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Linking Digital Servitization and Industrial Sustainability Performance: A Configurational Perspective on Smart Solution Strategies
Luleå University of Technology, Department of Social Sciences, Technology and Arts, Business Administration and Industrial Engineering. Faculty of Technology, Policy and Management, TU Delft, 2628 CD Delft, Netherlands.ORCID iD: 0000-0002-6524-0975
Luleå University of Technology, Department of Social Sciences, Technology and Arts, Business Administration and Industrial Engineering. University of Vaasa, 65200 Vaasa, Finland; University of South-Eastern Norway, 3679 Vestfold, Norway.ORCID iD: 0000-0003-3255-414X
Luleå University of Technology, Department of Social Sciences, Technology and Arts, Business Administration and Industrial Engineering. University of South-Eastern Norway, 3679 Vestfold, Norway.ORCID iD: 0000-0001-5464-2007
2024 (English)In: IEEE transactions on engineering management, ISSN 0018-9391, E-ISSN 1558-0040, Vol. 71, p. 7743-7755Article in journal (Refereed) Published
Abstract [en]

Manufacturing companies are introducing innovative ways to facilitate the sustainable transition of their customers’ operations. The emerging literature on digital servitization proposes numerous factors, such as the use of advanced artificial intelligence analytics, orientation toward outcomes, and aligning ecosystem partnerships, which can potentially influence the sustainable performance of industrial customers. However, there is currently a lack of understanding regarding how these factors interact to result in sustainable outcomes. Hence, this study seeks to shed light on these complex relationships by identifying viable smart solution strategy configurations for achieving customer sustainable performance. Drawing on a dataset of 180 Swedish manufacturing firms, this study uses a configurational comparative method—namely, fuzzy-set qualitative comparative analysis—to identify the impact of different configurations of “AI-driven optimization,” “outcome orientation,” “value co-creation,” and “ecosystem orchestration” conditions on the realization of customer sustainable performance. This study has identified five smart solution strategies that empower manufacturers to realize sustainable performance for their customers. Among the five configurational strategies identified, the first configurational strategy appears to be the most prominent, as it is based on an outcome-based approach in which the firm uses its technological expertise and its ecosystem partnerships to take over customer operations. Thus, this study contributes to the ongoing discussion in digital servitization on its enabling role for industrial sustainability practices.

Place, publisher, year, edition, pages
IEEE, 2024. Vol. 71, p. 7743-7755
Keywords [en]
Artificial intelligence (AI)-driven optimization, digital servitization, ecosystem orchestration, industrial sustainability, smart solutions
National Category
Business Administration Production Engineering, Human Work Science and Ergonomics
Research subject
Entrepreneurship and Innovation
Identifiers
URN: urn:nbn:se:ltu:diva-102376DOI: 10.1109/TEM.2024.3383462ISI: 001204996100005Scopus ID: 2-s2.0-85190168274OAI: oai:DiVA.org:ltu-102376DiVA, id: diva2:1811033
Funder
VinnovaSwedish Research Council Formas, 2020-01791
Note

Validerad;2024;Nivå 2;2024-04-22 (hanlid);

Full text license: CC BY

Available from: 2023-11-10 Created: 2023-11-10 Last updated: 2025-10-21Bibliographically approved
In thesis
1. Ecosystem Orchestration within Digital Servitization: A Path towards Sustainable Industry
Open this publication in new window or tab >>Ecosystem Orchestration within Digital Servitization: A Path towards Sustainable Industry
2023 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The development of new digital technologies is enabling manufacturing firms to transition from their traditional product-centric approaches to a more sophisticated service-oriented model, known as “digital servitization”. Moreover, this convergence between digitalization and servitization can provide innovative ways of reducing environmental footprints and enhancing social impact, while preserving firms' economic viability. Digital servitization can, therefore, be considered one of the pathways to bringing sustainable benefits to the manufacturing industry. Nevertheless, digital servitization is a challenging endeavor because it involves the transformation of digital infrastructures, the implementation of formal governance principles, and the close interactions between firms. Since only a few individual firms can claim to have all the technological resources and capabilities necessary to create and deliver digital services and solutions, multiple actors are required to work together in so-called innovation ecosystems to reap the benefits of digital servitization. This highlights the importance of transforming ecosystems and establishing cooperative collaboration between diverse actors to facilitate the formation, orchestration, and expansion of ecosystems over time. Similarly, ecosystem orchestration and managing complex collaborations to realize the ecosystem vision have been proven to be the most challenging aspects of this transformation within the context of digital servitization. Despite the growing interest in ecosystem orchestration in research and practice, there is still a lack of knowledge about how this process can be conducted within the context of digital servitization. Therefore, the purpose of this thesis is to advance understanding of how ecosystems can be orchestrated within digital servitization to realize a more sustainable industry.

Featuring a cover story and four separate but interrelated papers, this thesis uses a variety of different methodological approaches to advance understanding and knowledge of ecosystem orchestration for the co-creation of digitally enabled advanced services and solutions. As a result of conducting a systematic literature review, Paper 1 provides the foundation for the remaining studies. Following this, Papers 2 and 3 adopt a qualitative case study approach to contribute to the empirical aspect of the thesis. Furthermore, Paper 4 adopts a mixed-method approach (fsQCA) to fill the gap of scarce quantitative and hybrid methods in the digital servitization literature.

As a contribution to the emerging literature on digital servitization, this thesis proposes a framework for how firms can orchestrate their ecosystems in digital servitization in order to achieve sustainable industry benefits. The framework outlines three major building blocks of activities that industrial firms perform in order to orchestrate their ecosystem in digital servitization. These blocks of activities are undertaken to support: 1) digital value architecture, 2) the contractual governance mechanism, and 3) relational ecosystem governance. Moreover, it extends the discussion on how these building blocks interact and co-evolve for ecosystem orchestration to occur in the digital servitization context in order to achieve sustainable industry outcomes.

Place, publisher, year, edition, pages
Luleå: Luleå University of Technology, 2023
Series
Doctoral thesis / Luleå University of Technology 1 jan 1997 → …, ISSN 1402-1544
National Category
Business Administration
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-102383 (URN)978-91-8048-438-1 (ISBN)978-91-8048-439-8 (ISBN)
Public defence
2024-01-31, A109, Luleå tekniska universitet, Luleå, 09:00 (English)
Opponent
Supervisors
Available from: 2023-11-10 Created: 2023-11-10 Last updated: 2025-10-21Bibliographically approved

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