How Does Service Innovation Enhance Financial Performance in Manufacturing Enterprises?: Evidence from China

The precise relationship between service innovation and financial outcomes in this context remains ambiguous. This study examines the extent to which service innovation contributes to financial outcomes, analyzing data from 512 manufacturing companies across China from 1993 to 2017, sourced from the...

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Main Authors: Shuie Sun, Zhenfeng Cheng
Format: Article
Language:English
Published: Wiley 2024-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2024/7325642
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author Shuie Sun
Zhenfeng Cheng
author_facet Shuie Sun
Zhenfeng Cheng
author_sort Shuie Sun
collection DOAJ
description The precise relationship between service innovation and financial outcomes in this context remains ambiguous. This study examines the extent to which service innovation contributes to financial outcomes, analyzing data from 512 manufacturing companies across China from 1993 to 2017, sourced from the CSMAR database. Utilizing OLS regression and fixed effects model method, we identify a positive nonlinear correlation between service innovation and financial performance, highlighting a “service dilemma” that varies between state-owned and private enterprises, which follows a “saddle-type” pattern. In addition, the impact of service innovation shows considerable variation across different industries. This research provides critical insights into optimizing financial performance through strategic service innovation across various types of enterprises and industries. It underscores the importance of tailored industrial strategies and equitable competition in enhancing service innovation. The study’s extensive sample size and its focus on the heterogeneity among enterprise types and industries mark its key contributions to understand service innovation’s role in financial performance.
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institution Kabale University
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series Discrete Dynamics in Nature and Society
spelling doaj-art-ea09bd1ea95d442682956afce10795bd2025-08-20T03:26:35ZengWileyDiscrete Dynamics in Nature and Society1607-887X2024-01-01202410.1155/2024/7325642How Does Service Innovation Enhance Financial Performance in Manufacturing Enterprises?: Evidence from ChinaShuie Sun0Zhenfeng Cheng1Business SchoolBusiness SchoolThe precise relationship between service innovation and financial outcomes in this context remains ambiguous. This study examines the extent to which service innovation contributes to financial outcomes, analyzing data from 512 manufacturing companies across China from 1993 to 2017, sourced from the CSMAR database. Utilizing OLS regression and fixed effects model method, we identify a positive nonlinear correlation between service innovation and financial performance, highlighting a “service dilemma” that varies between state-owned and private enterprises, which follows a “saddle-type” pattern. In addition, the impact of service innovation shows considerable variation across different industries. This research provides critical insights into optimizing financial performance through strategic service innovation across various types of enterprises and industries. It underscores the importance of tailored industrial strategies and equitable competition in enhancing service innovation. The study’s extensive sample size and its focus on the heterogeneity among enterprise types and industries mark its key contributions to understand service innovation’s role in financial performance.http://dx.doi.org/10.1155/2024/7325642
spellingShingle Shuie Sun
Zhenfeng Cheng
How Does Service Innovation Enhance Financial Performance in Manufacturing Enterprises?: Evidence from China
Discrete Dynamics in Nature and Society
title How Does Service Innovation Enhance Financial Performance in Manufacturing Enterprises?: Evidence from China
title_full How Does Service Innovation Enhance Financial Performance in Manufacturing Enterprises?: Evidence from China
title_fullStr How Does Service Innovation Enhance Financial Performance in Manufacturing Enterprises?: Evidence from China
title_full_unstemmed How Does Service Innovation Enhance Financial Performance in Manufacturing Enterprises?: Evidence from China
title_short How Does Service Innovation Enhance Financial Performance in Manufacturing Enterprises?: Evidence from China
title_sort how does service innovation enhance financial performance in manufacturing enterprises evidence from china
url http://dx.doi.org/10.1155/2024/7325642
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AT zhenfengcheng howdoesserviceinnovationenhancefinancialperformanceinmanufacturingenterprisesevidencefromchina