FROM PRODUCT-CENTERED TO SERVITIZED INDUSTRY: PLACING PRODUCT-SERVICE INTEGRATION MODEL UNDER THE UMBRELLA OF THE UN CONVENTION ON CONTRACTS FOR THE INTERNATIONAL CONTRACTS FOR SALE OF GOODS

Abstract

Over the last four decades, producers of durable goods recognized the role of services as a tool to increase their competitiveness and achieve long-term growth. Consequently, the producers began to integrate services into their products to satisfy their customers' needs, a process known as servitization. Since its introduction in the late 1980s, servitization received practical affirmations and focused on diverse and interdisciplinary research. Nevertheless, legal aspects and considerations, particularly those concerning contracts, are remarkably scarce. This is surprising since challenges in the transition to product-service integration call for a framework that ensures predictability and certainty on the one hand while enabling proactive contract design and management on the other. We aim to fill this gap by examining the application of the UN Convention on Contracts for the International Sale of Goods (the "CISG") on servitized business-to-business ("B2B") contracts.