Understanding the impact of servitization on distribution networks in the automotive industry

This study examines the impact of servitization on the distribution networks in the automotive industry, emphasizing on the shift from product-oriented to service-oriented business models. Adopting a business network perspective, it explores two primary research questions: How does servitization influence distribution network dynamics in the automotive industry? What challenges and opportunities bring the integration of services into the traditional distribution models? The research uses a qualitative methodology, using case studies from the automotive companies. The findings indicate that servitization modifies distribution networks by augmenting their complexity and presenting new logistical and organizational challenges. Automotive firms are evolving by integrating hybrid business models that merge product offerings with digital and post- sale services and this transition requires organizational alterations. The research enhances the literature by illustrating that servitization is not a linear process; it frequently coexists with conventional product-centric methods and it is influenced by market dynamics and business strategies. The paper provides practical insights for industry professionals, highlighting the need of strategic foresight and adaptability to manage servitization effectively. It emphasizes the importance of combining organizational culture and resources with service-oriented goals. Future research could investigate servitization in other industries and analyze the impact of developing technology on this change.