Servitization: Its preferred organization and impact on firm performance

This article addresses the performance implication of servitization and the configuration of servitization and organizational characteristics. We propose hypotheses regarding the relation between two types of servitization (basic services vs. advanced services) and firm performance, and how organizations' decision-making features moderate these relations. Hypotheses are tested based on a survey of 931 plants from 22 countries. The results show that the advanced services (ADS) improve market, financial, and operational performance, while the basic services (BAS) only improve market performance. In addition, the positive relation between the ADS and firm performance is stronger in organizations with a participative and decentralized decision-making process.