IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i20p9064-d1502236.html

Impact of Servitization on Employee Satisfaction with Performance Evaluation Systems: A Case Study of China’s New Energy Sector Amid Power Market Reforms

Author

Listed:
  • Qingmin Kong

    (School of Business Administration, Guangxi University, Nanning 530004, China
    School of China Frontier Economic Research Institute, Guangxi University, Nanning 530004, China)

  • Peng Lin

    (School of Business Administration, Guangxi University, Nanning 530004, China)

  • Tingting Gu

    (School of Business Administration, Guangxi University, Nanning 530004, China)

Abstract

This study investigates the mechanisms by which service-oriented transformation affects employee satisfaction with performance evaluation systems within the context of China’s electricity market reform. Using CGN New Energy’s Guangxi Branch as a case study and applying the grounded theory method, the research systematically analyzes employees’ perceptions of fairness, transparency, and career development during the transition from a product-oriented to a service-oriented model, based on in-depth interviews and surveys. The findings reveal that while servitization enhances employee skill development and career satisfaction, it also introduces challenges, such as increased work pressure and the demand for more transparent performance evaluation systems. This study provides valuable insights into optimizing management practices and performance evaluation systems in renewable energy companies, contributing both theoretically and practically to the literature on organizational transformation in the energy sector. These conclusions are not only significant for Chinese enterprises but also offer important reference points for global energy companies undergoing similar transitions.

Suggested Citation

  • Qingmin Kong & Peng Lin & Tingting Gu, 2024. "Impact of Servitization on Employee Satisfaction with Performance Evaluation Systems: A Case Study of China’s New Energy Sector Amid Power Market Reforms," Sustainability, MDPI, vol. 16(20), pages 1-18, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:20:p:9064-:d:1502236
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/20/9064/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/20/9064/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fatras, Nicolas & Ma, Zheng & Duan, Hongbo & Jørgensen, Bo Nørregaard, 2022. "A systematic review of electricity market liberalisation and its alignment with industrial consumer participation: A comparison between the Nordics and China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    2. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    3. Erik Lindhult & Koteshwar Chirumalla & Pejvak Oghazi & Vinit Parida, 2018. "Value logics for service innovation: practice-driven implications for service-dominant logic," Service Business, Springer;Pan-Pacific Business Association, vol. 12(3), pages 457-481, September.
    4. Shen, Lei & Sun, Wanqin & Parida, Vinit, 2023. "Consolidating digital servitization research: A systematic review, integrative framework, and future research directions," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    5. Geissinger, Andrea & Laurell, Christofer & Öberg, Christina & Sandström, Christian, 2023. "Social media analytics for innovation management research: A systematic literature review and future research agenda," Technovation, Elsevier, vol. 123(C).
    6. Bustinza, Oscar F. & Lafuente, Esteban & Rabetino, Rodrigo & Vaillant, Yancy & Vendrell-Herrero, Ferran, 2019. "Make-or-buy configurational approaches in product-service ecosystems and performance," Journal of Business Research, Elsevier, vol. 104(C), pages 393-401.
    7. Green, Richard, 2006. "Market power mitigation in the UK power market," Utilities Policy, Elsevier, vol. 14(2), pages 76-89, June.
    8. Ebrahim Navid Sadjadi & Roemi Fernández, 2023. "Relational Marketing Promotes Sustainable Consumption Behavior in Renewable Energy Production," Sustainability, MDPI, vol. 15(7), pages 1-18, March.
    9. Guo, Hongye & Davidson, Michael R. & Chen, Qixin & Zhang, Da & Jiang, Nan & Xia, Qing & Kang, Chongqing & Zhang, Xiliang, 2020. "Power market reform in China: Motivations, progress, and recommendations," Energy Policy, Elsevier, vol. 145(C).
    10. Shao, Yanmin & Chen, Zhongfei, 2022. "Can government subsidies promote the green technology innovation transformation? Evidence from Chinese listed companies," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 716-727.
    11. Xiufeng Zhang & Yan Li & Ke Shi & Yanchao Feng, 2022. "How Do Environmental Technology Standards Affect the Green Transformation? New Evidence from China," IJERPH, MDPI, vol. 19(10), pages 1-16, May.
    12. repec:aen:journl:dn-se-a03 is not listed on IDEAS
    13. Shah, Syed Aamir Ali & Jajja, Muhammad Shakeel Sadiq & Chatha, Kamran Ali & Farooq, Sami, 2020. "Servitization and supply chain integration: An empirical analysis," International Journal of Production Economics, Elsevier, vol. 229(C).
    14. Paul L. Joskow, 2008. "Lessons Learned From Electricity Market Liberalization," The Energy Journal, , vol. 29(2_suppl), pages 9-42, December.
    15. Yuk-shing Cheng & Man-kit Chung & Kam-pui Tsang, 2023. "Electricity Market Reforms for Energy Transition: Lessons from China," Energies, MDPI, vol. 16(2), pages 1-16, January.
    16. Mahendra Singh & Jiao Jiao & Marian Klobasa & Rainer Frietsch, 2022. "Servitization of Energy Sector: Emerging Service Business Models and Startup’s Participation," Energies, MDPI, vol. 15(7), pages 1-20, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wang, Aijia & Mah, Daphne Ngar-yin, 2026. "A systematic review on varieties, effectiveness and determinants of consumer engagement in the context of electricity market reforms from a European-Asian comparative perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 226(PD).
    2. Bustinza, Oscar F. & Opazo-Basaez, Marco & Tarba, Shlomo, 2022. "Exploring the interplay between Smart Manufacturing and KIBS firms in configuring product-service innovation performance," Technovation, Elsevier, vol. 118(C).
    3. Saad Zighan & Moheeb Abualqumboz, 2022. "Dual focus: service-product orientation to manage the change paradox following servitization strategy," Service Business, Springer;Pan-Pacific Business Association, vol. 16(1), pages 29-55, March.
    4. Hao, Xinya & Huang, Yongying & Zhang, Lin, 2025. "High temperature, power rationing, and firm performance," Journal of Development Economics, Elsevier, vol. 176(C).
    5. Lafuente, Esteban & Sallan, Jose M., 2024. "Digitally powered solution delivery: The use of IoT and AI for transitioning towards a solution business model," International Journal of Production Economics, Elsevier, vol. 277(C).
    6. Ornella Benedettini, 2022. "Structuring Servitization-Related Capabilities: A Data-Driven Analysis," Sustainability, MDPI, vol. 14(9), pages 1-20, May.
    7. Ying Wang & Martin Agyemang & Fu Jia, 2021. "Resource Orchestration in Supply Chain Service-Based Business Model: The Case of a Cross-Border E-Commerce Company," Sustainability, MDPI, vol. 13(21), pages 1-24, October.
    8. Jovanovic, Marin & Raja, Jawwad Z. & Visnjic, Ivanka & Wiengarten, Frank, 2019. "Paths to service capability development for servitization: Examining an internal service ecosystem," Journal of Business Research, Elsevier, vol. 104(C), pages 472-485.
    9. Yongtao Peng & Jiawei Sun & Yanchao Hou, 2025. "Investigating data value co-creation in the digital servitization ecosystem: An evolutionary game perspective," Electronic Markets, Springer;IIM University of St. Gallen, vol. 35(1), pages 1-24, December.
    10. Baosheng Ye & Antao Hu & Zhengang Zhang & Yichen Kang, 2025. "Unlocking the potential of digital transformation in manufacturing firms: the importance of technology-strategy fit and resource integration for service enhancement," Asian Business & Management, Palgrave Macmillan, vol. 24(4), pages 652-684, September.
    11. Wim Coreynen & Arjen van Witteloostuijn & Johanna Vanderstraeten, 2021. "Toward Servitized Research: An Integrated Approach for Sustainable Product-Service Innovation," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    12. Paolo Gaiardelli & Giuditta Pezzotta & Alice Rondini & David Romero & Farnaz Jarrahi & Marco Bertoni & Stefan Wiesner & Thorsten Wuest & Tobias Larsson & Mohamed Zaki & Philipp Jussen & Xavier Boucher, 2021. "Product-service systems evolution in the era of Industry 4.0," Service Business, Springer;Pan-Pacific Business Association, vol. 15(1), pages 177-207, March.
    13. Yuli Liu & Mingyi Shang & Jianwei Xu & Lei Zhang & Honglian Hua, 2023. "Value Chain and the Integrated Development of Manufacturing and Modernized Services: A Case Study of Shandong Province, China," Sustainability, MDPI, vol. 15(2), pages 1-25, January.
    14. Dalenogare, Lucas Santos & Le Dain, Marie-Anne & Benitez, Guilherme B. & Ayala, Néstor F. & Frank, Alejandro G., 2022. "Multichannel digital service delivery and service ecosystems: The role of data integration within Smart Product-Service Systems," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    15. Huang, Siwan & Shi, Jianheng & Wang, Baoyue & An, Na & Li, Li & Hou, Xuebing & Wang, Chunsen & Zhang, Xiandong & Wang, Kai & Li, Huilin & Zhang, Sui & Zhong, Ming, 2024. "A hybrid framework for day-ahead electricity spot-price forecasting: A case study in China," Applied Energy, Elsevier, vol. 373(C).
    16. Li, Jinghua & Wang, Hongwei & Qu, Qingyun & Zhu, Jiantao & Wang, Jiexiang, 2024. "Actors’ interactions in the evolution of service supply networks of manufacturing firms," International Journal of Production Economics, Elsevier, vol. 272(C).
    17. Yu Zhang & Yajuan Wang & Yao Li, 2021. "Facilitating Servitization in Manufacturing Firms: The Influence of Strategic Orientation," Sustainability, MDPI, vol. 13(24), pages 1-20, December.
    18. Aquilante, Tommaso & Vendrell-Herrero, Ferran, 2021. "Bundling and exporting: Evidence from German SMEs," Journal of Business Research, Elsevier, vol. 132(C), pages 32-44.
    19. Zhou, Dan & Yan, Tingting & Zhao, Lilong & Guo, Jingjing, 2020. "Performance implications of servitization: Does a Manufacturer's service supply network matter?," International Journal of Production Economics, Elsevier, vol. 219(C), pages 31-42.
    20. Alberto de la Calle & Inmaculada Freije & Aitor Oyarbide, 2021. "Digital Product–Service Innovation and Sustainability: A Multiple-Case Study in the Capital Goods Industry," Sustainability, MDPI, vol. 13(11), pages 1-29, June.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:gam:jsusta:v:16:y:2024:i:20:p:9064-:d:1502236. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.