Investigating the influence of resource-capability bundles on firm performance in manufacturing servitization

Purpose – The main objective of this research is to advance the understanding of the resource-capability bundles and servitized firms' performance linkage by considering the mechanism of complementarity between resources and capabilities. Design/methodology/approach – The study conducted an exploratory study of 83 equipment manufacturing companies from the theoretical perspective of resource-based view based on mixed content analysis (automated and manual) and set theory analysis. Findings – Our study finds that co-presence of intangible resources and capabilities is often associated with high servitized firm performance. The findings also suggest that management systems play critical roles in holding together other resources and capabilities in the effective bundles because management systems often work as complements. Paradoxically, human resources – a type of resource widely believed to be positively associated with firm performance – decrease the effectiveness of the resources and capabilities bundle. Originality/value – Our research unboxes the framework of the mixed effects of resources and capabilities on servitized firm profits. Analyzing the complex complementarities between various resources and capabilities through this unique framework provides a more nuanced perspective. In addition, this is the first study to explore the impact of resource and capability bundles on the performance of equipment manufacturing firms from a configuration perspective.