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Chinese Journal of Management Science ›› 2025, Vol. 33 ›› Issue (12): 360-368.doi: 10.16381/j.cnki.issn1003-207x.2023.0415

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Research on Value Creation Mechanism of Service Innovation Empowered by Digitalization in Manufacturing Enterprises

Jianqiang Luo1,2(), Yueming Hu1   

  1. 1.School of Management,Jiangsu University,Zhenjiang 212013,China
    2.China Research Institute for Agricultural Equipment Industry Development,Jiangsu University,Zhenjiang 212013,China
  • Received:2023-03-15 Revised:2024-01-03 Online:2025-12-25 Published:2025-12-25
  • Contact: Jianqiang Luo E-mail:ljq2809@163.com

Abstract:

As an advanced manufacturing model, service-oriented manufacturing is an important way for China's manufacturing industry to climb towards the high-end of the value chain. It has distinct innovative characteristics, specifically reflected in product and service innovation. Initially, product innovation could bring higher excess profits for manufacturing enterprises. However, due to technological diffusion and product homogeneity, the value created by given product technology gradually weakens, making service innovation an important way to expand the value space. In order to enhance the barriers to entry for services, service innovation supported by product technology internally and empowered by digitalization externally is still necessary. Although practical experience of manufacturing enterprises shows that service innovation empowered by digitalization can achieve value creation expansion, the relationship between digitalization empowerment, product technology and service innovation is complex, and the value creation process of service innovation empowered by digitalization is not clear.To address this issue, aiming to maximize the value creation of service innovation, within the given product technology lifecycle, a dynamic model of service innovation value creation empowered by digitalization is constructed. By solving the model, this article analyzes the impact of customer demands and digitalization empowerment on the value creation of service innovation, which reveals the mechanisms of service innovation value creation empowered by digitalization. By comparing different parameter values, numerical simulation is applied to verify conclusions of the model, as well as clarify the relationships between product technology and service innovation in the process of service innovation value creation empowered by digitalization.The research findings show that, firstly, the value creation of service innovation in manufacturing enterprises is the result of joint action, where enterprises actively respond to market service demand and pay attention to the supportive effect of product technology on service innovation. Secondly, the value creation of service innovation empowered by digitalization in manufacturing enterprises has a critical threshold. Thirdly, the level of service innovation empowered by digitalization will exhibits a feature of “transcending”. The research findings expand the perspective of service innovation value creation, enrich the research of the intrinsic relationship between product technology and service innovation in the digitalization context, and guide the development of service innovation as well as value creation expansion in manufacturing enterprises.

Key words: service innovation in manufacturing enterprises, digitalization, life cycle of product technology, value creation

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