Leveraging digitalization and servitization to improve financial performance

Yang, Zhibo; Zhang, Yufeng; Zhang, Tao

doi:10.1080/09537287.2023.2229263

Cited by 8 publications

(4 citation statements)

References 115 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Third, we found that digital transformation is related to both operational and financial performance. This finding is in line with many studies in the literature examining the relationship between digital transformation and firm performance [22,77,81,103]. However, there is no agreed decision on this issue.…”

Section: Discussionsupporting

confidence: 87%

“…The main aim of firms to invest in digital technologies and start a digital transformation process is to adapt to new trends in the market, increase productivity, gain competitive advantage, have sustainable practices, and make more profit. The use of digital technologies provides many benefits to firms such as reducing costs, increasing productivity, fostering innovation, supporting sustainable operations, and improving ways to capture value [80,81]. Moreover, since they contribute to increasing organizational exploration and creativity, they can improve the capabilities of businesses at a level that makes a difference in the market [82].…”

Section: Digital Transformation and Firm Performancementioning

confidence: 99%

See 1 more Smart Citation

Effect of Digital Transformation on Firm Performance in the Uncertain Environment: Transformational Leadership and Employee Self-Efficacy as Antecedents of Digital Transformation

Gun,

Imamoglu,

Turkcan

et al. 2024

Sustainability

View full text Add to dashboard Cite

As the functioning of firms has been changing, the digital transformation process is becoming inevitable for all firms. Therefore, scholars and managers pay great attention to this topic. However, there are still significant gaps about its human-related antecedents, and existing studies on its effects on firm outcomes have presented contradictory findings. By addressing these gaps in the literature, this study examines the effect of transformational leadership and employee self-efficacy as human-related antecedents of digital transformation and also its impact on firm performance. Data were collected from 305 participants who are managers in the manufacturing sector. The findings indicate that both transformational leadership and employee self-efficacy are positively related to digital transformation. Results also reveal that digital transformation is associated with operational and financial performance, and that environmental uncertainty strengthens its relationship with financial performance. This research, therefore, contributes to digital transformation literature, deepens the current knowledge, and offers novel and comprehensive insight, by addressing the gaps in the literature.

show abstract

Section: Discussionsupporting

confidence: 87%

Section: Digital Transformation and Firm Performancementioning

confidence: 99%

Effect of Digital Transformation on Firm Performance in the Uncertain Environment: Transformational Leadership and Employee Self-Efficacy as Antecedents of Digital Transformation

Gun,

Imamoglu,

Turkcan

et al. 2024

Sustainability

View full text Add to dashboard Cite

show abstract

“…Research has shown that digital orientation is positively related to financial performance, and accounting information systems (AIS) act as a mediator in this relationship [23]. In addition, digital innovation plays a moderating role in the relationship between digital orientation and financial performance [24]. Servitization partially mediates the relationship between digitalization and financial performance, with the effect moderated by the transformation context [25].…”

Section: Previous Studies On Digitalization and Profitabilitymentioning

confidence: 99%

Analysis of the Effect of Digitalization on the Profitability of Telecommunication Companies in Indonesia

Judijanto,

Wahyudi,

Surya

2024

WSBM

View full text Add to dashboard Cite

This research investigates the relationship between digitalization components and the profitability of telecommunication companies in Indonesia through quantitative analysis employing survey methods. In the rapidly evolving landscape of the telecommunication industry, digitalization plays a pivotal role in shaping operational strategies and driving financial performance. The study employs a structured questionnaire administered to key stakeholders within Indonesian telecommunication firms, with statistical analysis techniques, including Structural Equation Modeling with Partial Least Squares (SEM-PLS), used to analyze the data. The findings reveal significant positive relationships between digitalization components—network infrastructure, digital services, customer experience, and operational efficiency—and profitability indicators. These results underscore the strategic importance of digital transformation initiatives in enhancing the profitability of telecommunication companies in Indonesia, providing valuable insights for industry practitioners, policymakers, and researchers.

show abstract

“…Previous research has started to recognize the convergence of digitization and servitization. Most studies in this field focused on the direct relationships between digitization and servitization, such as servitization promotes digitization (Martin-Pena et al, 2020) and digitization facilitates servitization (Abou-foul et al, 2020;Davies et al, 2023;Yang et al, 2023). Other studies have explored how servitization contributes to the impact digitization has on financial performance (Kohtam€ aki et al, 2020) and the interactive effects of digitization and service types on performance (Zhou et al, 2020).…”

Section: Theoretical Contributionsmentioning

confidence: 99%

Financial performance response of manufacturers to servitization: curvilinear relationship mediated by service business focus and moderated by digital technology application

Liu,

Li,

2024

JSTP

View full text Add to dashboard Cite

PurposeServitization of products is becoming increasingly prevalent among manufacturing enterprises. Existing research has primarily focused on exploring whether the direct impact of servitization on manufacturer performance follows a linear or a curvilinear relationship. However, the understanding of the underlying mechanisms between servitization and manufacturer financial performance remains limited. This paper aims to examine the non-linear relationship between servitization and manufacturer performance as well as the mediating process and boundary condition associated with this relationship.Design/methodology/approachDrawing on resource-advantage theory, this paper proposes a theoretical model of the U-shaped relationship between servitization and the financial performance of equipment manufacturers. Panel data of 248 listed equipment manufacturers in China during the period of 2010–2020 are used to test each hypothesis through the ordinary least square method.FindingsThe empirical results indicate that servitization follows a U-shaped relationship with service business focus and the financial performance of equipment manufacturers. Service business focus mediates this U-shaped relationship between servitization and financial performance, and digital technology application moderates this relationship.Originality/valueThis paper pioneers the unraveling of the potential mechanism that can explain the curvilinear relationship between servitization of manufacturers and financial performance. This mechanism is the focus of the service business, which is theoretically delineated and empirically tested. Furthermore, digital technology application enables manufacturers to achieve service business focus more effectively in the process of servitization. Thus, this study addresses the call for research on digital servitization.

show abstract

Leveraging digitalization and servitization to improve financial performance

Cited by 8 publications

References 115 publications

Effect of Digital Transformation on Firm Performance in the Uncertain Environment: Transformational Leadership and Employee Self-Efficacy as Antecedents of Digital Transformation

Effect of Digital Transformation on Firm Performance in the Uncertain Environment: Transformational Leadership and Employee Self-Efficacy as Antecedents of Digital Transformation

Analysis of the Effect of Digitalization on the Profitability of Telecommunication Companies in Indonesia

Financial performance response of manufacturers to servitization: curvilinear relationship mediated by service business focus and moderated by digital technology application

Contact Info

Product

Resources

About