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The authors seek to understand the process of digital servitization as a shift of manufacturing companies from the provision of standard products and services to smart solutions. Specifically, the authors focus on changes in the business model (i.e. the value proposition, the value delivery system and the value capture mechanism) for digital servitization.

The authors examine a Chinese air conditioner manufacturer, Gree, who became the global leader with their smart solutions. These solutions included performance-based contracts underpinned by artificial intelligence (AI)-powered air conditioners that automatically adjust to environmental changes and are capable of remote monitoring and servicing thanks to its Internet of things (IoT) technology.

To successfully offer smart solution value propositions, a manufacturer needs an ecosystem value delivery system composed of suppliers, distributors, partners and customers. Once the ecosystem relationships are well aligned, the manufacturer gains value with multiple value capture mechanisms (i.e. efficiency, accountability, shared customer value and novelty). To arrive at this point, a manufacturer has to pass through different stages that are characterized by both discontinuous and continuous interplay between business models and digital technologies. At the beginning of each stage, new value propositions and value delivery systems are first discontinuously created and then enabled with digital technology. As a result, new value capture mechanisms are activated. Meanwhile, the elements of the existing business model are continuously improved.

By combining process-perspective and business-model lenses, the authors offer nuanced insights into how digital servitization unfolds.

Executives can obtain insights into the business model elements, they need to change over the course of digital servitization and how to manage the process.

A longitudinal case study of a traditional manufacturer that has achieved stellar success through digital servitization business models development.

Scholars studying servitization argue that manufacturers moving into services need to develop new job roles or modify existing ones, which must be enacted by employees with the right mentality, skill sets, attitudes and capabilities. However, there is a paucity of empirical research on how such changes affect employee-level outcomes.

The authors theorize that job enrichment and role stress act as countervailing forces during the manufacturer's service transition, with implications for employee satisfaction. The authors test the hypotheses using a sample of 21,869 employees from 201 American manufacturers that declared revenues from services over a 10-year period.

The authors find an inverted U-shaped relationship between the firm's level of service infusion and individual employee satisfaction, which is flatter for front-end staff. This relationship differs in shape and/or magnitude between firms, highlighting the role of unobserved firm-level idiosyncratic factors.

Servitized manufacturers, especially those in the later stage of their transition (i.e. when services start to account for more than 50% of annual revenues), should try to ameliorate their employees' role-induced stress to counter a drop in satisfaction.

This is one of the first studies to examine systematically the relationship between servitization and individual employee satisfaction. It shows that back-end employees in manufacturing firms are considerably affected by an increasing emphasis on services, while past literature has almost exclusively been concerned with front-end staff.

The purpose of this paper is to examine how business ecosystems evolve, what is the identity of business ecosystem and is the ecosystem identity static or dynamics. To understand the above questions, this paper is conducted on stone carving clusters in India.

The author engaged the ethnographic approach in this study. To sample stone carving clusters of India, the author followed the snowball sampling method. Further, the author did collect the information by informal personal discussions, focus group discussions and participant observations. Furthermore, the thematic analysis and interpretative phenomenological analysis were applied to process the data. The validity and reliability of the method was ascertained by testing the credibility, dependability, confirmability and transferability.

The author found that the business ecosystem of stone carving was dynamic, and it was transformed from the buyer-driven ecosystem to the supplier-driven ecosystem. The identities of the early stage business ecosystem and the late stage ecosystem were analyzed through product, network and information flow. The author developed a structural framework to conceptualize the identity domain of the business ecosystem and the author named it as “nature-conduct-performance model.” Also, the author conceptualized the identity evolution, the influence of social system on business ecosystem identity, and identity-based conflicts and identity-based cooperation in the stone carving business ecosystem.

This study is making additional theoretical contribution in conceptualize the business ecosystem from the identity construct.