Navigating the Landscape of Sharing Economy: Servitization-based Business Model Innovation

Abstract

Contemporary business environment alongside the advancement of digital technologies inspires organizations to adopt different business model innovations, embracing concepts like product-service systems (PS systems) and sharing economy. Both approaches are primarily about the creation of added value for those involved in the ecosystem by focusing on providing access to goods and services rather than pure ownership. Consequently, this leads to achieving resource optimization, step-forward sustainable development and advancing overall user experience. While a shift toward models enriched by services, promises enhanced customer value, it also entails uncertainties, organizational challenges and various risks, including managerial, operational or financial. Therefore, this paper examines and compares servitization-based business models grounded on recognized features from the available literature. This should be a starting point for a better understanding of the mutual value of these approaches and the corresponding effects of their application.