When manufacturers turn into digital platform providers: A transformation model to understand the platformization pathway

Abstract

Platformization has arrived in manufacturing. However, to enter the digital platform business manufacturers need to make a fundamental shift from product thinking to platform thinking. To master this shift, firms have to take the platformization pathway, which describes the process when manufacturers turn into digital platform providers. However, little is known about platformization on the firm level from a transformation perspective. Our study attempts to close this gap and develops a transformation model that frames the platformization pathway when established manufacturers become platform leaders. For this purpose, we adopt the concept of ambidexterity and develop a theoretical framework to conceptualize and investigate the transformation process as a result of sequential transitions and balancing between explorative and exploitative activities. Moreover, we use interviews from 29 large manufacturers and conduct an inductive case study analysis to identify the different stages, the contextual factors and the dynamics of transformation. By combining the theoretical framework and the results of our case study analysis, we develop a formal transformation model that contributes to understanding the manufacturers' platformization pathway. Our results also aim to support manufacturers in designing their strategies so they can turn into leading digital platform providers.