Servitization: a powerful tool to fill relational asymmetry

This paper aims to investigate how firms such as Xerox, which have transitioned to a digital servitization business model, bridge relational asymmetry. It continues the theme of sustainability from the traditional three pillars—environmental, economic, and social sustainability—to relational in terms of the quality of the relationship between the service provider and the customers. Adopting an exploratory approach, qualitative data has been gathered from the case of Xerox, a pioneering company that adapts servitization business models. The combination of exploratory archival and literature search studies allowed a deeper understanding of servitization and how it directly or indirectly bridges (or does not) the relational asymmetry. The results reveal that a relational dimension is inherent in the servitization business model, whereas in order to achieve sustainability, it must leverage transparency, which may be either an enabler or an impairing factor. A borderline for a transparent relationship that distinguishes these two parameters is established. This exploratory paper gives managers rational insight into whether and when it is sustainable to fill the relational asymmetry between them as service providers and their customers in delivering quality service. Moreover, this study takes a fresh look at servitization, arguing that the relational asymmetry filled by servitization will define the future of businesses that differentiate themselves through quality relationships.