Business hybrid offerings by manufacturing SMEs: impact of servitization on internationalization of manufacturing SMEs

Abstract

PurposeThis study examines the significance of the hybrid offerings of servitization by manufacturing small and medium-sized enterprises (SMEs). This study also examines why and how hybrid offerings matter for manufacturing SMEs. The study also investigates the moderating role of risk-taking ability (RA) and technology turbulence (TT) on manufacturing SMEs' performance.Design/methodology/approachThis study has used literature from the areas of servitization, hybrid offerings and internationalization related to SMEs. Also, with the help of theories and literature, a model has been developed conceptually. This model has been validated using a structural equation modeling (SEM) technique on survey data collected from manufacturing SMEs.FindingsThis study finds the significance of manufacturing SMEs' servitization for internationalization effort. Also, this study highlights the moderating impacts of RA and TT on the performance of manufacturing SMEs.Research limitations/implicationsThis study provides valuable inputs to the management of SMEs, especially practitioners that are involved in formulating strategies for hybrid offerings, including servitization activities for the manufacturing SMEs. This study also contributes to the overall body of literature on hybrid offering and servitization.Originality/valueThe study adds values to the overall body of literature for both servitization and internationalization. This study focuses mainly on the significance of hybrid offerings, including servitization by the manufacturing SMEs. Few studies have dealt with such hybrid offerings by manufacturing SMEs as part of the SMEs' internationalization effort. Thus, this study can be considered unique. Moreover, the study investigates the moderating role of RA and TT for SME performance, which adds value toward the body of knowledge in the extant literature.