Exploring Dynamic Capabilities to Facilitate a Smoother Transition from Servitization to Digital Servitization: A Theoretical Framework

Luna Leoni () and Koteshwar Chirumalla ()
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Luna Leoni: University of Rome Tor Vergata
Koteshwar Chirumalla: Mälardalen University

A chapter in The Palgrave Handbook of Servitization, 2021, pp 165-180 from Springer

Abstract: Abstract Many manufacturing companies are adopting servitization as a competitive business strategy to offer product-service combinations. The ongoing shift to digitalization and Industry 4.0 provides novel opportunities and benefits to industrial firms in this regard, and researchers termed the adoption of digital technologies to servitization as “digital servitization”. In order to successfully transition toward digital servitization, fundamental reconfiguration of resources, organizational structures, work practices, infrastructure, culture, etc. is required. The theory of Dynamic Capability provides an interesting analytical framework for holistically studying such strategic organizational changes and transformation. Hence, this chapter scans prior studies covering dynamic capabilities for servitization and digital servitization with related key enablers for the transition from one to another. The purpose is to identify and compare the dynamic capabilities needed to facilitate a smoother transition from “traditional forms” of servitization to digital servitization. In doing so, this chapter presents a theoretical framework of dynamic capabilities to enable digital servitization, providing 22 micro-foundations for servitization and digital servitization. The framework provides an important step for an enhanced understanding of how digital servitization can be built and nurtured from the currently ongoing servitization in industrial firms.

Keywords: Servitization; Manufacturing; Dynamic capabilities; Micro-foundations; Digitalization; Industry 4.0; Product-service system (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-75771-7_11

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DOI: 10.1007/978-3-030-75771-7_11

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