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Product-Service System and Firm Performance: The Mediating Role of Product and Process Technological Innovation

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  • Yong-Pyo Hong
  • YoungJun Kim
  • Beon Cheol Cin

Abstract

In this study, we examine the effects of product-service system (PSS) practices on firm performance with the help of unique survey data obtained from one of the leading emerging countries. In particular, we explore the mechanisms that explain the link between PSS and firm performance. We propose that a firm’s introduction of PSS is positively associated with the performance of that company in terms of product and process technological innovation. The findings show that PSS influences a firm’s performance through process technological innovation at the company, not through product technological innovation. The results suggest that firms should focus more on developing a new business process or business system in order to leverage the power of PSS.

Suggested Citation

  • Yong-Pyo Hong & YoungJun Kim & Beon Cheol Cin, 2015. "Product-Service System and Firm Performance: The Mediating Role of Product and Process Technological Innovation," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(5), pages 975-984, September.
    • Handle: RePEc:mes:emfitr:v:51:y:2015:i:5:p:975-984
    DOI: 10.1080/1540496X.2015.1061388
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    Cited by:

    1. David Hidalgo-Carvajal & Ruth Carrasco-Gallego & Gustavo Morales-Alonso, 2021. "From Goods to Services and from Linear to Circular: The Role of Servitization’s Challenges and Drivers in the Shifting Process," Sustainability, MDPI, vol. 13(8), pages 1-26, April.
    2. Heira Georgina Valdez-Bocanegra & Gonzalo Maldonado-Guzmán & Ricardo Valdez-González, 2020. "Effects of Innovation on Competitiveness and Performance: Empirical Evidence in the State of Guanajuato in Mexico," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(3), pages 1-4.
    3. 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).
    4. Nohora Mercado-Caruso & Marival Segarra-Oña & David Ovallos-Gazabon & Angel Peiró-Signes, 2020. "Identifying Endogenous and Exogenous Indicators to Measure Eco-Innovation within Clusters," Sustainability, MDPI, vol. 12(15), pages 1-20, July.
    5. Andrea Tenucci & Enrico Supino, 2020. "Exploring the relationship between product-service system and profitability," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 24(3), pages 563-585, September.

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