Circulating for Service Sustainability : Examining relationship between sustainability and servitization in both B2B and B2C context of electric vehicles

Abstract: Background: Due to the escalated environmental concerns and the requirement of Paris Agreement, restraining the carbon emission is aimed on a global scale. Being a solution, the electrification of vehicles is inevitable whilst the problematization to the batteries continues. Many strategies, from improving the battery default as a product, to servitizing the batteries in the light of servitization, has been attempted by both battery suppliers and car manufacturers. In connection to sustainability concerns, which refers to the battery End-of-Life (EoL) Management, however, not many scholars believe that circular economy for electric vehicle batteries can shape itself. Deeming the massive adoption of electric vehicle as the foundation of circular economy, some scholars advocate, that servitization can propel the execution of sustainable goal when it changes the ownership of batteries from customers to manufacturers.  Purpose: The proposed relationship of battery servitization and sustainability is standing alone shortly since 2020 without much evidence support. Hence, it is put on the list of examination to identify the motives and interest of manufacturers by offering battery servitization. Moreover, owing to the fact that the literature of battery servitization is seen segmented for only single dimensioned service type, it is also aimed by this thesis to coin the status-of-art of battery servitization from the empirical study, with customers’ perspective included.  Methodology: This thesis is designed based on a mixed method including qualitative interviews and quantitative surveys to answer the research questions that none of the methods could answer alone. Both inductive and deductive approaches were adopted due to the discrepant results from the empirics. Particularly, triangulation design, obtaining different yet complementary data to study the same topic, is followed to structure the discussion.  Findings & Conclusion: Generally, the findings answer the purpose of writing this thesis well. From qualitative study, battery servitization is more of a marketing strategy and not after a goal of building the circularity. However, sustainability is deployed by manufacturers of all levels in the supply chain. Additionally, Battery-as-a-Service (BaaS) as an all-round service solution is enlarging the content to servitize. Further, not being much aware of though, battery servitization is enabling the circularity of batteries owing to the respective battery strategies of each manufacturer. This is to say, sustainability is considered in combination of battery servitization, as the theoretical base of this thesis suggests. From quantitative study, customers’ satisfaction level proves that the manufacturers’ aimed goal is partly achieved. However, to use battery servitization as a marketing strategy for electric vehicle adoption, which indirectly facilitate sustainability, it should be invested more efforts to help more potential customers accept it.