Barriers to the adoption of digital servitization: a case of the Sri Lankan manufacturing sector

Abstract

PurposeThis research aims to identify, examine and evaluate barriers to the adoption of digital servitization in manufacturing firms in the case of the Sri Lankan manufacturing sector and analyze the inter-relationships among digital servitization barriers.Design/methodology/approachBased on the comprehensive literature review, 13 barriers were identified. The grey decision-making trial and evaluation laboratory (grey-DEMATEL) approach was used to uncover and analyze the relationships among barriers in terms of their overall influence and dependencies.FindingsA prominent barrier to the success of adopting digital servitization in the Sri Lankan manufacturing sector is the lack of digital strategy in developing activities related to the design of digital service packages, organizational structures and processes. Supply chain integration is the most influential factor, which plays an important role in developing a competitive advantage by encouraging innovation process capabilities in servitized companies.Practical implicationsIndustry practitioners can develop guidelines for adopting digital servitization practices based on the importance and interdependencies of different barriers and thereby prioritize projects within a program of digital servitization adoption in their organizations.Originality/valueResearch studies on barriers to digital servitization are limited to exploratory nature and have adopted mainly the qualitative approach, such as in-depth interviews. No empirical study has investigated the inter-relationships among digital servitization adoption barriers in the manufacturing sector. This study provides a holistic view of different barriers to the adoption of digital servitization in the manufacturing sector as a basis for developing comprehensive digital servitization strategies to manage and leverage complexity in digital transformation.