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The impact of digitalization and servitization on the financial performance of a firm: An empirical analysis

Abou-foul, Mohamad; Ruiz-Alba, Jos� L.; Soares, Anabela

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Authors

Mohamad Abou-foul

Jos� L. Ruiz-Alba



Abstract

Manufacturing firms have vigorously pursued opportunities for profitability and growth through servitization and digitalization processes. However, the current body of research provides contradictory results on the impact of servitization and digitalization on firm financial performance. This paper seeks to address how manufacturing companies can turn technology into business process transformation. To address this gap this paper develops and tests a framework for assessing the impact of servitization and digitalization on firm financial performance. This study analyses a survey of 185 U.S. and European manufacturing firms showing empirical evidence that digitalization and servitization had a direct positive effect on a firm’s financial performance. This research gives managers some insights to better understand the digital transformation in servitization process. These results also have significant theoretical implications to the servitization literature, since achieving superior bottom-line results is contingent on the integration of the digital and service-specific capabilities that reinvent the nature of an offering.

Citation

Abou-foul, M., Ruiz-Alba, J. L., & Soares, A. (2021). The impact of digitalization and servitization on the financial performance of a firm: An empirical analysis. Production Planning and Control, 32(12), 975-989. https://doi.org/10.1080/09537287.2020.1780508

Journal Article Type Article
Acceptance Date May 7, 2020
Online Publication Date Jun 22, 2020
Publication Date 2021
Deposit Date Apr 21, 2020
Publicly Available Date Mar 29, 2024
Journal Production Planning and Control
Print ISSN 0953-7287
Electronic ISSN 1366-5871
Publisher Taylor & Francis
Peer Reviewed Peer Reviewed
Volume 32
Issue 12
Pages 975-989
DOI https://doi.org/10.1080/09537287.2020.1780508
Keywords Servitization; Digitalization; Firm performance; Structural equation modelling 2
Public URL https://uwe-repository.worktribe.com/output/5872864

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Licence
http://creativecommons.org/licenses/by-nc/4.0/

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http://www.rioxx.net/licenses/all-rights-reserved

Copyright Statement
This is an Accepted Manuscript version of the following article, accepted for publication in Production Planning & Control. [Abou-foul, M., Ruiz-Alba, J. L., & Soares, A. (2021). The impact of digitalization and servitization on the financial performance of a firm: An empirical analysis. Production Planning and Control, 32(12), 975-989. https://doi.org/10.1080/09537287.2020.1780508]. It is deposited under the terms of the Creative Commons Attribution-NonCommercial License (http://creativecommons.org/licenses/by-nc/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited.





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