Servitization and sustainability actions. Evidence from European manufacturing companies

Servitization is a process adopted by some industries and companies to create competitive advantage and increase the value of physical products by adding services. Manufacturing companies may decide to integrate a product-service system into their activities. However, there is no clear evidence of the effects of servitization on performance or sustainability, particularly in a circular economy. The aim of this study was to assess the potential impact of servitization on sustainability in a sample of 208 European listed manufacturing companies by investigating corporate sustainability disclosure, environmental performance, and policies. Using the business descriptions in the Bloomberg database, we identified two groups of companies: "pure manufacturers" and "non-pure manufacturers." We examined potential differences in sustainability between the two groups resulting from servitization. Data were collected for the fiscal year 2016. Our findings suggest that servitization leads to improved energy consumption and therefore enhances environmental performance. However, servitization had no effect on corporate sustainability disclosure and other environmental policies such as environmental assurance, emissions reduction policies, and environmental supply chain management.