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Digital servitization: Organizing the firm and working with the ecosystem
Linköping University, Department of Management and Engineering, Industrial Economics. Linköping University, Faculty of Science & Engineering.ORCID iD: 0000-0002-5483-1745
2021 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Traditionally, equipment sales were the main source of revenues for manufacturing firms. The situation has changed, and such firms are undergoing servitization when revenues are increasingly derived from services. In parallel, the digitalization of industries brings novel technologies to the forefront of manufacturers’ agendas. With servitization and digitalization converging, many firms are now undergoing digital servitization. Both internal focus and external focus appear important for digital servitization; yet, the extant research remains scarce, explaining the need to further explore the phenomenon’s intra- and inter-organizational sides. To this end, the present thesis aims to describe and analyze how manufacturing firms manage digital servitization internally and externally.

Building upon the academic literature in industrial marketing and related disciplines, this thesis leverages five appended papers as its empirical foundation. On the intra-organizational side, the empirical findings concern how firms can organize for digital servitization. Specifically, the findings point toward organizing the structure, where a particular emphasis lies on service and product units, especially alongside the spectrum of central/local and front-end/back-end roles and functions. Furthermore, the empirical evidence suggests that organizing the support for digital servitization requires an internal focus on data (together with relevant digital technologies and software), responsiveness, and agility.

On the inter-organizational side, the findings concern how firms can work with their ecosystems. First, working with the vision for digital servitization involves different ecosystem actors, where digitalization-related factors and the timing of relevant initiatives are of importance. Second, working with customers is associated with digital infrastructure for efficient service provision, digital competences of customers, and novel sources and types of value propositions. Third, working with partners requires large-scale, extensive collaboration around digital servitization initiatives, where both commercial and non-commercial actors play an important role. Moreover, the empirical evidence on the inter-organizational side suggests relevant capabilities when working with ecosystems.

In terms of theoretical implications, the present thesis contributes to business marketing research and cross-disciplinary servitization research, belonging to the growing stream of literature that studies intra- and inter-organizational sides of digital servitization. Finally, as managerial implications, this thesis offers suggestions for manufacturers on how to organize the structure and the support for digital servitization, as well as how to work with the external business environment.

Abstract [sv]

Traditionellt sett har försäljning av utrustning varit den främsta inkomstkällan för tillverkningsföretag. I takt med att dessa företag genomgår tjänstefiering har situationen dock förändrats och tjänster har blivit en allt mer central inkomstkälla. Samtidigt genomgår tillverkningsindustrin en omfattande digitalisering, vilket påverkar företagens marknadsstrategier och erbjudanden. Tjänstefieringen och digitaliseringen samspelar, varpå många företag genomgår en digital tjänstefiering. Det har visat sig att internt såväl som externt fokus är av betydelse för den digitala tjänstefieringen, men trots det är forskningen knapphändig och det finns ett behov av att ytterligare undersöka fenomenets intra- och interorganisatoriska sidor. Med den bakgrunden syftar den här avhandlingen till att beskriva och analysera hur tillverkningsföretag hanterar digital tjänstefiering internt och externt.

Avhandlingen bygger på akademisk litteratur inom industriell marknadsföring och relaterade fält. Fem bifogade vetenskapliga artiklar utgör avhandlingens empiriska grund. Intraorganisatoriskt visar resultaten hur företag kan organiseras för att genomgå digital tjänstefiering. Resultaten rör specifikt företagsstruktur, med tyngd på tjänste- och produktenheter samt centrala och lokala roller och funktioner. Vidare tyder resultaten på att det krävs ett internt fokus på data (tillsammans med relevanta digitala teknologier och mjukvara), anpassning och agilitet för att organisera det stöd som behövs för digital tjänstefiering.

Interorganisatoriskt handlar resultaten om hur företag kan arbeta med andra aktörer i sina ekosystem. För det första involverar arbetet med en vision för digital tjänstefiering olika aktörer i ekosystemet. Här är olika faktorer kopplade till digitalisering och timingen av relevanta initiativ av betydelse. För det andra är kundarbetet sammankopplat med en digital infrastruktur för en effektiv tjänsteleverans, digital kompetens hos kunden och nya typer av värdeerbjudanden. För det tredje kräver samarbeten med olika partners ett omfattande arbete kring initiativ som rör digital tjänstefiering. Här spelar både kommersiella och icke-kommersiella aktörer en viktig roll. Vidare belyser resultaten relevanta förmågor för att kunna arbeta med ekosystem.

Avhandlingen bidrar teoretiskt till forskningen inom industriell marknadsföring och den tvärvetenskapliga forskningen om tjänstefiering. Den är en del av den växande litteratur som studerar intra- och interorganisatoriska sidor av digital tjänstefiering. Slutligen bidrar avhandlingen praktiskt genom att föreslå hur tillverkningsföretag kan organisera företagsstrukturen och stödet för digital tjänstefiering, liksom hur de kan arbeta med den externa affärsmiljön.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2021. , p. 67
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 2132
Keywords [en]
Digital servitization, Servitization, Digitalization, Ecosystem, Business marketing
National Category
Business Administration
Identifiers
URN: urn:nbn:se:liu:diva-173921DOI: 10.3384/diss.diva-173921ISBN: 9789179296780 (print)OAI: oai:DiVA.org:liu-173921DiVA, id: diva2:1536235
Public defence
2021-04-23, Online through Zoom (contact christian.kowalkowski@liu.se) and ACAS, A Building, Campus Valla, Linköping, 13:00 (English)
Opponent
Supervisors
Available from: 2021-03-10 Created: 2021-03-10 Last updated: 2021-03-12Bibliographically approved
List of papers
1. Organizing for digital servitization: A service ecosystem perspective
Open this publication in new window or tab >>Organizing for digital servitization: A service ecosystem perspective
2019 (English)In: Journal of Business Research, ISSN 0148-2963, E-ISSN 1873-7978, Vol. 104, p. 450-460Article in journal (Refereed) Published
Abstract [en]

Harnessing digital technology is of increasing concern as product firms organize for service-led growth. Adopting a service ecosystem perspective, we analyze interfirm and intrafirm change processes taking place as firms pursue digital servitization. The study draws on in-depth interviews with 44 managers involved in organizing activities in two multinational industry leaders. Our findings identify major differences between the two focal firms in terms of digital service-led growth and associated ecosystem-related activities. The study disentangles underlying processes of organizational change in the ecosystem and suggests that within-firm centralization and integration play a key role in the capacity to organize for digital servitization. For managers, the findings highlight the need to foster service-centricity in order to take full advantage of digitalization beyond purely technological benefits.

Place, publisher, year, edition, pages
Elsevier, 2019
Keywords
Digitalization, Servitization, Service ecosystem, Digitization, Centralization, Integration
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-154501 (URN)10.1016/j.jbusres.2019.02.012 (DOI)000484647500036 ()
Note

Funding agencies: Riksbankens Jubileumsfond (The Swedish Foundation for Humanities and Social Sciences) [P15-0232:1]

Available from: 2019-02-18 Created: 2019-02-18 Last updated: 2021-08-03
2. Resource integration through digitalisation: a service ecosystem perspective
Open this publication in new window or tab >>Resource integration through digitalisation: a service ecosystem perspective
2019 (English)In: Journal of Marketing Management, ISSN 0267-257X, E-ISSN 1472-1376, Vol. 35, no 11-12, p. 974-991Article in journal (Refereed) Published
Abstract [en]

As digitalisation increasingly encompasses entire service ecosystems, it modifies resource integration patterns that connect ecosystem actors through strong and weak ties. To clarify how technological development contributes to this change, and how resource integration transforms the service ecosystem, this qualitative case study explores the digitalisation strategy of a market-leading systems integrator in the maritime industry. Based on 40 depth interviews with managers, the findings show how technology increasingly serves as a key operant resource in the transformation of resource integration patterns. The study contributes to ecosystem dynamics research by identifying major differences between the pre-digitalised and digitalised states of a service ecosystem, and demonstrates the dual role of technology in both increasing pattern complexity and facilitating coordination of that complexity.

Place, publisher, year, edition, pages
Taylor & Francis Group, 2019
Keywords
Digitalisation, service ecosystems, resource integration, servitization, strong and weak ties, operant resources
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-156252 (URN)10.1080/0267257X.2019.1600572 (DOI)000466220700001 ()
Note

Funding agencies: Riksbankens Jubileumsfond (The Swedish Foundation for Humanities and Social Sciences) [P15-0232:1]

Available from: 2019-04-09 Created: 2019-04-09 Last updated: 2021-07-06
3. Transformational shifts through digital servitization
Open this publication in new window or tab >>Transformational shifts through digital servitization
2020 (English)In: Industrial Marketing Management, ISSN 0019-8501, E-ISSN 1873-2062, Vol. 89, p. 293-305Article in journal (Refereed) Published
Abstract [en]

Manufacturers increasingly look to digitalization to drive service growth. However, success is far from guaranteed, and many firms focus too much on technology. Adopting a discovery-oriented, theories-in-use approach, this study examines the strategic organizational shifts that underpin digital servitization. Notwithstanding strong managerial and academic interest, this link between digitalization and servitization is still under-investigated. Depth interviews with senior executives and managers from a global market leader revealed that to achieve digital service-led growth, a firm and its network need to make three interconnected shifts: (1) from planning to discovery, (2) from scarcity to abundance, and (3) from hierarchy to partnership. Organizational identity, dematerialization, and collaboration play a key role in this transformation. For managers, the study identifies a comprehensive set of strategic change initiatives needed to ensure successful digital servitization. Highlights: • Three strategic organizational shifts are needed for digital servitization success. • The key role of organizational identity, dematerialization, and collaboration • Digital servitization requires changes within both the firm and its entire network. • New business models centered around big data are driving competitive advantage. • Agile mindset and ways of working are imperative for digital servitization.

Place, publisher, year, edition, pages
Elsevier, 2020
Keywords
Digital servitization; Digital transformation; Organizational culture; Agile mindset; Data-centric business model; Big data monetization
National Category
Business Administration
Identifiers
urn:nbn:se:liu:diva-163592 (URN)10.1016/j.indmarman.2020.02.005 (DOI)000564630800027 ()2-s2.0-85079186838 (Scopus ID)
Funder
Riksbankens Jubileumsfond, P15-0232:1
Note

Funding agencies: Riksbankens Jubileumsfond (The Swedish Foundation for Humanities and Social Sciences) [P15-0232:1]

Fulltext is published under Creative Common license CC BY-NC-ND 4.0  https://creativecommons.org/licenses/by-nc-nd/4.0/

Available from: 2020-02-16 Created: 2020-02-16 Last updated: 2021-03-10Bibliographically approved
4. Game-changers: dynamic capabilities’ influence on service ecosystems
Open this publication in new window or tab >>Game-changers: dynamic capabilities’ influence on service ecosystems
2018 (English)In: Journal of Service Management, ISSN 1757-5818, E-ISSN 1757-5826, Vol. 29, no 4, p. 569-592Article in journal (Refereed) Published
Abstract [en]

Purpose Service-dominant logic acknowledges that actors can influence how service ecosystems evolve through institutional work, but empirical research is only nascent. This paper advances understanding of ecosystem change by proposing that dynamic capabilities are a special type of operant resources enabling actors to conduct institutional work. Consequently, the purpose of this paper is to explore which dynamic capabilities are associated with proactively influencing service ecosystems. Design/methodology/approach Drawing on service-dominant logic, institutional work and dynamic capabilities, this exploratory study assumes an actor-centric perspective and proposes a conceptual model with a hierarchy of dynamic capabilities as the antecedents for successfully influencing service ecosystems. The research model was tested with survey data using partial least squares structural equation modeling. Findings Among the dynamic capabilities studied, ?visioning? and ?influencing explicit institutions? directly affect ?success in influencing service ecosystems,? whereas ?timing? does so indirectly through ?influencing explicit institutions.? The other dynamic capabilities studied have no significant effect on ?success in influencing service ecosystems.? ?Success in influencing service ecosystems? positively affects the ?increased service ecosystem size and efficiency.? Practical implications In addition to reactively positioning and competing at the marketplace, firms can choose to proactively influence their service ecosystems? size and efficiency. Firms aiming to influence service ecosystems should particularly develop dynamic capabilities related to visioning, timing and influencing explicit institutions. Originality/value This research is the first service-dominant logic investigation of the linkage between the actors? dynamic capabilities and their ability to influence service ecosystems.

Place, publisher, year, edition, pages
Emerald, 2018
National Category
Economics and Business
Identifiers
urn:nbn:se:liu:diva-150571 (URN)10.1108/JOSM-02-2017-0025 (DOI)000442234000004 ()
Available from: 2018-08-27 Created: 2018-08-27 Last updated: 2021-03-10

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