The effects of digital servitization on business competitiveness: A case study of Spanish manufacturers

Abstract

In recent years, interest has grown in servitization strategies as business models for selling combined packages of goods and services to create competitive advantage to provide great customer value. Various studies have examined the benefits servitization offers to both businesses and their customers; however, there is very little research on the moderating role played by the digital enablers of Industry 4.0 on servitization. It is this research gap that the present study aims to fill. Using a framework developed from the extant literature, case studies, with an exploratory objective, were conducted to the aim of identifying and analyzing the challenges and opportunities that could be presented in those companies that decide to develop digital servitization. To achieve it, this study focuses on a deep analysis of the experience in five manufacturing companies, and, from that, we draw significant conclusions (both for further research and for business practice) about the strategy of servitization and the moderating role of Industry 4.0 on business competitiveness. We first carried out detailed interviews with key personnel from companies, complementing that with additional information from various sources before analyzing the results to identify emerging topics. The qualitative study allowed us to highlight how the different kinds of digital technologies supported servitization and product innovation. In addition, it provides empirical evidence about the different servitization strategies and Industry 4.0 digital enablers, which, in combination, allows companies achieving increased competitiveness, generate greater returns, find new customers, access new markets, and develop new business ideas.