Company’s servitization: Antecedents and consequences

Abstract

The article defines the concept of “servitization”, identifies its features, and outlines the antecedents and consequences of servitization for the company. The analysis of academic literature on the concept of servitization was used as a research method. The author presents two approaches to the definition of the concept of “servitization”: the transformation process and the innovation of the business model. The former reflects the need for significant changes, while the latter draws attention to the change in the logic of creating, transferring and receiving value. The proposed definition of the concept of “servitization” adopts the “transformation process” approach, focuses on the formation of a solution and the orientation of a solution to achieve a result. The study highlights the features of servitization: the combination of goods and services, service orientation, focus on meeting customer needs, creating competitive advantages, commitment to the results, establishing relationships with customers, sharing knowledge, increasing the value of the offer and its differentiation, enhancing the productivity of a company. Servitization antecedents groups include improving competition, technological change, the development of international trade and changing consumer trends, while consequences groups include providing a strategic advantage, improving financial condition, increasing organizational efficiency, and developing customer relationships.