IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i19p8756-d1761199.html
   My bibliography  Save this article

Exploring the Impact of Servitization and Digitalization on Firm Competitiveness and Performance: The Moderating Role of Government Support

Author

Listed:
  • Hendri Ginting

    (Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia)

  • Hamidah Nayati Utami

    (Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia)

  • Riyadi Riyadi

    (Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia)

  • Benny Hutahayan

    (Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia)

Abstract

In the rapidly evolving global business landscape, servitization and digitalization have emerged as key strategies for enhancing firm competitiveness and performance. This study examines their impact, along with the moderating role of government support, in the Indonesian shipping industry. Drawing on the resource-based view (RBV), servitization and digitalization are conceptualized as internal drivers of performance, while Resource Dependence Theory (RDT) positions government support as an external factor that reduces environmental uncertainty and strengthens these relationships. Using data from 345 shipping companies, analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM), the results show that both servitization and digitalization positively affect competitiveness and performance. Furthermore, government support significantly enhances these effects by providing resources such as infrastructure and financial incentives, facilitating the adoption of digital strategies and service-based models. Beyond firm outcomes, these transformations align with broader sustainability objectives by improving resource efficiency, reducing waste and delays, and potentially lowering the environmental footprint of logistics activities. This study advances theoretical understanding by demonstrating the central role of external resources—particularly government support—in enabling successful digital and service transformations. For policymakers, the findings emphasize the need for targeted incentives and infrastructure to accelerate industry-specific innovation and sustainability goals. For practitioners, they highlight the importance of aligning strategic initiatives with government policies to maximize the benefits of servitization and digitalization.

Suggested Citation

  • Hendri Ginting & Hamidah Nayati Utami & Riyadi Riyadi & Benny Hutahayan, 2025. "Exploring the Impact of Servitization and Digitalization on Firm Competitiveness and Performance: The Moderating Role of Government Support," Sustainability, MDPI, vol. 17(19), pages 1-28, September.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:19:p:8756-:d:1761199
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/19/8756/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/17/19/8756/
    Download Restriction: no
    ---><---

    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:17:y:2025:i:19:p:8756-:d:1761199. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.