A recent study has shed light on how advanced servitization influences the sales performance of manufacturing companies in international markets. The research, co-authored by our researcher Jonathan Calleja-Blanco, explores the effects of advanced servitized products and the role of distribution channels in enhancing sales over time.
The study published in International Marketing Review analyzed over 4,000 sales transactions from 2010 to 2019, collected from a single high-tech manufacturer specializing in servitized solutions across 74 foreign markets. Utilizing a time fixed-effects model, the researchers investigated the relationship between the proportion of advanced servitized products and sales performance.
Key findings indicate that advanced servitized products have a positive effect on sales performance over time. This impact is moderated by the choice of international distribution channels. Specifically, having a physical presence (onsite presence) in the customer’s home market significantly enhances the positive effect on sales, whereas relying on external intermediaries has a negative moderating effect.
The study also highlights the critical role of global distribution channels in the effectiveness of servitization strategies. Onsite presence fosters better customer interaction and knowledge transfer, which in turn improves sales performance. In contrast, intermediaries, while useful, tend to diminish the direct impact of advanced servitized products on sales.
These findings offer valuable insights for manufacturing firms engaged in international markets, emphasizing the importance of choosing the right distribution channels to maximize the benefits of servitization strategies.