TY - JOUR
T1 - Servitization and organizational resilience of manufacturing firms
T2 - Evidence from the COVID-19 outbreak
AU - Li, Huashan
AU - Pournader, Mehrdokht
AU - Fahimnia, Behnam
N1 - Publisher Copyright:
© 2022 Elsevier B.V.
PY - 2022/8
Y1 - 2022/8
N2 - This study examines how service-oriented business model diversification of manufacturing firms (i.e., servitization) has affected their organizational resilience during the COVID-19 outbreak. We investigate the impact of two types of servitization – product-oriented vs. customer-oriented services – on organizational resilience. Using secondary data collected from 1,914 manufacturing firms listed in the US stock markets, we find that servitization is inversely related to organizational resilience during the COVID-19 disruption; that is, manufacturing firms with more revenue from service businesses endure more significant stock price loss and take longer to bounce back from the loss caused by the COVID-19 disruption. The impact is more pronounced for manufacturing firms providing product-oriented services (than those providing customer-oriented services). This study extends the understanding of the dark side of servitization relating to organizational resilience during a major disruption.
AB - This study examines how service-oriented business model diversification of manufacturing firms (i.e., servitization) has affected their organizational resilience during the COVID-19 outbreak. We investigate the impact of two types of servitization – product-oriented vs. customer-oriented services – on organizational resilience. Using secondary data collected from 1,914 manufacturing firms listed in the US stock markets, we find that servitization is inversely related to organizational resilience during the COVID-19 disruption; that is, manufacturing firms with more revenue from service businesses endure more significant stock price loss and take longer to bounce back from the loss caused by the COVID-19 disruption. The impact is more pronounced for manufacturing firms providing product-oriented services (than those providing customer-oriented services). This study extends the understanding of the dark side of servitization relating to organizational resilience during a major disruption.
KW - COVID-19
KW - Disruption
KW - Manufacturing
KW - Organizational resilience
KW - Servitization
KW - United States
UR - http://www.scopus.com/inward/record.url?scp=85141455305&partnerID=8YFLogxK
U2 - 10.1016/j.ijpe.2022.108685
DO - 10.1016/j.ijpe.2022.108685
M3 - Article
AN - SCOPUS:85141455305
SN - 0925-5273
VL - 250
JO - International Journal of Production Economics
JF - International Journal of Production Economics
M1 - 108685
ER -