Digital Servitization and Firm Performance: Technology Intensity Approach

Abstract

Digital servitization provides radical changes in the offer of products from manufacturing firms. The purpose of this paper is to investigate the impact of digital servitization on manufacturing firm performance and demonstrate the role of technology intensity, product-related services, and digital solutions in different industry sectors. This research collected data from 240 manufacturing firms from the Republic of Serbia under the European manufacturing survey from 2018. Multivariate regression analysis was used to test the impact of product-related services and digital solutions on manufacturing firm performance according to technology intensity. The findings show that the impact of digital servitization is more significant with the higher technology intensity level of the industry sector. Furthermore, the results show that Data-based services based on Big Data Analysis have the highest impact on manufacturing firm performance in all categories of technology intensity. Moreover, results from the fixed panel regression show production managers which combination of product-related services along with digital solutions make the highest financial performance according to the technology intensity of the firm.