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This article aims to contribute to the digital servitisation literature by investigating the interrelations amongst Industry 4.0 technologies, servitisation and the performance of manufacturing small and medium-sized enterprises (SMEs).

The research uses survey data drawn from 200 manufacturing SMEs operating in the metals and machinery sector in Italy.

The study shows that Industry 4.0 technologies – Internet of Things (IoT), advanced simulation, cloud computing and Big Data Analytics (BDA) – positively moderate the relationship between servitisation and the performance of SMEs.

The study supports the need for firm managers of manufacturing SMEs to align servitisation and technological investments, suggesting that the synergic deployment of Industry 4.0 technologies supports servitisation performance.

The study supports the need for firm managers operating in business-to-business contexts to align their technological investments and servitisation strategies, suggesting that the synergic deployment of these Industry 4.0 technologies empower the effectiveness of servitisation strategies in terms of performance achieved.

The study highlights the moderating role played by specific Industry 4.0 technologies in the servitisation–performance relationship, opening avenues for future research exploring the mechanisms that underpin this complex relationship.

The purpose of this paper is to understand the strategic management of a technology-enabled shift from a product-centric to a service-centric logic and to identify the sociotechnical dynamics underlying this transition. The study focuses on how manufacturers manage to create value in industrial markets through digital servitization.

An abductive research approach is used to investigate two manufacturing firms, and an interpretive framework is used as an analytical template. A cross-case analysis is conducted.

The case companies strategically managed sociotechnical processes of digitization to co-create value. Their service orientation delineates dissimilarity in terms of digital servitization. It reflects a viable ecosystem that moves toward datatization through adaptation in one case and a viable ecosystem that moves toward digitization through reconfiguration in the other case.

A theoretically grounded, empirically informed framework is proposed to detect transformational mechanisms to manage value co-creation in digitally servitized contexts, thus contributing to ecosystem viability.

This is the first study to adopt a system perspective such as the viable system approach combined with service-dominant logic to reconceptualize the overall sociotechnical processes and the underlying mechanisms leading to digitized value creation. In line with a systems view and a systematic process based on a transformative attitude toward digital servitization, the empirically informed framework identifies specific co-creation activities and recursive feedback loops.