THE SERVITIZATION PARADOX: MARKETING'S ROLE IN THE TRANSITION FROM PRODUCT-CENTRIC TO SOLUTION-CENTRIC BUSINESS MODELS
Published:
2026-05-02Downloads
Abstract
The transition from product-centric to solution-centric business models has become a strategic priority for organizations seeking competitive advantage in increasingly complex markets. This shift, commonly referred to as servitization, involves integrating products and services to deliver comprehensive customer solutions. However, many firms encounter the “servitization paradox,” where increased service offerings do not necessarily result in improved financial performance. This study examines the role of marketing in addressing this paradox and facilitating successful business model transformation. Drawing on a conceptual and qualitative review of literature on servitization, marketing, and business models, the paper identifies key challenges related to cost structures, capability gaps, and organizational misalignment. It argues that marketing serves as a critical value integrator by aligning customer needs with solution offerings, enabling value co-creation, and supporting the shift from transactional to relational engagement. The findings highlight the importance of redefining value propositions, strengthening customer relationships, and managing the customer lifecycle effectively. A conceptual framework is proposed to illustrate how marketing-driven strategies can mitigate the servitization paradox and enhance firm performance. The study contributes to both marketing and servitization literature by offering an integrated perspective on value creation and delivery. It concludes that strategic marketing capabilities are essential for achieving sustainable outcomes in solution-centric business models.
Keywords:
Servitization servitization paradox solution-centric models marketing strategy value co-creationReferences
Abuhantash, A. (2023). The future of HR management: Exploring the potential of e-HRM for improving employee experience and organizational outcomes. World Journal of Advanced Research and Reviews, 18(2), 647–651. https://doi.org/10.30574/wjarr.2023.18.2.0883
Afolabi, J. O. A., Olatoye, F. O., Eboigbe, E. O., Abdul, A. A., & Daraojimba, H. O. (2023). REVOLUTIONIZING RETAIL: HR TACTICS FOR IMPROVED EMPLOYEE AND CUSTOMER ENGAGEMENT. International Journal of Applied Research in Social Sciences. https://doi.org/10.51594/ijarss.v5i10.635
Apascaritei, P., & Elvira, M. M. (2022). Dynamizing human resources: An integrative review of SHRM and dynamic capabilities research. Human Resource Management Review, 32(4), 100878. https://doi.org/10.1016/j.hrmr.2021.100878
Baines, T., Bigdeli, A., Sousa, R., & Schroeder, A. (2020). Framing the servitization transformation process: A model to understand and facilitate the servitization journey. International Journal of Production Economics. https://doi.org/10.1016/J.IJPE.2019.07.036
Beurden, J. van, Voorde, K. van de, & Veldhoven, M. van. (2020). The employee perspective on HR practices: A systematic literature review, integration and outlook. The International Journal of Human Resource Management. https://doi.org/10.1080/09585192.2020.1759671
Budrienė, D., & Diskienė, D. (2020). EMPLOYEE ENGAGEMENT: TYPES, LEVELS AND RELATIONSHIP WITH PRACTICE OF HRM. Malaysian E Commerce Journal. https://doi.org/10.26480/mecj.02.2020.42.47
Cayrat, C., & Boxall, P. (2023). The roles of the HR function: A systematic review of tensions, continuity and change. Human Resource Management Review. https://doi.org/10.1016/j.hrmr.2023.100984
Chen, Y., Visnjic, I., Parida, V., & Zhang, Z. (2021). On the road to digital servitization – The (dis)continuous interplay between business model and digital technology. International Journal of Operations & Production Management. https://doi.org/10.1108/IJOPM-08-2020-0544
Chirumalla, K., Leoni, L., & Oghazi, P. (2023). Moving from servitization to digital servitization: Identifying the required dynamic capabilities and related microfoundations to facilitate the transition. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2023.113668
Ciasullo, M. V., Polese, F., Montera, R., & Carrubbo, L. (2021). A digital servitization framework for viable manufacturing companies. Journal of Business & Industrial Marketing, 36(13), 142–160. https://doi.org/10.1108/jbim-07-2020-0349
Daraojimba, A. I., Gloria, B., Bello, Tubokirifuruar, S., Omotoye, G. B., Jason, A., & Kess-Momoh. (2024). Work-life balance and its impact in modern organizations: An HR review. World Journal of Advanced Research and Reviews. https://doi.org/10.30574/wjarr.2024.21.1.0106
Daraojimba, A. I., Jason, A., Kess-Momoh, Tubokirifuruar, S., Bello, B. G., & Omotoye, G. B. (2024). Strategic human resource management in the 21st century: A review of trends and innovations. World Journal of Advanced Research and Reviews. https://doi.org/10.30574/wjarr.2024.21.1.0105
Deepalakshmi, Dr. N., Tiwari, Dr. D., Baruah, Dr. R., Seth, A., & Bisht, R. (2024). Employee Engagement And Organizational Performance: A Human Resource Perspective. Educational Administration: Theory and Practice, 5941–5948. https://doi.org/10.53555/kuey.v30i4.2323
Elufioye, O. A., Ndubuisi, N. L., Daraojimba, R. E., Awonuga, K. F., Ayanponle, L. O., & Asuzu, O. F. (2024). Reviewing employee well-being and mental health initiatives in contemporary HR Practices. International Journal of Science and Research Archive, 11(1), 828–840. https://doi.org/10.30574/ijsra.2024.11.1.0153
Favoretto, C., Mendes, G. H., Oliveira, M. G., Cauchick-Miguel, P., & Coreynen, W. (2022). From servitization to digital servitization: How digitalization transforms companies’ transition towards services. Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2022.01.003
Frank, A., Mendes, G. H., Ayala, N. F., & Ghezzi, A. (2019). Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective. Technological Forecasting & Social Change. https://doi.org/10.1016/J.TECHFORE.2019.01.014
Gustafsson, A., Caruelle, D., & Bowen, D. E. (2024). Customer experience (CX), employee experience (EX) and human experience (HX): introductions, interactions and interdisciplinary implications. Journal of Service Management, 35(3), 333–356. https://doi.org/10.1108/josm-02-2024-0072
Hongal, P., & Kinange, Dr. U. (2020). A Study on Talent Management and its Impact on Organization Performance- An Empirical Review. International Journal of Engineering and Management Research, 10(01), 64–71. https://doi.org/10.31033/ijemr.10.1.12
Itam, U., & Ghosh, N. (2020). Employee Experience Management: A New Paradigm Shift in HR Thinking. International Journal of Human Capital and Information Technology. https://doi.org/10.4018/ijhcitp.2020040103
Kamal, M., Sivarajah, U., Bigdeli, A., Missi, F., & Koliousis, Y. (2020). Servitization implementation in the manufacturing organisations: Classification of strategies, definitions, benefits and challenges. International Journal of Information Management. https://doi.org/10.1016/j.ijinfomgt.2020.102206
Khanra, S., Dhir, A., Parida, V., & Kohtamäki, M. (2021). Servitization research: A review and bibliometric analysis of past achievements and future promises. Journal of Business Research. https://doi.org/10.1016/J.JBUSRES.2021.03.056
Kohtamäki, M., Einola, S., & Rabetino, R. (2020). Exploring servitization through the paradox lens: Coping practices in servitization. International Journal of Production Economics. https://doi.org/10.1016/j.ijpe.2020.107619
Kohtamäki, M., Parida, V., Oghazi, P., Gebauer, H., & Baines, T. (2019). Digital servitization business models in ecosystems: A theory of the firm. Journal of Business Research. https://doi.org/10.1016/J.JBUSRES.2019.06.027
Kowalkowski, C., Kramer, V., Eravci, S., Salonen, A., & Ulaga, W. (2025). Selling and sales management for successful servitization: a systematic review and research agenda. Journal of Personal Selling & Sales Management. https://doi.org/10.1080/08853134.2025.2502168
Malik, A., Budhwar, P., Mohan, H., & R., S. N. (2022). Employee experience –the missing link for engaging employees: Insights from an MNE ’s AI ‐based HR ecosystem. Human Resource Management. https://doi.org/10.1002/hrm.22133
Martín-Peña, M., Sánchez-López, J., & Díaz-Garrido, E. (2019). Servitization and digitalization in manufacturing: the influence on firm performance. The Journal of Business & Industrial Marketing. https://doi.org/10.1108/jbim-12-2018-0400
Mavitha, K., & Das, M. (2024). Unpacking servitization: A review on assessing its effects on manufacturing firm performance and strategic choices. Multidisciplinary Reviews. https://doi.org/10.31893/multirev.2024201
Nicoletti, B., & Appolloni, A. (2023). Artificial Intelligence for the Management of Servitization 5.0. Sustainability. https://doi.org/10.3390/su151411113
Okatta, C. G., Ajayi, F. A., & Olawale, O. (2024a). NAVIGATING THE FUTURE: INTEGRATING AI AND MACHINE LEARNING IN HR PRACTICES FOR A DIGITAL WORKFORCE. Computer Science & IT Research Journal, 5(4), 1008–1030. https://doi.org/10.51594/csitrj.v5i4.1085
Okatta, C. G., Ajayi, F. A., & Olawale, O. (2024b). NAVIGATING THE FUTURE: INTEGRATING AI AND MACHINE LEARNING IN HR PRACTICES FOR A DIGITAL WORKFORCE. Computer Science & IT Research Journal. https://doi.org/10.51594/csitrj.v5i4.1085
Paiola, M., & Gebauer, H. (2020). Internet of things technologies, digital servitization and business model innovation in BtoB manufacturing firms. Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2020.03.009
Palo, T., Åkesson, M., & Löfberg, N. (2019). Servitization as business model contestation: A practice approach. Journal of Business Research, 104, 486–496. https://doi.org/10.1016/j.jbusres.2018.10.037
Panneerselvam, S., & Balaraman, K. (2022). Employee experience: the new employee value proposition. Strategic HR Review. https://doi.org/10.1108/shr-08-2022-0047
Paschou, T., Rapaccini, M., Adrodegari, F., & Saccani, N. (2020). Digital servitization in manufacturing: A systematic literature review and research agenda. Industrial Marketing Management, 89, 278–292. https://doi.org/10.1016/j.indmarman.2020.02.012
Plaskoff, J., & Frey, E. (2024). Strategically addressing the post-COVID organization: the hope of employee experience. Strategic HR Review, 23(2), 70–78. https://doi.org/10.1108/shr-01-2024-0001
Raddats, C., Kowalkowski, C., Benedettini, O., Burton, J., & Gebauer, H. (2019). Servitization: A contemporary thematic review of four major research streams. Industrial Marketing Management, 83, 207–223. https://doi.org/10.1016/j.indmarman.2019.03.015
Sahu, D. S. R., Singh, Dr. S., & Sharma, Dr. A. (2025). From HR Analytics to AI-Driven HRM: Enhancing Workforce Productivity and Engagement. Journal of Information Systems Engineering & Management. https://doi.org/10.52783/jisem.v10i21s.3395
Torre, A. R. de la, & Sanchez, D. (2022). Evolution of Servitization: new business model opportunities. International Journal of Production Management and Engineering. https://doi.org/10.4995/ijpme.2022.16719
Tronvoll, B., Sklyar, A., Sörhammar, D., & Kowalkowski, C. (2020). Transformational shifts through digital servitization. Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2020.02.005
Tucker, E. (2020). Driving engagement with the employee experience. Strategic Hr Review. https://doi.org/10.1108/shr-03-2020-0023
License
Copyright (c) 2026 Natasya Nurkhalita, Lukmanul Hakim, Tibrani
This work is licensed under a Creative Commons Attribution 4.0 International License.
