Servitisation Innovation as a Catalyst to Sustainability and Circular Economy Transitions: A review and future research

Servitization is a business transformation that allows organizations to transition from being product providers to offering integrated service solutions. Recent developments shows that it is necessary to incorporate the concepts like circular economy and servitisation, which evolved from the idea of integrating product service systems that proposes sustainable solutions to companies, conforming to the ESG (environmental, social and governance) and CSR (corporate social responsibility) directions. This transition is facilitated by digitalization, AI, and Industry 5.0 technologies, which are used to manage real-time customer data, predict downtimes, and prevent disruptions to ensure seamless service delivery. Also, servitization supports sustainability by encouraging resource efficiency, reducing waste, and extending product lifecycles through predictive maintenance and circular economy principles. This also involves adopting innovative business models, organizational structures, and workforce capabilities to align with the service-based model. Successful servitization requires co-creating value propositions with customers through efficient service integration. In this evolving landscape, it is crucial to examine the role of AI and advanced technologies in shaping the future of sustainable servitization, ensuring both business growth and environmental responsibility. Therefore, the primary objective of this research paper is to investigate the concept of servitization and its significance in the context of net zero emissions and green transitions, and to also study its impact on sustainable business practices and circularity. A systematic literature review approach using VOS viewer and Biblioshiny was used in this study. Building on these, further research can highlight the potential of servitization to contribute to more holistic and sustainable business practices.