To Örebro University

Studies of servitization processes in product-based firms generally describe a transition process from basic, product-oriented services towards more advanced, process-oriented ones, eventually leading to the provision of integrated solutions. The concept of firms going through a service transition is frequently used in both academia and practice. However, using case study research based on longitudinal analysis of servitization and innovation processes in ten product-based firms, we question the generalizability of these established conceptualizations. Instead, we argue that servitization is not always about moving from less to more advanced services. A firm offering a wide range of services may nevertheless have fragmented service operations in a product-based business, an opaque service organization, and unsystematic service development, thereby constantly failing to meet sales targets and profitability expectations. The number and range of services offered should therefore not be a sole proxy of a firm’s servitization efforts. Furthermore, servitization is not only a matter of moving from less to more advanced services but also about utilizing the knowledge gained from the largest, most advanced service contracts and solutions; there is often an inherent potential in downsizing, standardizing, and formalizing elements of the most advanced services and solutions, and to make use of these when offering also less complex services in an efficient and effective manner.