Impact of Manufacturing Servitization on Factor Productivity of Industrial Sector Using Global Value Chain

The current study estimates the impact of manufacturing servitization on industrial productivity from the perspective of global value chain division. For this purpose, from 2000 to 2014, the study uses the World Input–Output Database (WIOD) to measure the servitization level of China’s manufacturing...

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Bibliographic Details
Published inSustainability Vol. 14; no. 9; p. 5354
Main Author Zhang, Jingxing
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.05.2022
Subjects
Business competition
Competitive advantage
Hypotheses
Industrial development
Information technology
Manufacturing
Manufacturing industry
Multinational corporations
Product life cycle
Productivity
Service industries
Transportation services
Value chain
Value creation
China
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Summary:The current study estimates the impact of manufacturing servitization on industrial productivity from the perspective of global value chain division. For this purpose, from 2000 to 2014, the study uses the World Input–Output Database (WIOD) to measure the servitization level of China’s manufacturing industry based on the non-competitive input–output model. Moreover, it develops a unified framework of source and structural differences in service factors and explores the mechanism and impact of manufacturing servitization on industrial productivity from the perspective of global value chain division. The results showed that if the division status of the manufacturing industry in the global value chain is higher, there will be a higher productivity effect of servitization. Regarding service factor country difference, foreign service factor input positively strengthened the industrial productivity effect, whereas domestic service factor input had no obvious effect on industry productivity. Furthermore, it was found that distribution and transportation services do not play a significant role in promoting industry productivity, whereas modern service factors such as information technology, finance, and business services have significant driving effects on industry productivity. The study suggests optimizing the layout of the industrial chain and improving the servitization of the manufacturing industry.
ISSN:2071-1050
2071-1050
DOI:10.3390/su14095354