Non-linear relationship between industrial service offering and sales growth: The moderating role of network capabilities

• This study demonstrates the non-linear impact of a firm’s industrial service offering on sales growth.
• In particular, this study highlights the positive moderating effect of network capabilities.
• A generalizable quantitative dataset is analysed by application of sophisticated non-linear modeling.
• Industrial firms need to put much emphasis to co-produce strong service offering, to co-create positive customer experiences.
• Firms need to develop strong capabilities for effective operation in customer relationships, such as network capabilities.

In an effort to approach the mixed findings regarding the relationship between a firm's industrial service offering and its performance, this study analyzes the impact of the industrial service offering on sales growth and the moderating role of network capabilities. The proposed research model is tested based on data from 91 Finnish manufacturing firms. Our results demonstrate a non-linear effect of the service offering on sales growth. We also find that network capabilities enhance the effect of the service offering on sales growth. For managers of manufacturing firms, the results imply that the active development of a comprehensive service offering should be implemented in conjunction with the development of organizational capabilities, such as network capabilities, to create value and promote improved performance.