Mechanisms for developing operational capabilities in digital servitization

Momeni, Khadijeh, Raddats, Chris ORCID: 0000-0003-3206-4343 and Martinsuo, Miia (2023) Mechanisms for developing operational capabilities in digital servitization. INTERNATIONAL JOURNAL OF OPERATIONS & PRODUCTION MANAGEMENT, 43 (13). pp. 101-127.

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Official URL: http://dx.doi.org/10.1108/ijopm-04-2022-0259

Abstract

<jats:sec><jats:title content-type="abstract-subheading">Purpose</jats:title><jats:p>Digital servitization concerns how manufacturers utilize digital technologies to enhance their provision of services. Although digital servitization requires that manufacturers possess new capabilities, in contrast to strategic (or dynamic) capabilities, little is known about how they develop the required operational capabilities. The paper investigates the mechanisms for developing operational capabilities in digital servitization.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Design/methodology/approach</jats:title><jats:p>This paper presents an exploratory study based on 15 large manufacturers operating in Europe engaged in digital servitization.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Findings</jats:title><jats:p>Three operational capability development mechanisms are set out that manufacturers use to facilitate digital servitization: learning (developing capabilities in-house), building (bringing the requisite capabilities into the manufacturer), and acquiring (utilizing the capabilities of other actors). These mechanisms emphasize exploitation and exploration efforts within manufacturers and in collaborations with upstream and downstream partners. The findings demonstrate the need to combine these mechanisms for digital servitization according to combinations that match each manufacturer’s traditional servitization phase: (1) initial phase - building and acquiring, (2) middle phase - learning, building and acquiring, and (3) advanced phase - learning and building.</jats:p></jats:sec><jats:sec><jats:title content-type="abstract-subheading">Originality/value</jats:title><jats:p>This study reveals three operational capability development mechanisms, highlighting the parallel use of these mechanisms for digital servitization. It provides a holistic understanding of operational capability development mechanisms used by manufacturers by combining three theoretical perspectives (organizational learning, absorptive capacity, and network perspectives). The paper demonstrates that digital servitization requires the significant application of building and acquiring mechanisms to develop the requisite operational capabilities.</jats:p></jats:sec>

Item Type:	Article
Uncontrolled Keywords:	Acquiring, Building, Capability development mechanisms, Digital servitization learning, Operational capabilities, Traditional servitization
Divisions:	Faculty of Humanities and Social Sciences > School of Management
Depositing User:	Symplectic Admin
Date Deposited:	06 Mar 2023 11:34
Last Modified:	20 Apr 2023 01:20
DOI:	10.1108/IJOPM-04-2022-0259
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3168790