The role of servitization in international entrepreneurship: An analysis for Spanish manufacturing firms

• Published in: Journal of international entrepreneurship 2023-06, Vol.21 (2), p.214-244
• Main Authors: Córcoles, David, Díaz-Mora, Carmen, Gandoy, Rosario, Triguero, Ángela
• Format: Article
• Language: English
• Subjects: Business and Management; Entrepreneurship; International Economics; Management; Manufacturing; Microeconomics
• ISSN: 1570-7385; 1573-7349
• DOI: 10.1007/s10843-023-00335-4

In the context of international entrepreneurship, the aim of this study is to explore the relationship between servitization and export behavior in manufacturing firms. This relationship would be an example of international entrepreneurship where firms produce and sell both manufactures and services as a way of increase differentiation and create value in order to penetrate and stay in foreign markets. Our findings show that servitized firms are more likely to internationalization in terms of starting and staying in exporting markets than pure manufacturing firms, mainly when the firms are small, which suggests an enhancing effect of servitization on international entrepreneurship, particularly for smaller firms. These results support the idea that servitization upgrades manufacturing firms’ ability to attract foreign clients and to maintain them by further differentiation of their products through the offering of services that meet customers’ needs. Moreover, since they are often highly customized services, consumers’ loyalty increases and so does the ability of servitized firms to resist replacement by competitors.