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Can Servitization Strategy Improve Corporate Environmental, Social, and Governance (ESG) Performance? Empirical Evidence From Listed Manufacturing Enterprises in China

Author

Listed:
  • Hailin Dong
  • Juhong Chen
  • Le Zhang

Abstract

At present, utilizing servitization to enhance the ESG performance of manufacturing enterprises is an important strategic path for achieving carbon reduction and sustainable development in the manufacturing industry. Using ordinary least squares (OLS) regression and a sample of A‐share listed manufacturing companies from 2010 to 2022, this paper investigates the impact of servitization on ESG performance and its mechanism, based on the theory of service‐dominant logic. We find that servitization of manufacturing enterprises is conducive to improving ESG performance. Mechanism testing suggests that servitization improves corporate ESG performance by leveraging innovation‐driven effects and resource allocation effects. Heterogeneity analysis reveals that the impact of servitization on ESG performance is more significant in high‐pollution, high‐technology, and growing enterprises. Our findings enrich theoretical studies on servitization and provide new insights for enhancing manufacturing enterprises’ ESG performance and promoting green and high‐quality development in the manufacturing industry.

Suggested Citation

  • Hailin Dong & Juhong Chen & Le Zhang, 2025. "Can Servitization Strategy Improve Corporate Environmental, Social, and Governance (ESG) Performance? Empirical Evidence From Listed Manufacturing Enterprises in China," Discrete Dynamics in Nature and Society, John Wiley & Sons, vol. 2025(1).
    • Handle: RePEc:wly:jnddns:v:2025:y:2025:i:1:n:8847322
    DOI: 10.1155/ddns/8847322
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