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http://dx.doi.org/10.11644/KIEP.EAER.2022.26.4.413

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

Jae Wook Jung (Sogang University)
Hyunsoo Kim (Korea Institute for International Economic Policy)
Publication Information
East Asian Economic Review / v.26, no.4, 2022 , pp. 257-277 More about this Journal
Abstract
Does servitization improve manufacturing firms' performance, and in what condition? Following the seminal work of Crozet and Milet (2017), 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 than non-servitized firms.
Keywords
Servitization; Manufacturing; Firm Performance; Productivity;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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