Are smart service manufacturing providers different in cooperation and innovation flexibility, in innovation performance and business performance from non-smart service manufacturing providers?

Abstract

To overcome the challenges posed by increasing competition, many traditional manufacturing companies are moving from the mere production of manufacturing goods to the integration of services that are more or less integrated into the product, which is also due to the constant development of the industry. Moreover, many manufacturing companies offer products that use smart technologies. This paper focuses on the importance of smart service provision for cooperation and innovation flexibility, innovation performance and business performance in small and medium manufacturing companies. The paper aims to find out if smart service manufacturing providers are different in cooperation and innovation flexibility and innovation and business performance from non-smart service manufacturing providers. To better understand the issue, research was undertaken in 112 small and medium manufacturing companies of the Czech Republic. The problems of smart service provision were investigated in the first empirical research held among the electric engineering companies (CZ-NACE 26 and CZ-NACE 27) in the Czech Republic. The findings show that smart service manufacturing providers are better in internal cooperation flexibility, innovation flexibility related to product and to accompanying services and in business performance than non-smart service manufacturing providers. Theoretical implication contributes in two specific ways: First, in the presentation of the interconnection of smart services and cooperation flexibility, innovation flexibility, innovation performance and business performance; and second, in the identification of the impact of smart services in manufacturing SMEs and in finding out which areas affect the provision of smart services. The findings can have a positive influence in several areas; therefore, they can be important factors for many manufacturing companies which still need some persuasion to offer smart services.