Highlights

In 2007, about 70 % of the French manufacturing firms produced some services for third parties. This share is growing over time. These servitized firms are larger (in terms of total production and employment), produce more goods and are more profitable. There is a causal impact of servitization on firm performance: Firms that start selling services experience an increase in their profitability, employment, total sales and sales of goods. These positive effects of servitization strategies are mainly visible for small businesses. Should everybody be in services? The effect of servitization on manufacturing firm performanc