Search Conferences

Type in any word, words or author name. This searchs through the abstract title, keywords and abstract text and authors. You may search all conferences or just select one conference.

 All Conferences
 EMAC 2019 Annual Conference
 EMAC 2020 Annual Conference
 EMAC 2020 Regional Conference
 EMAC 2021 Annual Conference
 EMAC 2021 Regional Conference
 EMAC 2022 Annual
 EMAC 2022 Regional Conference

EMAC 2021 Annual Conference

The role of performance reward in driving dealers’ divergent investments in service and sales

Published: May 25, 2021


Peng Wang, BNU-HKBU United International College; Maggie Chuoyan Dong, City University of Hong Kong


Servitization is a trend in manufacturing industries. However, little is known about how manufacturers can stimulate their dealers to act in concert in the servitization progress. Do all the dealers serving a manufacturer embrace servitization to the same degree? Grounded in the behavioral theory of the firm, we propose a disparate picture of dealers altering their service engagement after obtaining different levels of reward from the manufacturer. Specifically, low-rewarded dealers act more conservatively in servitization engagement by investing more in sales, while high-rewarded dealers are more proactive in engaging in servitization by investing more in service. In addition, multi-level contingency factors, including local reward dispersion and local economic growth, alter the baseline relationship between dealers’ reward relative to their aspirations and service engagement. We employ an archival dataset of the dealer network of a major automobile manufacturer to empirically test our hypotheses. The results lend general support to the hypotheses.


The study was supported in part by UIC Start-up Research Fund (No. R72021118).