한국생산성학회

Robust manufacturing industry is an important foundation of the national economy. In this study, we examined servitization strategy, which is one of the strategies that the manufacturing companies can take to discover new growth engines and enhance their competitiveness in the market. We recognized the strategic alliance between the manufacturing companies and the service companies as a servitization implementation, in order to observe the short-term financial performance by using an event study methodology. A total of 572 strategic alliance announcements were collected through news articles on the portal sites, News Wire, and DART for KOSPI listed companies and 491 of them were used for statistical analysis. As a result, strategic alliances among the same industry showed statistical significance in the short-term financial performance, however the strategic alliance announcement of the manufacturing company and service company showed statistically insignificant results. This results in a need to discuss the service paradox. An increase in the service revenue of a company may not achieve its intended goal. Even though the costs were increased due to an extension of the service business, the lack of corresponding returns may lead to a service paradox. In this study, the basic market model was used. The event study methodology can also be applied to various models such as the BHARs (Buy-and-Hold Abnormal Returns) approach and the Fama-French three-factor model, both which can be used in future researches. As technology evolves, the servitization strategy will be influenced by next-generation technologies such as the internet of things (IoT), artificial intelligence (AI), among others. They will provide new service growth opportunities and drive innovation in the future.