From servitization to deservitization: a literature review on the aspects related to a deservitization movement in manufacturing firms

Abstract

Paper aims

This study identified the main aspects related to deservitization in manufacturing firms, a process involving the dilution of services after their integration into companies’ business models.

Originality

The deservitization process has been identified as a movement among manufacturing companies, but so far, there is limited understanding of its characteristics. The paper contributes to the existing literature by identifying the main aspects related to the dilution of once-added services by manufacturing firms.

Research method

A literature review was conducted. A content analysis of the selected papers (89 publications) was carried out to identify the main challenges discussed in the servitization literature as issues leading to deservitization.

Main findings

The explanations for manufacturing firms failing in the transition to servitization and consequently taking the deservitization path discussed in the literature are related to changes in the organizational structure, new capabilities, modification of the business model and strategy, and difficulties in the interaction between supplier and customer.

Implications for theory and practice

Deservitization is a complex phenomenon, and little is known about it, especially when compared to the existing body of knowledge on servitization. The paper thus extends the knowledge on the conditions leading to deservitization in manufacturing firms.

Keywords
Deservitization; Servitization; Diffusion of services; Market strategy; Reverse servitization