Antecedents of demand-side search in servitization of manufacturing firms: the critical role of service-oriented HRM practices and market capability

Abstract

Purpose

The purpose of this paper is to explore the antecedents of demand-side search in service strategy of manufacturing firms. In particular, this study examines whether service-oriented human resource management (HRM) practices promote demand-side search by enhancing firms’ market capability as well as how top management service commitment and service organizing moderates this relationship in manufacturing firms.

Design/methodology/approach

To test this research model, this study obtains survey data from two distinct informants of 279 manufacturing firms in China. Data were collected applying a standard questionnaire in a five-point Likert scale. The hypotheses are tested using hierarchical regression analysis and partial least squares.

Findings

Results show that service-oriented HRM practices can promote demand-side search by enhancing firms’ market capability. Furthermore, it is found that top management service commitment negatively moderates the relationship between service-orientated HRM practices and demand-side search, while service organizing positively moderates this relationship.

Research limitations/implications

Depending on cross-sectional subjective data for the core variables and the choice of Chinese manufacturing firms limit the capacity to generalize the findings.

Practical implications

This research suggests that service-oriented HRM practices are important drivers of demand-side search activities and to take advantage of service-oriented HRM practices, firms should commit to market capability development. In addition, it is better to match service-oriented HRM practices with other service-oriented organizational parameters such as top management service commitment and service organizing.

Originality/value

The study highlights the crucial role of service-oriented HRM practices in demand-side search, the mediating role of market capability and the moderating role of other service-oriented organizational parameters such as top management service commitment and service organizing. This study advances research on knowledge search, servitization and strategic HRM.

Citation

Dang, B., Zhang, W., Chen, S., Feng, T. and Zhao, Y. (2019), "Antecedents of demand-side search in servitization of manufacturing firms: the critical role of service-oriented HRM practices and market capability", Journal of Business & Industrial Marketing, Vol. 34 No. 8, pp. 1827-1838. https://doi.org/10.1108/JBIM-10-2018-0306