Institutional Pressures and Servitization Paradox: The Moderating Effect of Organizational Identity Orientations

Hui Wang; Xiaojing Lu; Chaping Hu; Haijun Wang

doi:10.3389/fpsyg.2022.901732

Institutional Pressures and Servitization Paradox: The Moderating Effect of Organizational Identity Orientations

Front Psychol. 2022 Jun 30:13:901732. doi: 10.3389/fpsyg.2022.901732. eCollection 2022.

Authors

Hui Wang¹, Xiaojing Lu², Chaping Hu³, Haijun Wang¹

Affiliations

¹ Center for Brand and Advertising Research, School of Media and Communication, Wuhan Textile University, Wuhan, China.
² Department of Marketing, School of Business Administration, Jimei University, Xiamen, China.
³ Department of Marketing, School of Politics and Economic Management, Guizhou Minzu University, Guiyang, China.

Abstract

It is believed in many studies that the servitization of manufactures is driven by internal economy, but the situation in China may be somewhat different. In this study, we consider the influence of external institutional environment on manufacturers' servitization and the final performance, and discuss the moderating effect of organizational identity orientation on firms' response to external institutional pressures. We conduct a survey where we collect responses from 312 manufacturers in China. Regression analyses are performed to test whether institutional pressures (normative pressure, mimetic pressure, and coercive pressure) coming from the external institutional environment have a positive effect on the level of manufacturing servitization or not. Moreover, we study if this positive effect is moderated by the individualistic identity orientation and the relational identity orientation. We also examine the impact of servitization strategy on manufacture's market performance and financial performances. Furthermore, we separate out the influences comes from institutional pressures by using a new estimated method and try to explain the cause of "servitization paradox." Our study is innovative in that it bridges the servitization and institutional theory, and provides practical guidance for the adoption of manufacturing servitization strategy.

Keywords: enterprise’s performances; institutional pressures; manufacturing servatization; organizational identity orientations; servitization paradox.