Exploring the Impact of Servitization and Digitalization on Firm Competitiveness and Performance: The Moderating Role of Government Support

Hendri Ginting (), Hamidah Nayati Utami, Riyadi Riyadi and Benny Hutahayan
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Hendri Ginting: Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia
Hamidah Nayati Utami: Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia
Riyadi Riyadi: Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia
Benny Hutahayan: Faculty of Administrative Science, Brawijaya University, Malang 65145, Indonesia

Sustainability, 2025, vol. 17, issue 19, 1-28

Abstract: In the rapidly evolving global business landscape, servitization and digitalization have emerged as key strategies for enhancing firm competitiveness and performance. This study examines their impact, along with the moderating role of government support, in the Indonesian shipping industry. Drawing on the resource-based view (RBV), servitization and digitalization are conceptualized as internal drivers of performance, while Resource Dependence Theory (RDT) positions government support as an external factor that reduces environmental uncertainty and strengthens these relationships. Using data from 345 shipping companies, analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM), the results show that both servitization and digitalization positively affect competitiveness and performance. Furthermore, government support significantly enhances these effects by providing resources such as infrastructure and financial incentives, facilitating the adoption of digital strategies and service-based models. Beyond firm outcomes, these transformations align with broader sustainability objectives by improving resource efficiency, reducing waste and delays, and potentially lowering the environmental footprint of logistics activities. This study advances theoretical understanding by demonstrating the central role of external resources—particularly government support—in enabling successful digital and service transformations. For policymakers, the findings emphasize the need for targeted incentives and infrastructure to accelerate industry-specific innovation and sustainability goals. For practitioners, they highlight the importance of aligning strategic initiatives with government policies to maximize the benefits of servitization and digitalization.

Keywords: servitization; digitalization; firm competitiveness; firm performance; government support (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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