Study On The Relationship Between Innovation And Performance In Manufacturing Servitization

With the development of economic globalization, China’s manufacturing industry is facing increasingly fierce competition, therefore, manufacturing enterprises need to find new competitive advantages to improve their overall strength. At present, China’s manufacturing enterprises began to focus on service delivery by providing personalized services to enhance enterprise value. However, generally speaking, the current level of service is low and there is a big gap with the developed countries. Therefore, this paper will carry out the research in Chinese context.service-oriented manufacturing enterprises is an innovative behavior. It is an essential problem to choose what kind of service innovation behavior and how to match service innovation and service strategies effectively at the present stage."Service" is a new force which exist certain risks for manufacturing enterprises, therefore, it is quite intense to demand the legitimacy. In order to make sure service-oriented manufacturing enterprises realize smoothly, enterprises need to implement appropriate systems for getting the legitimacy of its new organizational identity, behavior patterns and values to get to be recognized by the internal or external organization environment.In response to these problems, the paper did the research about the problems in service-oriented manufacturing enterprises by using questionnaire survey and other methods. It mainly including the relation between service innovation and performance, the matching relation between service innovation and service strategy and the regulating effect of legitimacy about the relation between service innovation and performance. We derived the final result through model specification, and hypothesizing and verification. A total of212usable questionnaires were retumed(all of them were Chinese manufacturing enterprises), and we carried out the empirical analysis by using SPSS17.0and LISREL. The results are as follows:First of all, service innovation has the galvanizing impact on business performance in the process of service-oriented manufacturing enterprise. Both the exploration and exploitation that are two types of service innovation in this paper are able to improve business performance.Second, the study verifies the matching relation between the two tapes of service innovation model and service strategy. Service strategy here refers to the service of support product (SSP) and service of support customer (SSC). This study reaches some conclusions by empirical analysis:In the context of service-oriented manufacturing enterprises, exploration has a stronger impact on business performance than exploitation in SSP service strategy. On the contrary, exploitation has a stronger impact on business performance than exploration in SSC service strategy.Third, the study proves the regulating effect of legitimacy in the process of service-oriented manufacturing enterprise. The results mainly show that the higher the degree of organizational legitimacy is, the stronger positive correlation between innovation and organizational performance is.The main purpose of this paper is to give manufacturing enterprises which are ongoing service transformation some inspiration on management and lead them transform successfully.