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While existing literature extensively explores manufacturing firms expanding into services, little is known about the modes of servitisation, the means by which they carry it out. This paper concentrates on acquisitions as a mode of servitisation. Post-acquisition integration is when the potential of an acquisition is realised. The paper therefore aims to categorise types of integrations following the acquisition of servitised firms and discusses their consequences for servitisation.

The empirical part of the paper is based on two case studies, each involving the acquisition of servitised firms. Both acquirers changed their integration approach over time.

The paper conceptualises three types of integrations: rhetorical, insulated and transformative integrations, indicating whether and how the acquirer becomes servitised following the integration. These highlight the analysis of integration based on business models and customer orientation in relation to servitisation.

This paper contributes to research on servitisation by emphasising acquisitions as a mode of servitisation and conceptualising three integration types related to business models and customer orientations. Furthermore, the paper highlights how an acquirer's servitisation leads to new offerings targeting new customers, as opposed to strengthening existing relationships.

This study aims to explore how manufacturing firms master customer lock-in through value creation by servitization innovation strategies from the perspective of asset specificity.

A multiple case study with triangulation fashion is adopted to identify servitization innovation strategies. Several manufacturing firms were investigated, which are distributed in different positions of the value chain. Content analysis and abductive approaches are adopted to analyze the data. Moreover, an in-depth interview and participatory observation were conducted to refine the analysis results.

This study identified four different focusing points of servitization operations. Based on these, the paper further induces an innovative servitization strategy matrix of customer lock-in, concerning communion, intellectual, existential and insubstantial strategies. Furthermore, a conceptual model of customer lock-in by servitization innovation from the perspective of asset specificity is elaborated. It is suggested that companies can use tangible or intangible resources by sharing or storing operations to create servitization value.

This study theoretically proposes a conceptual model to extend servitization innovation as an intangible asset and adopt the new perspective of asset specificity to illustrate the value creation in servitization to generate customer lock-in.

This paper aims to contribute to overcoming the gap existing in the supply chain literature related to digital servitization by bridging digital servitization with knowledge management and identifying the rise of digital knowledge servitization as a driver for changes in the supply chain business model towards open innovation.

The study follows an inductive grounded theory approach for theory building. To analyse the impact of digital knowledge servitization, in-depth interviews of managers in the main business units of the Volvo Group supply chain ecosystem were carried out.

The results show how the digital servitization process affects the supply chain business model, highlighting the central role of knowledge in the service ecosystem and the rise of the theoretical concept of digital knowledge servitization. In particular, through the Innovation Lab (Volvo Group) study, the paper contributes to bringing together the theoretical knowledge-based view of servitization with the digital servitization concept, which demonstrates the role of this combined perspective in the transformation of the supply chain; this is carried out by introducing a new business model based on open innovation in inbound and outbound processes.

The research offers interesting insights from a managerial perspective, as increasingly advanced and complex digital solutions require shorter times in supply chain management (SCM). Companies need to be able to quickly manage information and knowledge flows deriving from internal and external interactions and involvement with external actors upstream and downstream of the supply chain ecosystem. Therefore, the digital knowledge servitization of the supply chain also highlights implications for managers in terms of human resources management.

The novel research goal is to contribute to the supply chain literature by integrating the digital servitization with the knowledge view and analysing the impact on the inbound and outbound supply chain through the introduction of an open innovation business model.

Digital 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.

This paper presents an exploratory study based on 15 large manufacturers operating in Europe engaged in digital servitization.

Three 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.

This 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.

The organizational digital transformation (ODT) in companies presents small and medium-sized enterprises (SMEs) – who remain at the beginning of this transformation – with the challenge of offering digital services based on sensor technologies. Against this backdrop, the present paper identifies ways SMEs can enable digital servitization through sensor technology and defines the possible scope of the organizational transformation process.

Around 21 semi-structured interviews were conducted with experts from different hierarchical levels across the German manufacturing SME ecosystem. Using the Gioia methodology, fields of action were identified by focusing on influencing factors and opportunities for developing these digital services to offer them successfully in the future.

The complexity of existing sensor offerings must be mastered, and employees' (data) understanding of the technology has increased. Knowledge gaps, which mainly relate to technical and organizational capabilities, must be overcome. The potential of sensor technology was considered on an individual, technical and organizational level. To enable the successful implementation of service offerings based on sensor technology, all relevant stakeholders in the ecosystem must network to facilitate shared value creation. This requires standardized technical and procedural adaptations and is an essential prerequisite for data mining.

Based on this study, current problem areas were analyzed, and potentials that create opportunities for offering digital sensor services to manufacturing SMEs were identified. The identified influencing factors form a conceptual framework that supports SMEs' future development of such services in a structured manner.

This paper studies the Digital Service Innovation (DSI) concept by systematically reviewing earlier studies from various scholarly communities. This study aims to recognize how recent advances in DSI literature from different research streams complement and can be incorporated into the growing digital servitization literature to define better and understand DSI.

After systematically identifying 123 relevant articles, this study employed complementary methods, such as author bibliographic coupling, linguistic text mining/textual analysis and qualitative content analyses.

This paper first maps the intellectual structure and boundaries of the DSI-related communities and qualitatively assesses their characteristics. These communities are (1) Innovation for digital servitization, (2) Service innovation in the digital age and (3) Adoption of novel e-services enabled by information system development. Next, the composition of the DSI concept is examined and depicted to comprehend the notion's critical dimensions. The findings discuss the range of theories and methods in the existing research, including antecedents, processes and outcomes of DSI.

This study reviews, extends the understanding of origins and critically evaluates DSI-related research. Moreover, the paper redefines and clarifies the structure and boundaries of the DSI-concept. In doing so, it elaborates on the substance of DSI and identifies the essential themes for its understanding and conceptualization. Thus, the study helps the future development of the concept and allows knowledge accumulation by bridging adjacent research communities. It helps researchers and managers navigate the foggy emerging research landscape.

This study aims to investigate the contribution of knowledge-intensive business services firms to small- and medium-sized manufacturers’ digital servitization journeys, addressing the standardization versus customization dichotomy of services and solutions provision.

To identify the challenges that small- and medium-sized firms must face in the digital servitization journey and the role that knowledge-intensive business services firms may play in the innovation processes, the authors conduct a review on two still unrelated literature streams and develop a longitudinal single-case study, with a particular focus on knowledge generation mechanisms.

Digital servitization is a particularly challenging transformational journey for minor firms. Knowledge-intensive business services firms can act as sources, facilitators, and carriers of knowledge, and they can orchestrate further contributions of other external partners and firms.

The paper contributes to theory describing the roadmap and the role of external service providers in digital servitization journeys of smaller firms’, that are frequently excluded from mainstream research although being the backbone of European economies.

Digital servitization in minor manufacturing firms requires a long-term orientation and a multi-stage roadmap. Mixing standardized technology-based solutions and complementary professional services, knowledge-intensive business services firms can significantly contribute to lowering the journey’s uncertainties, operational complexity, and costs.

The paper sheds lights on how the collaboration between knowledge-intensive business services firms and small manufacturers generates novel knowledge and capabilities that contribute to takle the challenges of the different stages of the digital servitization roadmap.

This paper aims to propose an interpretive framework to understand how machine learning (ML) affects the way companies interact with their ecosystem and how the introduction of digital technologies affects the value co-creation (VCC) process.

This study bases on configuration theory, which entails two main methodological phases. In the first phase the authors define the theoretically-derived interpretive framework through a literature review. In the second phase the authors adopt a case study methodology to inductively analyze the theoretically-derived domains and their relationships within a configuration.

ML enables multi-directional knowledge flows among value co-creators and expands the scope of VCC beyond the boundaries of the firm-client relationship. However, it determines a substantive imbalance in knowledge management power among the actors involved in VCC. ML positively impacts value co-creators’ performance but also requires significant organizational changes. To benefit from VCC via ML, value co-creators must be aligned in terms of digital maturity.

The paper answers the call for more theoretical and empirical research on the impact of the introduction of Industry 4.0 technology in companies and their ecosystem. It intends to improve the understanding of how ML technology affects the determinants and the process of VCC by providing both a static and dynamic analysis of the topic.

The purpose of this paper is to characterize the interfaces between manufacturing companies and the Internet of Things (IoT) suppliers involved in their digital servitization.

This paper builds on an explorative case study of a manufacturing firm and its IoT suppliers. This paper relies on the Industrial Network Approach to study interfaces between buying firms and their suppliers.

This paper identifies three distinct types of supplier interfaces: connected, digital and digital-physical. They all contain technical resource interfaces with additional organizational and/or technical complexities that need to be managed. Connectivity, an Agile approach to software development and strong technical dependence emerged as key factors that impact the interactions between manufacturing firms and IoT suppliers and how their resources are combined.

This paper offers managerial implications regarding the importance of internal organization (such as appropriate cross-functional teams) to manage the dynamics of collaborations required by digital technologies, maintain interactions with IoT suppliers and identify and manage interdependences between IoT suppliers. Building close relationships with suppliers of crucial infrastructure (e.g. IoT cloud platform and data security systems) can also be beneficial for manufacturing firms to reduce risks. Finally, attention should be given to IoT technology strategy, which impacts both digital and digital-physical supplier interfaces.

In digital servitization, manufacturing firms are heavily reliant on external resources for IoT technology. Despite this, few studies have investigated the characteristics of their interfaces with IoT suppliers, how these can be managed and how resources are combined.

Manufacturers face various challenges and risks during their digital servitization (DS), due to the complexity caused by introducing breakthrough technologies, increasingly complex product-service solutions and new stakeholders in the business network. The process necessitates the implementation of various changes that usually happen over a long period of time. Using complexity management as a theoretical lens, this paper delves into manufacturers’ DS journeys and explores how manufacturers manage the associated complexities.

This paper investigates the DS journey of two manufacturers in a longitudinal case study from 2014 to 2021.

Three main complexity management actions during the DS journey were identified: shaping the digital service system, shaping the organization and shaping the network. Tied to different types of complexities, these actions demonstrate how manufacturers navigate their journey. The findings also reveal different complexity management approaches used at the different stages of this journey.

This paper offers a comprehensive framework for understanding complexity management in the DS journey, including the types of complexities, complexity management actions and complexity management approaches and their rationale. This paper shows that different requirements are created during emerge, consolidate and evolve stages of the DS journey. Manufacturers need a dynamic approach that considers changes in complexities and actions over time.