Transformation Through Servitization: How Buffer Resources and Social Capital Support Transformation in Manufacturing Companies

Servitization has profound implications for the sustainable development of manufacturing, the economy, and the environment. Drawing upon the literature on servitization, resource-based theory, and social capital theory, this study examines the influence of diverse forms of slack resources in manufacturing firms on their transition to a service-oriented business model, as well as the threshold effects of two types of social capital in this process. By conducting an empirical study, using the sample of 538 listed companies in the Chinese manufacturing sector, we confirm that both absorbed and unabsorbed slack resources have a positive effect on servitization, with the former playing a more significant role. Moreover, as political social capital increases and exceeds a specific threshold, the positive influence of both forms of slack resources on servitization is enhanced. Conversely, the positive effect of absorbed slack resources is negated when business social capital exceeds a certain threshold. In addition, the heterogeneity analysis shows that both types of slack resources significantly promote servitization in non-high-tech firms, while their effects are insignificant in high-tech firms; both types of slack resources effectively promote servitization when the industry is highly competitive, and vice versa; for the eastern region, both types of slack resources significantly promote servitization, while their effects are insignificant in the central region, and the negative effects of unabsorbed slack resources are significant in the western region. This study innovatively integrates the dual factors of intra-organizational slack resources and extra-organizational social capital, offering deeper insights and more concrete practical guidance for enterprises in formulating their servitization strategies.