Digital service innovation challenges faced during servitization: a multi-level perspective

Purpose: Digital Service innovation (DSI) plays a fundamental role in the successful transition from product manufacturer or traditional service provider to a provider of digitally-enabled service solutions. Multiple impediments make managing this transformation using digital technologies difficult for firms, their customers and wider ecosystems. Extant knowledge of these digital technology impediments requires synthesizing and mapping.

Design/methodology/approach: A systematic literature review (SLR) was conducted. DSI tools and terminology are synthesized via thematic analysis. Subsequently, impediments to DSI for servitization (covering barriers, challenges and tensions) faced by actors across three key innovation phases: strategic planning, design planning and implementation, and four interaction levels (Micro, Meso, Macro-environment, Macro-ecosystem) are mapped via template analysis.

Findings: Six impediment categories (external environmental factors, internal firm factors, capabilities, business models and processes, value creation and interaction) encompassing 28 unique impediment types to DSI during servitization are identified. A framework enabling impediment comparison across innovation phases and ecosystem/network interaction levels, revealing that the majority of barriers can be framed as “challenges” was developed.

Originality/value: Whilst literature is emerging relating to digital servitization, there is a lack of research on the role DSI plays in facilitating digital servitization and no comprehensive study of DSI impediments exists. Additionally, consensus around the cross-disciplinary terminologies used is lacking. This study is a structured attempt to map the domain, summarizing the terms, identifying and clarifying impediment categories and providing recommendations for researchers and managers in tackling the latter.