Bridging the gap between servitization and social innovation.

Abstract

This paper explores the social implications of servitization and unveils the connections between servitization and social innovation. To substantiate these claims, the research elucidates three core concepts of social innovation, namely processes, instruments, and outcomes. The processual view of social innovation examines how societal changes unfold; the instrumental view focuses on tools and mechanisms driving these changes; and last the outcomes view analyses the resultant benefits. The paper reviews systematically the literature on the social impacts of servitization and, based on the mentioned views uses the literature findings to inductively develop three propositions and demonstrate that servitization can represent a form of social innovation, thus capable of profoundly reshaping industrial societies and contributing to progress and people's well-being. In sum, the paper shows the social implications and benefits related to servitization of manufacturing firms and suggests the research priorities in this domain for servitization scholars.