In response to rapidly changing markets, many companies strive to make the fullest possible use of their limited resources to implement a product diversification strategy. And a reform to servitize manufacturing is becoming imperative. However, thus far domestic discourse on the servitization of manufacturing has largely focused on the nature of the servitization of manufacturing, trends in the servitzation of manufacturing, and case studies in the servitization of manufacturing. Studies exploring servitization of manufacturing and performance are rare indeed. Therefore this study will employ the abovementioned variables related to the servitization of manufacturing, variables related to business performance, and the interfering variables of diversification strategy, to explore whether or not diversification helps servitization of manufacturing to deliver better performance. The 128 member companies of the Taiwan Electrical and Electronic Manufacturers' Association are the research subjects in this study, which explores the relationship between the servitization of manufacturing and business performance and the inferring variables of diversification. The empirical results show a positive relationship between the servitization of manufacturing and business performance and interaction between the servitization of manufacturing and diversification, with a positive impact on business performance. Finally this study offers conclusions and suggestions for further studies and the practice of management.
