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Purpose

Servitization and research and development (R&D) innovation provide new developmental opportunities for transformation in the construction industry. This study aims to explore the transformative impact of servitization and R&D innovation on the value added of the construction industry, offering new insights into industry transformation and growth.

Design/methodology/approach

This study utilizes panel data from Chinese listed construction companies from 2014 to 2022 to empirically investigate the relationship among servitization, R&D innovation and value added in the construction industry. The data analysis is augmented by incorporating text mining techniques to rigorously investigate the interplay among servitization, R&D innovation and the value added within the construction industry.

Findings

The research findings indicate that the impact of servitization on value added follows a positive U-shaped relationship, while the influence of R&D innovation on value added exhibits an inverted U-shaped relationship. Additionally, innovation investment plays a negative moderating role in the relationship between servitization and value added.

Originality/value

This study reveals a fresh perspective on how construction companies can leverage servitization as a strategic pathway for transformation and competitive advantage. The research also lays a theoretical groundwork for future innovation investment strategies in the construction industry, emphasizing the need for a balanced approach to innovation investments to maximize value added.

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