Servitization is a well-established phenomenon both in business practice and in academic research. It describes a move by manufacturers from offering product-centric value propositions to ones that rely on service elements that support, complement or enhance the product or equipment. Servitization therefore represents a change of business model that involves specifying a new or enhanced value proposition and re-configuring the value- creating system that delivers it. Most studies investigate servitization from the perspective of the provider and its customers. However, value propositions address the entire supply chain rather than only the next stage customer. The value creation system comprises all the activities and resources that play a role in supporting the value proposition including the customer and supply chain members. Academic research investigating the effects of adopting a service-centric business model on the characteristics and the management of the supply chain has been limited until now. The purpose of this paper is to develop a research framework to inform future empirical work on the impact of servitization on supply chain management (SCM). We build on the main conceptualisations of the servitization phenomenon in the literature as well as on the nascent literature that investigates SCM in a servitized context to develop our research framework. The framework suggests that supply chains supporting the provision of different categories of value propositions are likely to operate differently. In other words, the characteristics and management of the supply chain are contingent on the type of value proposition it supports. Our literature review identifies two main categories of value propositions that can be considered polar opposites. ‘Basic’ value propositions are product- oriented, focus on the provision of a product, see service as add-ons to the main product offering, provide an incomplete solution to a customer’s problem and are characterised by short term transactional relationships between the customer and the provider. In contrast, ‘advanced’ value propositions are service-oriented, focus on providing a capability, see the product as an add-on to the service offering, represent a complete solution to a customer’s problem and are characterised by long-term customer-provider relationships. We also reveal the core supply chain management themes that are to be explored empirically. The themes include supply chain configuration, information sharing and communication, manifestations of relationships, supplier relationship management, innovation, risk, human resources and process management and integration. The framework supports the exploration of basic and advanced value propositions and the resultant implications on the characteristics and management of the supply chain. This provides a useful platform for future empirical research on the impact of servitization on supply chain management.
