Abstract:     The manufacturing servicization becomes a trend of world manufacturing industries. Many manufacturing firms access their competitive advantages trough technology standards or strategic alliances. However, the development of modern services weakens the above advantageous. Some service industries like e-commerce create more spaces and provide competitiveness to firms. Therefore, more and more manufacturers select servicization as their way of competing in the markets. These phenomena create new research questions, particularly for emerging market firms. For example, during the process of supply side structural reform, will the manufacturing servicization improve the productivity of firms? Aiming at solving these issues, this paper investigates the co-influencing effects of the energy consumption per capita, industrial chain upgrading and innovation capability on productivities of firms in the context of supply-side structural reform. It mainly emphasizes the following questions. First, during the process of supply-side structural reform, does the manufacturing servicization improve the productivity of manufacture firms? Second, how some key factors, such as the energy consumption per capita of enterprises and industrial restructuring influence the firm productivity? Third, in the context of supply-side structural reform and adjustment of industrial structure, what is the role taken by firm innovation capabilities? 
    This paper incorporates the industrial organization theories (IO) and firm innovation and employs a firsthand dataset of firms in emerging markets of China. It focuses on the process of manufacturing servicization and it influences to firm productivities by emphasizing several key issues: context, trajectories and consequences. The main failure of previous studies is not to successfully provide logic of understanding the above issues. To fill this gap, we propose a theoretical framework incorporating the determinants, processes and outcomes of servicization together with consideration of the influences from the supply-side structural reform. First, we argue that the supply-side reform and industrial restructuring are two interplayed processes. They exert their mutual influences to firm productivities. Second, we try to find and analyze the trajectories of improving firms′ productivities in the process of their servicization. This paper is to figure out and the most efficient way to enhance productivities of firms as to their servicization. It captures the consequences of trajectories and analyzes the influencing mechanism of key factors such as the energy consumptions per capita, industrial chain upgrading and innovation capabilities in those trajectories. Employing a dataset from manufacturing firms in the emerging markets of China, we adopt the ordinary linear regression to test our hypotheses. 
    It finds that the degree of manufacturing servicization is positively related to the firm productivity (H1). It indicates the process of servicization actually improves firms′ productivities, which provides evidences that manufacturers could select the strategy of servicization to strengthen their competitive positions in emerging markets. The underlying mechanisms, we believe, might be that the servicization could make manufacturers access benefits of knowledge similarity. Besides technological advantageous, many manufacturing firms also have accessed other knowledge such as experiences of market expansion. Those firms could utilize the technology and non-technology knowledge together for servicization. At the same time, the servicization also creates more opportunities for manufacturing firms to collaborate and learn from the service industry firms, which in turn accumulates and creates strong competitiveness. However, such positive relationship is negatively moderated by the energy consumption per capita of a firm (H2). It indicates the determinant role taken by the energy consumption of firms for improving their productivities. Under the circumstances of supply-side structural reform, firms′ energy consumption becomes more important, and determines the final consequences of industrial upgrading. This predication is strongly supported by our empirical results. For those manufacturing firms who are adjusting their industrial structures, the positive relationship between the degree of servicization and firm productivity is strengthened (H3a). Moreover, the higher degrees of industrial structure adjustment, the higher strengthen effects (H3b). And the innovation capability also affects the above associations. We find that it positively moderates the positive relationship between the servicization and firm productivities (H4). That is to say, the positive association of the servicization and firm productivities is strengthened by firm innovation capabilities, which is consistent with the general argument that the innovation of firm is one of the drivers of manufacturing servicization. Our findings cast a light on studies of manufacturing servicization of emerging market firms. 
    Conclusions demonstrate theoretical significances and practical implications for the transformation and upgrading of Chinese firms in the context of supply-side structural reform. Theoretically, we expand the boundaries of industrial organization and firm innovation by incorporating them into interpreting processes of servicization and industrial upgrading. We conclude that the manufacturing servicization improve firm productivities. However, such positive association is weakened by the energy consumption per capita of a firm. This argument has some indications to the energy consumption of firms in supply-side reform. It emphasizes the importance of the balance between energy consumption and firm outcomes. Practically, we propose some suggestions for enterprises in the actual businesses. Our paper shows the industrial restructuring and firm innovation capability strengthened the positive relationship between the manufacturing servicization and firm productivities. It implies the important decision of accepting the restructuring of industries to which manufacturers belong. Meanwhile, during that restructuring process, the innovation capabilities of firms play a determinant role in maintaining and improving firms′ productivities. The above arguments contribute a lot to the industrial upgrading and firm innovation in emerging markets.
   Even though, our study has some limitations. First, our dataset is constructed based on the representative manufacturing firms in the emerging markets of China. Therefore, our conclusions are constraint into the servicization of emerging markets of China. We hope more general datasets and representative manufacturers could be included in the further discussion. Second, we mainly investigate the trajectories of servicization on the basis of some factors such as the energy consumption per capita, industrial chain upgrading and innovation capabilities. It might neglect some other factors influencing firm productivities such as geographical or institutional elements from other perspectives. Of course, answering such issues might go beyond scopes of this paper. However, it creates the spaces for future research. 

Key words: supply-side structural reform, firm productivity, transformation and upgrading, manufacturing servicization, innovation capability