan Chang

    (Institute of Industrial Engineering and Management, School of Mechanical Engineering, Shanghai Jiao Tong University, 800 Dongchuan Road, Minhang District, Shanghai 200240, China)

  • Xinguo Ming

    (Institute of Industrial Engineering and Management, School of Mechanical Engineering, Shanghai Jiao Tong University, 800 Dongchuan Road, Minhang District, Shanghai 200240, China)

  • Xianyu Zhang

    (Institute of Industrial Engineering and Management, School of Mechanical Engineering, Shanghai Jiao Tong University, 800 Dongchuan Road, Minhang District, Shanghai 200240, China)

  • Tongtong Zhou

    (Institute of Industrial Engineering and Management, School of Mechanical Engineering, Shanghai Jiao Tong University, 800 Dongchuan Road, Minhang District, Shanghai 200240, China)

  • Xiaoqiang Liao

    (Institute of Industrial Engineering and Management, School of Mechanical Engineering, Shanghai Jiao Tong University, 800 Dongchuan Road, Minhang District, Shanghai 200240, China)

  • Sijia Cao

    (Institute of Industrial Engineering and Management, School of Mechanical Engineering, Shanghai Jiao Tong University, 800 Dongchuan Road, Minhang District, Shanghai 200240, China)

Abstract

Manufacturers are adding service offerings to satisfy customers’ needs in various markets. Effective strategies for servitization can improve the competitiveness of manufacturers during cooperation. The Belt and Road Initiative (BRI) established by China offers opportunities for economic cooperation and regional integration for the involved countries. Now, many manufacturing firms are expanding their businesses into Belt and Road countries, most firms are facing the “how to do” problems in improving sustainability during their cooperation. They urgently require methodical assistance on both improving competitiveness through servitization and addressing sustainability challenges. This necessitates the firms to develop successful service models for their industrial initiatives and investigate ways to produce long-term sustainable value through services. In addition to the firm’s economic worth, it also entails lowering the project’s negative environmental impact. The results provided effective strategies for manufacturers from two perspectives. The first perspective is the study discovered innovative service models at both the product and project levels. Project-service systems are critical, and manufacturing firms should use innovative service models to deliver projects. The operation method of holistic solution and localization integration project service was addressed in particular in this study. In the second perspective, there are suggestions for achieving sustainability through innovative service models. The methods for preserving sustainable value on the industrial project level were the subject of our study, which included significant criteria and detailed descriptions. The effective project service system should bring sustainable value to the lifespan of an industrial project. This study has determined four major paths to improving sustainable value creation through servitization: improving resource allocation capabilities, reduce carbon emissions through energy project service, technological outputs, and standards exportation. Useful recommendations are provided for manufacturing firms planning to develop their business overseas, especially in BRI countries.

Suggested Citation

  • Yuan Chang & Xinguo Ming & Xianyu Zhang & Tongtong Zhou & Xiaoqiang Liao & Sijia Cao, 2021. "Servitization and Sustainable Value Creation Strategy for China’s Manufacturing Industry: A Multiple Case Study in the Belt and Road Initiative," Sustainability, MDPI, vol. 13(20), pages 1-28, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:20:p:11334-:d:655763
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