Abstract: To shift from merely producing tangible products to providing value-added services based on products is a clear trend of China’s manufacturing enterprises to achieve a synchronous development of industrialization and servitization at present. The practice of the idea of service-oriented manufacturing in China has accelerated the service innovation of the manufacturing enterprises, which enables the enterprises to shift from the simple manufacturing and processing operations to providing the customers with comprehensive and whole-life-cycle service, thus the manufacturing businesses are elevated to the high value end. Through productive service, service production and real-time customers’ participation, a mutual fusion of products and services of manufacturing enterprises has been realized, which can effectively accelerate the pace of the transformation of China’s manufacturing industry. The research results show that the main driving factors for the service innovation of China’s manufacturing enterprises include the market competition degree, the customer heterogeneity and the demand for the solutions for a whole-set problems, with which the manufacturing enterprises are faced, as well as the service-oriented strategic concept. While the features of the products provided by the enterprises, technological levels, management capabilities and the ability to create network value have all provided effective support for the implementation of service innovation of manufacturing enterprises.

Key words: service-oriented manufacturing; service innovation; product service system; case study