EconPapers    
Economics at your fingertips  
 

Territorial servitization: Exploring the virtuous circle connecting knowledge-intensive services and new manufacturing businesses

Esteban Lafuente, Yancy Vaillant and Ferran Vendrell-Herrero

International Journal of Production Economics, 2017, vol. 192, issue C, 19-28

Abstract: The mainstream servitization literature mostly describes the success of manufacturing firms in integrating services for their corporate clients. However, the literature is relatively silent on how territories capitalize on the potential interconnectedness between manufacturing firms and the knowledge-intensive business service (KIBS) sector. The analysis of the outcomes that result from the mutually dependent associations between manufacturing businesses and KIBS firms, a process that we call Territorial servitization, is of great relevance for academics and policy makers. This research hypothesizes that there is a positive symbiotic and bidirectional link between the growth in KIBS activity and employment generation by manufacturing sector start-ups. Furthermore, we scrutinize the mediating role over this relation of relevant industry characteristics, in our case the stock of manufacturing firms and the total number of freights transported. The empirical application considers a unique dataset created from multiple sources—the Global Entrepreneurship Monitor (GEM), the Spanish Institute of Statistics and Eurostat—for the 17 Spanish regions during the period 2006–2012. The results support the view that territorial servitization contributes to employment creation in manufacturing sectors. Territories with a vigorous manufacturing base benefit from a virtuous circle in which KIBS start-ups and newly formed manufacturers are connected through the economic activity of incumbent manufacturing firms. The study offers valuable insights for scholars and policy makers on how to implement specific policies—e.g., the development of digital infrastructures—that facilitate the interaction between manufacturing and KIBS businesses, thus fuelling territorial development.

Keywords: Territorial servitization; KIBS; New manufacturing firms; Industry configuration (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527316303838
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Territorial servitization: Exploring the virtuous circle connecting knowledge-intensive services and new manufacturing businesses (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:192:y:2017:i:c:p:19-28

DOI: 10.1016/j.ijpe.2016.12.006

Access Statistics for this article

International Journal of Production Economics is currently edited by R. W. Grubbström

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2020-02-19
Handle: RePEc:eee:proeco:v:192:y:2017:i:c:p:19-28