Abstract:This paper defines two types of manufacturing enterprises" derivative service businesses by considering the nature of service. On this basis, it analyzes the motivation, influencing factors and dynamic decision-making process that manufacturing enterprises choose to outsource their service business. Finally, it prospects several directions for future research. The study shows that the characteristics of service outsourcing are differentiated with the evolution of manufacturing enterprise’s dominant logic. The motivation for service outsourcing is to reduce the cost of service provision and increase service value creation. Service provider selection and relationship governance, manufacturing enterprise resources and capabilities, customer demand-oriented technological innovation, as well as the relevance of product and service, affect the service outsourcing decision-making process. Manufacturing enterprises can only ensure the maximization of service value by establishing a reasonable service outsourcing strategy and developing a service outsourcing contract with the service provider.