Abstract: The servitization transformation of manufacturing enterprises in China’s western region is not only related to the transformation and upgrading of the manufacturing industry, but also related to the balanced and healthy development of China’s economy. Howerer, the relationship between servitization and performance in manufacturing firms has not yet been consistently concluded. A panel data of 406 listed manufacturing firms in Western China from 2018—2023 is selected to empirically study the relationship between servitization, corporate governance, and performance of manufacturing firms. The results of the study show that: there is a U-shaped relationship between servitization and performance in manufacturing firms; corporate governance has a positive moderating effect on the U-shaped relationship between servitization and performance of manufacturing firms, resulting in a steeper U-shaped curve pattern. Further analysis reveals that the moderating effect of corporate governance is not found in small firms compared to large firms. The research reveals the complex relationship between servitization transformation and firm performance, enriching the study on servitization transformation in manufacturing firms.

Key words: servitization transformation; enterprise performance; corporate governance

Reprinted from Guangxi Economic Journal, 2024,42(05):16-29.