Servitization and Manufacturing Firms’ Performance: Korean Firm-Level Data Evidence

Jae Wook Jung and Hyunsoo Kim ()
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Hyunsoo Kim: Korea Institute for International Economic Policy

East Asian Economic Review, 2022, vol. 26, issue 4, 257-277

Abstract: Does servitization improve manufacturing firms’performance, and in what condition? Following Crozet and Milet (2017)’s seminal work, this study analyzes disaggregated firm-level data that covers 40,000 South Korean manufacturing firms surveyed by the Survey of Business Activities of Korea. We compute firm-level servitization intensity with available sales data of each firm by two-digit SIC sub-sectors. We find two novel empirical regularities: Korean servitization intensity distribution shows a very different shape from the French benchmark; Servitized firms tend to perform higher profitability and higher productivity.

Keywords: Servitization; Manufacturing; Firm Performance; Productivity (search for similar items in EconPapers)
JEL-codes: L25 M20 O31 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:ris:eaerev:0413

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