Purpose: This research aims to develop a digital capability maturity model to find the critical capability and define the maturity level of the digital services creation process for the Business Process Outsourcing (BPO) company, which services cover the end-to-end client’s non-core activities involving people, process, and technology.Design/methodology/approach: The study conducts qualitative approaches in variables selection using grounded theory, followed by in-depth interviews and focus group discussion confirming the chosen variables as relevant capabilities. Additionally, quantitative approaches are used to define the impact of those capabilities on the process through an online survey of 208 employees and Structural Equation Modelling (SEM) for model analysis.Findings: The research proves that alignment strategy has a positive impact on the organizational and individual capabilities, both of which have a positive impact on the process. All capabilities are defined in the “quantitatively managed” maturity level, while the collaboration culture and value creation skill indicators are required to be prioritized in development for having a significant driver yet an inferior performance.Practical implications: The proposed model is built to be generally utilized to help the BPO companies understand their critical capabilities and improve their maturity level to lead the industry. The research contribution is not only to develop a model that is suitable for a particular business but also to create more value for academic purposes through improving the model by introducing a new variable "alignment strategy" and “organizational capability” as an essential component influencing the process.Originality/value: This is a multimethod study that elaborates empirical evidence, literature review, and professional judgment to assess the capabilities of the digital services creation process, to prove the importance of alignment between those capabilities, and to define the process maturity level.

PurposeThis study aims to fill the gap in collaboration culture improvement by designing an information-sharing system as an enabler to support the forming dimensions of the collaboration process in previous studies. The authors propose the appropriate system to eliminate the collaboration culture gaps between the related functional units based on in-process interaction learning in a business process outsourcing company.Design/methodology/approachThis study employed action research (AR) based on soft systems methodology (SSM) with a system thinking approach, in which the authors and process actors design the agreed information-sharing system by involving the process actors in identifying the initial problem situation as well as validating the conceptual model through discussions and designing the expected system.FindingsThis study discovers that SSM-based AR is a suited method for designing a system that supports the formation of collaboration culture among actors in the digital service creation process by learning user perceptions and expectations in order to obtain their commitment to empower the proposed system.Originality/valueIn addition to providing a system to minimize the lack of collaboration culture, this study contributes to the academic literature by offering a new way of planning and designing in a system development methodology using soft systems approaches to understand user perceptions, expressing user interaction in a conceptual model and validating it and defining agreed activities to obtain the best design according to user expectations.