Servitization and Sustainable Value Creation Strategy for China’s Manufacturing Industry: A Multiple Case Study in the Belt and Road Initiative

Abstract

Manufacturers are adding service offerings to satisfy customers’ needs in various markets. Effective strategies for servitization can improve the competitiveness of manufacturers during cooperation. The Belt and Road Initiative (BRI) established by China offers opportunities for economic cooperation and regional integration for the involved countries. Now, many manufacturing firms are expanding their businesses into Belt and Road countries, most firms are facing the “how to do” problems in improving sustainability during their cooperation. They urgently require methodical assistance on both improving competitiveness through servitization and addressing sustainability challenges. This necessitates the firms to develop successful service models for their industrial initiatives and investigate ways to produce long-term sustainable value through services. In addition to the firm’s economic worth, it also entails lowering the project’s negative environmental impact. The results provided effective strategies for manufacturers from two perspectives. The first perspective is the study discovered innovative service models at both the product and project levels. Project-service systems are critical, and manufacturing firms should use innovative service models to deliver projects. The operation method of holistic solution and localization integration project service was addressed in particular in this study. In the second perspective, there are suggestions for achieving sustainability through innovative service models. The methods for preserving sustainable value on the industrial project level were the subject of our study, which included significant criteria and detailed descriptions. The effective project service system should bring sustainable value to the lifespan of an industrial project. This study has determined four major paths to improving sustainable value creation through servitization: improving resource allocation capabilities, reduce carbon emissions through energy project service, technological outputs, and standards exportation. Useful recommendations are provided for manufacturing firms planning to develop their business overseas, especially in BRI countries.

Enhancing green total factor productivity through manufacturing output servitization: A case study in China

“…In summary, the previous literature has emphasized the importance of studying the relationship between manufacturing servitization and economic or environmental benefits, as well as the mechanisms underlying this relationship [ 30 , 31 ]. However, the implementation of manufacturing output servitization in many countries, including China, faces challenges that require the application of policy support, technological innovation, and collaboration among stakeholders [ 32 ]. Furthermore, balancing economic benefits with environmental benefits is extremely important.…”

Identifying the Value Co-Creation Model and Upgrading Path of Manufacturing Enterprises from the Value Network Perspective

“…Different degrees of servitization will lead to different service values created by enterprises, and value co-creation methods also differ greatly; thus, the degree of servitization is a key driving factor of sustainability in value network. Yuan Chang presented several strategies for servitization, as well as the discovery and classification of effective service models at both the product and project levels, and offered a few insights into sustainable value creation from the perspective of service innovation [8]. Combining the sustainability characteristics of servitization, the degree of servitization is included in the value co-creation consideration.…”

“…The value output type of manufacturing value co-creation has changed from service value to a mixture of service and tangible product value, resulting in changes in the value contribution of different value co-creation participants, a gradual decrease in the role of consumers or customers, a mismatch between the value co-creation model based on service-dominant logic and practice, and increasing complexity [7], which requires equal emphasis on a new service-dominant logic and product-led logic. Therefore, the new sustainable value co-creation models which can integrate new service-dominant logic and product-led logic are needed to be explored in line with the development of the times to ensure sustainable development [8].…”

Development and Future Trends of Digital Product-Service Systems: A Bibliometric Analysis Approach

“…Firms must identify their maturity level for adopting digital PSS in order to endure these challenges [35]. Firms must develop technical, organizational, and integrative approaches in order to guarantee a sufficient maturity level for the application of digital PSS ideas [36,37]. In order to generate value through smart services, smart goods and the environments in which they operate certain technological standards must adhere to the principles of [38].…”

“…(i.e., digital take-back services, predictive maintenance, etc.) [36,37]. Last but not least, resilience services represent services that have digital components designed to withstand environmental effect (e.g., COVID-19.…”