Research On The Collaborative Relationship Between Product Innovation And Service Transformation In Manufacturing Enterprises

Product innovation focuses on the upstream of the value chain,emphasizing the improvement or creation of product quality and function,which is the main driver of value creation for traditional manufacturing enterprises;however,with the serious homogenization of products,more intense market competition and more variable and complex customer demands,it has become imperative for manufacturing enterprises to innovate their development mode and strategically transform and upgrade.Service transformation focuses on the downstream of the value chain,guiding and supporting manufacturing enterprises to extend the value chain,so as to improve customer stickiness and product added value,and become the key to enhance the competitiveness of manufacturing enterprises.In actual development,more and more enterprises are promoting both product innovation and service transformation strategies,creating value through integrated solutions of products and services,expecting to achieve synergistic development of both.As two major strategic activities of manufacturing enterprises,product innovation and service transformation are both complementary to each other and prone to resource conflicts,which are constrained by the existing resources and capabilities of enterprises.According to the strategic consistency theory,in the process of resource allocation,it is mainly influenced by the market environment and the enterprise’s resource capability.External opportunity identification and internal resource conditions are the two core elements that affect its success or failure,so this thesis introduces two important condition variables,market environment and resource redundancy.Based on the above analysis,this thesis takes the study of the relationship between product innovation and service transformation as the core issue,and on the basis of proving the relationship between product innovation,service transformation and enterprise performance,explores the influence of the synergy between the two on enterprise performance,and proves the moderating role of market environment(dynamicity and appropriateness)and resource redundancy(absorbed redundancy and unabsorbed redundancy)in the core issue;and further studies service transformation,product We further investigate how the combination of service transformation,product innovation,external market environment,and internal resource redundancy can contribute to the improvement of firm performance.Based on the framework of "environment-firm resource conditions-strategy choice",this thesis uses the panel data of Chinese listed manufacturing firms and employs systematic GMM and fuzzy set qualitative comparative analysis methods to empirically analyze the collected data;the complex synergy between product innovation and service transformation that affects firm performance is carefully studied.The empirical results show that:(1)there is an inverted U-shaped relationship between product innovation and firm performance;there is a U-shaped relationship between service transformation and firm performance;there is a U-shaped relationship with firm performance when product R&D innovation is invested in a given strength and deployed jointly with service transformation.(2)There are moderating effects of market environment and resource redundancy between product innovation,service transformation and firm performance.(3)Manufacturing firms can achieve high performance through four paths.(4)There is a substitution effect between product innovation and service transformation,and product innovation is still the main driver of value creation in manufacturing enterprises;product innovation and service transformation are synergistic,and when the market environment is suitable,the high level of absorbed redundancy and unabsorbed redundancy of enterprises can promote the synergistic development of the two activities;when the market environment is highly dynamic,"product + service" is the best way to extend the value chain.Service" is an effective way to enhance the competitiveness of enterprises,and it is crucial for enterprises to make full use of unabsorbed redundancy resources at this time.This thesis reveals the synergistic relationship between product innovation and service transformation,and explains the role of market environment and resource redundancy to provide insights for enterprises’ transformation and upgrading,strategic choice and rational resource allocation.