Reviewing literature on digitalization, business model innovation, and sustainable industry : past achievements and future promises

Digitalization is revolutionizing the way business is conducted within industrial value chains through the use of Internet of Things (IoT) technologies, intensive data exchange and predictive analytics. However, technological application on its own is not enough; profiting from digitalization requires business model innovation such as making the transition to advanced service business models. Yet, many research gaps remain in analyzing how industrial companies can leverage digitalization to transform their business models to achieve sustainability benefits. Specifically, challenges related to value creation, value delivery, and value capture components of business model innovation need further understanding as well as how alignment of these components drive sustainable industry initiatives. Thus, this special issue editorial attempts to take stock of the emerging research field through a literature review and providing a synthesis of special issue contributions. In doing so, we contribute by developing a framework that communicates and sets the direction for future research by linking digitalization, business model innovation, and sustainability in industrial settings.fi=vertaisarvioimaton|en=nonPeerReviewed

Ecosystem transformation for digital servitization : A systematic review, integrative framework, and future research agenda

Manufacturing firms are increasingly seeking to capture the potential of digitalization by transforming towards digital servitization. Yet, most manufacturers struggle to realize the value through digital servitization because it requires a sustained focus on forming ecosystem partnerships. Digital servitization research has long recognized the importance of ecosystem tranformation but much of the existing discussion on this interlink is fragmented and understudied. Therefore, this study’s purpose is to investigate how manufacturing firms engaged in digital servitization transform their ecosystems. To this end, we have examined the triggers, firm-level enablers, ecosystem phases and activities, and effects of ecosystem transformation in digital servitization. We provide a comprehensive review of the phases of ecosystem transformation including ecosystem formation, orchestration, and expansion as well as their associated activities. These findings have been consolidated into an integrative framework for ecosystem transformation and, based on this analysis, suggestions for future research are provided for digital servitization scholars.© 2022 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)fi=vertaisarvioitu|en=peerReviewed

Digital servitization strategies for SME internationalization : the interplay between digital service maturity and ecosystem involvement

Purpose The purpose of this study is to understand how digital servitization enables the process of internationalization for industrial SMEs. Design/methodology/approach The present study has adopted an exploratory multiple case study, conducting a total of 40 interviews in a two-phased approach to data collection. The first phase consisted of exploratory interviews with twenty-six industrial SMEs connected to the manufacturing industry in Sweden and Finland. Then, six SMEs were selected in the second phase to participate in additional in-depth interviews. Findings First, this study identifies three gradual enabling phases concerned with the digital service maturity of SMEs consisting of digital awareness, digital service innovation and digital service mass customization. Second, the three interdependent phases of ecosystem knowledge synergy, ecosystem integration and ecosystem value co-creation were identified to improve ecosystem involvement. Finally, a process framework has been developed for SME internationalization consisting of a digital servitization innovation strategy, a digital servitization ecosystem strategy and a digital servitization scaling strategy. Originality/value The present research contributes to how digital servitization enables SME internationalization by demonstrating how the development of digital service offerings and ecosystem partnerships supports the internationalization process. This research extends the literature by proposing a process framework for the digital-servitization-enabled internationalization of SMEs. This process perspective provides a richer explanation of the complex interplay between servitization, digitalization and ecosystems choices, which supports the expansion into international markets.© Milad Kolagar, Wiebke Reim, Vinit Parida and David Sjödin. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcodeFunding: The authors gratefully acknowledge the contributors of funders which made this research possible: Vinnova, PiiA, Intereg Nord and Intereg Bothnia Atlantica.fi=vertaisarvioitu|en=peerReviewed

Coping with the relational paradoxes of outcome-based services

By entering outcome-based service (OBS) relationships, industrial service providers and their customers realign their business interests to achieve mutually beneficial outcomes. The move towards OBS represents a shift from transactional to relational interaction between the providers and their customers. Thus, the changed relationship is bound to envelop paradoxes – circumstances that involve competing demands where making tradeoffs can often be impossible. The purpose of this study is to explore such relational paradoxes in OBS relationships and how providers cope with them. An explorative case study approach reveals that the relational paradoxes are related to control, knowledge, dependency, and complexity. Subsequently, we developed a COPE framework consisting of four provider coping strategies: commitment, openness, partnerships, and extrication. Building on the logic of knotted paradoxes, we introduce a quatrefoil knot in which the found relational paradoxes are enmeshed. Finally, we show how different paradoxical tensions become salient at different phases of the OBS relationship while being reinforced by the latent paradoxes at the time. For managers, we disclose relational tensions and their temporal interplay and suggest strategies to cope with them.© 2022 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).fi=vertaisarvioitu|en=peerReviewed

Transforming provider-customer relationships in digital servitization : a relational view on digitalization

Digitalization is viewed as a source of future competitiveness due to its potential for unlocking new value-creation and revenue-generation opportunities. To profit from digitalization, providers and customers tend to move away from transactional product-centric model to relational service-oriented engagement. This relational transformation is brought about through digital servitization. However, current knowledge about how providers and customers transform their relationship to achieve benefits from digital servitization is lacking. This paper addresses that knowledge gap by applying the relational view theory to a study of four provider-customer relationships engaged in digital servitization. The results provide evidence for four relational components – complementary digitalization capabilities, relation-specific digital assets, digitally enabled knowledge-sharing routines, and partnership governance – that enable providers and customers to profit from digital servitization. A key contribution is the development of a relational transformation framework for digital servitization that provides an overview of how the four relational components evolve as the relationship progresses. In doing so, we contribute to the emerging servitization literature by offering key relational insights into the interdependence of activities throughout the transformation phases of provider-customer relationships in digital servitization.fi=vertaisarvioitu|en=peerReviewed

Literature review on industrial digital platforms : A business model perspective and suggestions for future research

Rapid digitalization of industries has led to the proliferation of complex industrial digital platforms; however, few industrial platform leaders have successfully established sustainable business models around their offerings. The need for a concrete definition of industrial digital platforms and their business models further complicates our understanding of the issue. In this prospecting review, we critically analyze the existing literature on industrial digital platforms to identify key research themes and research gaps and propose a future research agenda for the industrial digital platform literature from a business model perspective. Drawing on insights from research on industrial platforms, digitalization, digital servitization, and business-to-business (B2B) relationships, our analysis focuses on three key themes in defining the boundaries of industrial digital platforms and the crucial aspects of value creation, value delivery, and value capture on such platforms: (a) co-creative value creation, (b) digitally integrated value delivery, and (c) mutual value capture. The findings of this study and a future research agenda framework provide a roadmap for advancing the understanding of business models for industrial digital platforms. This research aims to contribute to the emerging field of industrial digital platforms and guide future research endeavors in this domain, unlocking the full potential of these platforms for businesses and industries.© 2023 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).fi=vertaisarvioitu|en=peerReviewed

A survey study of the transitioning towards high-value industrial product-services

Servitization literature suggests that traditional manufacturing companies are increasingly offering industrial services in order to increase their position in the global competition. However, little is known about extent and profit potential of different types of such offers in current industry. This paper offers an overview of such offers and concludes that maintenance based business models are most closely linked to increased revenue generation while add-on services have a negative effect. Future trends, suggest that business models such as R&D services and functional services will be increasingly important in the future.© 2014 Elsevier. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/3.0/).fi=vertaisarvioitu|en=peerReviewed

Win-Win collaboration, functional product challenges and value-chain delivery: A case study approach

Functional products (FPs) comprises of integrated hardware, software, and a service support system components that are bundled together to offer higher customer value and possibility to generate revenue. However, offering FPs requires forming and managing win-win collaboration with diverse global value-chain organizations. Based on twenty explorative interviews at two Swedish manufacturing companies, we specifically focus on the collaboration between FP provider and its value-chain delivery organizations. Our result shows that such collaborations can lead to win-lose or lose-win situations. Furthermore, we identify six diverse relational challenges which could negatively influence the collaboration between FP providers and their value-chain delivery organizations.© 2013 The Authors. Published by Elsevier B.V. Open access under CC BY-NC-ND license, https://creativecommons.org/licenses/by-nc-nd/3.0/fi=vertaisarvioimaton|en=nonPeerReviewed

Functional product business models : a review of the literature and identification of operational tactical practices

Offering functional products (FP) are beginning to emerge as a growing trend within industrial firms driven by the desire to achieve economic performance and sustainable resource management goals. Nevertheless, our knowledge about how companies can adopt and implement FP has remained limited. In this study, we conduct a systematic literature review related to FP business models and tactical practices to advance the understanding regarding FP implementation. Based on the in-depth analysis of 48 articles, we develop a framework that proposes a link between FP business models and tactics. We further link FP business models to five operational level tactics, which can ensure the degree of their implementation and value generation. The identified tactical sets are contract, marketing, network, product design, and sustainability aspects.©2014 Elsevier B.V. This is an open access article under the CC BY-NC-ND license http://creativecommons.org/licenses/by-nc-nd/3.0/fi=vertaisarvioitu|en=peerReviewed

Smart factory implementation and process innovation : a preliminary maturity model for leveraging digitalization in manufacturing moving to smart factories presents specific challenges that can be addressed through a structured approach focused on people, processes, and technologies

The development of novel digital technologies connected to the Internet of Things, along with advancements in artificial intelligence and automation, is enabling a new wave of manufacturing innovation. “Smart factories” will leverage industrial equipment that communicates with users and with other machines, automated processes, and mechanisms to facilitate real-time communication between the factory and the market to support dynamic adaptation and maximize efficiency. Smart factories can yield a range of benefits, such as increased process efficiency, product quality, sustainability, and safety and decreased costs. However, companies face immense challenges in implementing smart factories, given the large-scale, systemic transformation the move requires. We use data gathered from in-depth studies of five factories in two leading automotive manufacturers to analyze these challenges and identify the key steps needed to implement the smart factory concept. Based on our analysis, we offer a preliminary maturity model for smart factory implementation built around three overarching principles: cultivating digital people, introducing agile processes, and configuring modular technologies.fi=vertaisarvioitu|en=peerReviewed