Creating value in servitization through digital service innovations

Raddats, Chris; Naik, Parikshit; Bigdeli, Ali Ziaee

doi:10.1016/j.indmarman.2022.04.002

Cited by 66 publications

(57 citation statements)

References 67 publications

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“…This multi-theoretical perspective allows us to investigate both exploitation and exploration mechanisms that manufacturers can apply either internally or in collaboration with other actors. Thus, this study answers calls in prior work about how manufacturers facilitate their digital servitization journeys (Kohtam€ aki et al, 2021), and in particular, mechanisms for developing operational capabilities (Raddats et al, 2022). This study makes three main contributions; first, it reveals three operational capability development mechanisms, namely learning, building, and acquiring, highlighting the parallel use of these mechanisms for digital servitization.…”

Section: Introductionmentioning

confidence: 66%

Mechanisms for developing operational capabilities in digital servitization

Momeni

Raddats

Martinsuo

2023

IJOPM

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PurposeDigital servitization concerns how manufacturers utilize digital technologies to enhance their provision of services. Although digital servitization requires that manufacturers possess new capabilities, in contrast to strategic (or dynamic) capabilities, little is known about how they develop the required operational capabilities. The paper investigates the mechanisms for developing operational capabilities in digital servitization.Design/methodology/approachThis paper presents an exploratory study based on 15 large manufacturers operating in Europe engaged in digital servitization.FindingsThree operational capability development mechanisms are set out that manufacturers use to facilitate digital servitization: learning (developing capabilities in-house), building (bringing the requisite capabilities into the manufacturer), and acquiring (utilizing the capabilities of other actors). These mechanisms emphasize exploitation and exploration efforts within manufacturers and in collaborations with upstream and downstream partners. The findings demonstrate the need to combine these mechanisms for digital servitization according to combinations that match each manufacturer’s traditional servitization phase: (1) initial phase - building and acquiring, (2) middle phase - learning, building and acquiring, and (3) advanced phase - learning and building.Originality/valueThis study reveals three operational capability development mechanisms, highlighting the parallel use of these mechanisms for digital servitization. It provides a holistic understanding of operational capability development mechanisms used by manufacturers by combining three theoretical perspectives (organizational learning, absorptive capacity, and network perspectives). The paper demonstrates that digital servitization requires the significant application of building and acquiring mechanisms to develop the requisite operational capabilities.

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Section: Introductionmentioning

confidence: 66%

Mechanisms for developing operational capabilities in digital servitization

Momeni

Raddats

Martinsuo

2023

IJOPM

Self Cite

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“…To help address this therefore, a purposive sampling approach (Sekaran & Bougie, 2016), was adopted for data collection, selecting candidates who could provide sufficient levels of information for the topics being studied. This required the identification of experts having relevant information on servitization (Raddats, et al, 2016;Yeo, et al, 2021;Zighan et al, 2021;Raddats, et al, 2022).…”

Section: Data Collectionmentioning

confidence: 99%

The quality of servitization in project-oriented organizations

Zighan¹,

Bamford²,

Reid³

et al. 2023

IJQRM

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PurposeThis study examines the criteria for evaluating the quality of servitization and the factors influencing the project–service system's success.Design/methodology/approachEvidence was collected through three rounds of Delphi consensus with 42 project managers.FindingsThe results indicate that the quality of servitization in project-oriented organizations is conceptualized as a cumulative construct driven by the product-service system's overall ability to offer more customer value. This value is defined by three interconnected dimensions: the service, the project and the integration system. The study also proposes a novel customer-oriented quality process with two connected levels comprising eight key factors influencing the quality of the project–service systems and nine key quality criteria that assist in evaluating the project–service systems.Practical implicationsOffering extra services is crucial for successful project-oriented organizations to deliver more customer value. The value of servitization is the combined value of products and services. The failure of one of these components to satisfy customers leads to the collapse of the whole system, which entails the need for a balanced-focus quality system toward projects and services.Originality/valueThis study contributes to the quality of servitization in project-oriented organizations, arguing that a balance between service orientation and project orientation is preferred to increase customer value and reduce the clash and ambiguity between project operations and service provision.

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“…Specifically, this includes three aspects. First, digital industrialization promotes the new business models of digital industries, improves the development of service industries, and cultivates new industries based on information and communication, big data, software technologies, and more [45]. For example, the virtual reality industry can be applied in various service industries to promote productivity improvements and scale expansion.…”

Section: The Direct Impact Of the Digital Economy On The Industrial S...mentioning

confidence: 99%

Does the Digital Economy Promote Upgrading the Industrial Structure of Chinese Cities?

Zhao

Peng²,

Wen³

et al. 2022

Sustainability

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As the driving force for the upgrading of the global industrial structure, digital technology has been at the helm of transforming the current economic and technological paradigm. This study empirically analyzes the role of the digital economy in the upgrading industrial structure using panel data from 237 prefecture-level cities in China from 2011–2019. Empirical results show that the development of the digital economy has a significant positive and direct effect on the upgrading of industrial structure, as measured by the two indicators of advancement and servitization. In addition, the digital economy significantly promotes upgrading of the technological progress and human capital of Chinese cities, thus promoting upgrading of the industrial structure. Moreover, the spatial autoregressive model (SAR) and the Spatial Durbin model (SDM) both show that the digital economy has a positive spatial spillover effect on upgrading of the industrial structure.

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Creating value in servitization through digital service innovations

Cited by 66 publications

References 67 publications

Mechanisms for developing operational capabilities in digital servitization

Mechanisms for developing operational capabilities in digital servitization

The quality of servitization in project-oriented organizations

Does the Digital Economy Promote Upgrading the Industrial Structure of Chinese Cities?

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