Tingting Yan to be published in International Journal of Production Economics

Tingting Yan, associate professor of supply chain management at the Mike Ilitch School of Business, had a recent article titled "Performance Implications of Servitization: Does a Manufacturer's Service Supply Network Matter?" accepted for publication in the International Journal of Production Economics. IJPE is an A journal that focuses on topics treating the interface between engineering and management.

Yan co-authored the paper with Dan Zhou, a visiting scholar at the Ilitch School, Lilong Zhao and Jingjing Guo.

Abstract

To clarify the puzzling performance implications of servitization for manufacturers, this study examines how a manufacturer's service supply network moderates the non-linear performance effect of servitization. We test the hypotheses using survey responses collected from 143 servitized manufacturers in China. Our three-step statistical test confirms that servitization has a U-shaped relationship with the manufacturer's financial performance. We also find partial support for the moderating roles of the service supply network, characterized by tiestrength and structural holes. Specifically, we show that stronger ties between a manufacturer and major service suppliers intensify the U-shaped servitization-performance relationship. However, we do not find support for a moderating effect of service network structural hole, despite of its direct negative effect on manufacturer financial performance. By bridging the servitization and supply network literature, this study reveals novel findings that could help manufacturers understand how to leverage their service supplier networks for increasing the financial return from their servitization endeavors.