Exploring the linkage between servitization and financial performances: evidences from the HVAC industry

Based on previous research we identified 5 variables to measure the degree of servitization of manufacturing companies. Subsequently, we submitted a questionnaire to assess the value of these variables to 250 companies operating in the Italian HVAC industry, receiving 54 answers. Using the aforesaid 5 variables as clustering variables, we conducted a hierarchical cluster analysis. The cluster analysis produced three clusters (highly, medium, low servitized companies), between which the variables were significantly different in the mean. In order to test the effect of servitization on the firms’ financial indexes (ROS, EBITDA margin), we conducted a one-way ANOVA considering the financial indicator as dependent variable and the cluster to which companies belongs to as factors. The ANOVA revealed a significant effect of the level of servitization on both the financial indexes. Finally, we performed a contrast analysis thereby demonstrating that companies highly servitized perform better than those medium and low servitized.