Abstract: In this paper, the relationship between service offering and service innovation performance is studied by introducing the knowledge co-production variable in the service-embedded manufacturing, and the main contribution of service offering to service innovation performance and the mediating effect of knowledge co-production are analyzed respectively. An empirical study is presented by using factor analysis, correlation analysis and regression method to analyze the sample data collected from 300 service-embedded manufacturing. It can be shown that customer-oriented and product-oriented service offering are beneficial to service innovation performance; service offering is significantly positive correlated with knowledge co-production; while knowledge co-production has significant positive impact on service innovation performance, and plays a significant mediating role in the relationship between service offering and service innovation performance.

Key words: service-embedded manufacturing, service offering, knowledge co-production, service innovation performance