Service Business

, Volume 9, Issue 3, pp 445–462

Organizational empowerment and service strategy in manufacturing

  • Yuanqiong He
  • Hongyi Sun
  • Kin Keung Lai
  • Yun Chen
Empirical article

DOI: 10.1007/s11628-014-0233-2

Cite this article as:
He, Y., Sun, H., Lai, K.K. et al. Serv Bus (2015) 9: 445. doi:10.1007/s11628-014-0233-2

Abstract

Organizational adaptation is important and necessary for manufacturing firms with an extended service business, because providing service requires a different business logic than that needed in managing a manufacturing system. This study examined the relationships between organizational empowerment, service strategy, and business performance by analyzing global data from the fifth round of International Manufacturing Strategy Survey. The results indicated that the service strategies of manufacturers were positively related to business performance in both high- and low-intensity competition environments. Organizational empowerment was significantly associated with service strategy, and technological change played a positive moderating role between them. This study contributes to the literature by exploring the role of organizational empowerment in the service strategies of manufacturing firms.

Keywords

Organizational empowermentService strategyManufacturingBusiness performanceTechnological change

Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  • Yuanqiong He
    • 1
  • Hongyi Sun
    • 2
  • Kin Keung Lai
    • 3
  • Yun Chen
    • 4
  1. 1.School of ManagementHuazhong University of Science and TechnologyWuhanChina
  2. 2.Department of Systems Engineering and Engineering ManagementCity University of Hong KongHong KongChina
  3. 3.College of BusinessCity University of Hong KongHong KongChina
  4. 4.School of Business AdministrationHubei University of EconomicsWuhanChina