The measurement of degree of servitization: literature review and recommendations

This study reviews systematically the literature on the measurement of the firm-level degree of servitization. The results show that servitization measures are inconsistent across studies, even among those investigating similar research questions, and that a theoretical reference for their appropriate use is still missing. Focusing on these shortcomings, this study conceptualizes the firm-level servitization degree in three classes, i.e. ‘extension’, ‘infusion’, and ‘orientation’. Hence, measures to operationalize each class are derived from the literature review and subsequently discussed with a panel of experts. In addition, servitization measurement is further conceptualized other than firm-level degree, as a measurement at the regional, product, and individual employee levels, other than at the firm level. This study is the first to provide a systematic review on the topic and to develop a general conceptualization and operationalization of servitization measurement. Furthermore, this research is the first to employ an international standard classification of economic activities as a basis to identify objectively firms’ service offerings. This research supports both scholars and practitioners because it brings consistency across studies and applications, thus fostering assessment and comparability of servitization experiences.