Enhancing sustainability performance through Digitalization and Servitization: Implications from the automotive industry

Abstract

Sustainability has become a major concern for highly technologized industrial sectors worldwide. Thus, over the recent years, companies have gradually increased their awareness on environmental issues and adopted a more responsible environmental behavior. However, this global upsurge in environmental concern is having a particular impact on the automotive industry forcing vehicle and auto parts manufacturers towards more sustainable practices in order to keep their operations in compliance with environmental regulations. This context has led companies to the use of digital technologies to support operations and fulfill environmental objectives. Equally, these technologies have enabled the implementation of digital servitization to overcome environmental challenges and enhance sustainability performance. This study analyses sustainability performance through the implementation of digitalization and servitization in the automotive industry. Following a mixed methodology approach this study demonstrates the importance of establishing a successional order of performance priorities where digital servitization must be considered a prerequisite for enhancing overall sustainability performance.