East Asian Economic Review

Korea Institute for International Economic Policy (대외경제정책연구원)
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Servitization and Manufacturing Firms' Performance: Korean Firm-Level Data Evidence

  • Received : 2022.12.02
  • Accepted : 2023.01.02
  • Published : 2022.12.30
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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.

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References

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