Unpacking servitization: A review on assessing its effects on manufacturing firm performance and strategic choices

The phenomenon of servitization entails a strategic transition from a product-centric business model to a service-oriented model to create value for customers and foster innovation. This study examines the evolutionary process of servitization in manufacturing firms by investigating how this shift influences the performance of organizations across organizational, workforce, and environmental dimensions. A comprehensive analysis of 105 scholarly articles retrieved from the Scopus database and Google Scholar spanning the period from 2012 to 2023 was conducted to uncover how manufacturing companies utilized servitization to improve their competitive advantage. The research utilized a methodical approach, incorporating content analysis and integrating the Antecedents, Decisions, Outcome, and Theory Context Method conceptual framework. It explores the impact of servitization strategy on organizational, human resources, and environmental factors while also outlining nine pivotal decisions that determine the success of both servitization and firms. The study considers various performance metrics, encompassing financial and nonfinancial indicator.