Financial performance of servitized manufacturing firms: a configuration issue between servitization strategies and customer-oriented organizational design

The literature posits a positive relationship between servitization and financial performance. However, empirical evidence is inconclusive and notes the enabling role of organization. To contribute to this topic, this work first advocates for a new approach to define the servitization strategy of manufacturing firms based on the nature of their offerings and their impact on the provider-customer relationships. Three categories of strategy are suggested: added services-AS, activities reconfiguration-AR, and business model reconfiguration-BMR. Then, a general framework posits that financial performance stems from the adoption of specific COOD configurations depending on the servitization strategy adopted. Three dimensions of COOD are considered: service culture-SC, customer interface-CI and service delivery system-SDS. Based on a study involving 184 manufacturing firms, the research model provides quantitative support for driver configurations that increase financial performance. The results from both structural equation models and qualitative comparative analysis (fsQCA) confirm that all servitization strategies can lead to increased performance, but only with specific COOD configurations. The findings provide stimulating managerial implications: a company implementing an AS strategy has no incentive to invest in a complex COOD; firms adopting an AR strategy should focus largely on their SDS; and firms choosing a BMR strategy must develop a robust SC.