This study has set out to build the evidence base underpinning the context of the SMEservitization transformation. It explores how the organisational environment forcesmanufacturing SMEs to move towards service provision through depicting theirperception of the business environment. The study contributes to the understanding ofservitization by populating the selected conceptual model with insights drawn fromcollective experiences of 25 senior executives from 17 servitizing SMEs. The findingssummarise how internal and external organisational environment factors shapeservitization transformation and how they differ when considering the stages oftransformation