Abstract

There is fierce conflict between theoretical research of servitization which has high potential for manufacturing companies to build sustainable competitive advantages and the practice of manufacturing companies which invest a lot in servitization without getting the expected benefit. This study aimed at filling the aforementioned research gap to examine the relationship between servitization and operational performance. In line with the focus of information and knowledge within this study, we also examine the moderating effect of cross-function integration. Based on the IMSS-IV database, we test these relationships. The results showed the following: (1) The result suggests that service support products has a positive impact on operational performance while the relationship between service support clients’ actions and operational performance is U-shaped; (2) the relationship between two types of service and operational performance is not moderated by cross-function integration. This study contributes to the current literature and practice on servitization and cross-function integration.

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