The use of service in the manufacturing sector is growing in the last decade. Moreover, there are developed and implemented many service business models across the world. Prior studies investigated the role of service business models in the manufacturing sector of developed countries; however, the role of service business models in transition economies (e.g., Serbia) is neglected. This research provides an overview of the use of service business models in the manufacturing sector of the Republic of Serbia from the dataset of 240 manufacturing firms from the European Manufacturing Survey conducted in 2018. Furthermore, results show a positive impact of service business models on the manufacturing firm’s performance.