Capabilities of digital servitization: Evidence from the socio-technical systems theory

Abstract

Driven by pressures for sustainable development and disruptions such as the COVID-19 pandemic, manufacturing companies in the 21st century are affected by two intertwined trends: Industry 4.0 and servitization. Digital servitization, which represents the transition from providing products to offering smart product-service systems, is currently seen as a black box by companies confronting them with major challenges. Current literature has not yet investigated which capabilities are required for the development and provision of smart PSSs. To address this gap, an exploratory multiple case study was performed using semi-structured interviews with 18 representatives of four manufacturing companies and six representatives of companies in a supporting role. A socio-technical systems perspective was adopted to cover the interconnectedness and complementarity of internal and external elements relevant for providing a smart PSS. The study identified 46 capabilities of digital servitization to offer and perform smart PSSs and systemically classified these within the dimensions of the socio-technical systems theory, thus providing companies with numerous insights into successful digital servitization. The results contribute to the practical and academic understanding of digital servitization by outlining capabilities to offer and perform smart PSSs and providing support for the use of socio-technical systems theory to frame these capabilities systematically.