The link between advanced servitization, global distribution channels and the longitudinal performance of sales in international markets

What is it about?

The research presented in this paper has been conducted to understand the impact of advanced-servitized-products on the longitudinal sales performance of manufacturing companies across international markets. The research strives to understand how the onsite presence leverages this impact. To reach this objective, an empirical sample of more than 4,000 sales transactions covering the period 2010-2019 in 74 foreign markets was collected from a single high-tech manufacturer producing and selling servitized solutions. We use a time fixed-effects model to test our theoretically deduced hypotheses. We find the proportion of advanced servitized products to positively impact sales performance over time and that this relation is moderated by the choice of international distribution channel. As compared to direct exports, onsite presence and intermediaries present a positive and negative moderating effect, respectively.

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