Unlocking digital servitization: A conceptualization of value co-creation capabilities

Industrial and service firms alike are increasingly adopting digital servitization to achieve service-driven growth and establish a competitive advantage. Firms must develop sufficient capabilities to benefit from digital servi-tization, which is an underinvestigated topic in the literature. This study contributes to bridging this gap by taking a service-dominant logic (SDL) perspective and focusing on value co-creation capabilities in B2B firms that offer digital service platforms and services based on them. It draws on a multiple-case study design involving leading cases from sectors such as manufacturing, engineering and shipping. The findings identify a set of four value co-creation capabilities: digital literacy, aligning, reflecting and coping. Moreover, this study highlights how these capabilities can facilitate value co-creation in the context of digital servitization initiatives. For managers, the findings provide insights into what characterizes value co-creation capabilities in digital servitization and why, how and when these capabilities are relevant.

Automated summary

Industrial and service firms are adopting digital servitization for service-driven growth and competitive advantage. Developing capabilities for digital servitization is an underexplored topic, which this study addresses through a service-dominant logic perspective. The study identifies four value co-creation capabilities and highlights their role in digital servitization initiatives. The findings provide insights for managers on the characteristics and relevance of value co-creation capabilities in the context of digital servitization.