Exploring the alignment between servitization based value propositions and contracts

Purpose: The purpose of this research is to provide further insight into PSSs and the contracts regulating their delivery (in part or in full), through the development of a model linking the characteristics of value propositions associated with basic, intermediate and advanced services to the offer and the contract. Having a clear understanding in this context would lead companies to offer services without a mismatch between the value proposition promised and the contract itself. The motivation for the study comes from a prior study where the service leaders interviewed expressed concerns with the contracting process when moving from basic to advanced services. Design/Methodology/Approach: The research design adopts a multi-step approach that integrates the analysis of literature, the investigation of secondary data sources, and expert interviews. Findings: Through the creation of a conceptual map based on a literature review and secondary sources analysis, this paper provides a holistic view of the distinctive components of the value proposition and contractsin PSS contexts. Furthermore, by exploiting the information from interviews with experts, it contributes to improving knowledge on the relationship between these components. Finally, it contributes to the definition of an effective standard service contract editing process, supporting companies in commercializing their services in complex PSS environments. Originality/Value: There is limited published work in this area, so the link between the value proposition and the contracts appears to be weak. Marketing often speaks of the value propositions forservice, although there often appears to be a gap between the value proposition, the offer and the legal binding agreement.