Serviceization and Cost Stickiness: Evidence from China's Manufacturing Listed Companies

Based on the data of China's 2007-2017 Shanghai and Shenzhen A-share manufacturing listed companies, this paper studies the impacts of servitization on cost stickiness. It is found that in the manufacturing listed companies, the cost stickiness will decrease as the servitization level increases before the level of servitization reaches a certain level; when the level of servitization reaches a certain level, the cost stickiness will increase as the servitization increases. In other words, there is a significant U-shaped relationship between servitization and cost stickiness. The conclusions of this paper are of great significance to the understanding of the cost behavior in the process of servitization, and the realization of "Made in China 2025".