Digital servitization bridging relational asymmetry

Abstract

PurposeThis 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.Design/methodology/approachUsing an exploratory method, qualitative data from the case of Xerox, a pioneering company that embraces servitization business models, has been gathered. The combination of exploratory archival and literature searches allows for a more in-depth understanding of servitization and how it bridges (or does not bridge) the relational asymmetry.FindingsThe 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.Research limitations/implicationsThe study's single-case firm was limited to Xerox as an industry forerunner and could only represent mature and multinational enterprises.Practical implicationsWith the purpose of providing high-quality service, 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.Social implicationsFrom the relational asymmetry perspective, the authors shed light on the aspect of transparency, which is a pivotal cause of any asymmetric relationship. Through the case of Xerox, the study further sheds light on the dual effect of transparency, which could either be an “enabling” or an “impairing” factor. Putting it together, the use of interaction as a basis for co-creation is at the crux of the emerging reality.Originality/valueThis paper examines servitization from a new perspective, proposing that the relational asymmetry bridged by servitization will determine the future of organizations that differentiate themselves through quality relationships.