IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v286y2025ics0925527325001434.html

Managerial practices shaping the transformation towards artificial intelligence-enabled product–service systems

Author

Listed:
  • Kohtamäki, Marko
  • Brekke, Thomas
  • Naeem, Rimsha
  • Sjödin, David
  • Parida, Vinit

Abstract

This study explores the management of the emergence of artificial intelligence (AI)-enabled product–service systems (PSS) that facilitate a manufacturer's transition toward autonomous solutions. We use a case study involving a leading manufacturer actively developing autonomous and integrated solutions while incorporating AI into product–service systems (PSS) from 2015 to 2022. The study contributes to the digital servitization literature in two ways. First, the study merges AI into product–service systems through a multi-layered path model, which includes layers such as AI-enabled PSS, AI-related PSS technologies, and AI-related PSS ecosystem partnerships. Second, the study identifies managerial practices of strategizing, evangelizing, and routinizing to create AI-enabled PSS, providing guidance for managers planning to merge AI into their product–service systems. The study outlines a research agenda for future AI-enabled PSS. Additionally, it gives managers a framework to understand how to pursue the transition journey.

Suggested Citation

  • Kohtamäki, Marko & Brekke, Thomas & Naeem, Rimsha & Sjödin, David & Parida, Vinit, 2025. "Managerial practices shaping the transformation towards artificial intelligence-enabled product–service systems," International Journal of Production Economics, Elsevier, vol. 286(C).
  • Handle: RePEc:eee:proeco:v:286:y:2025:i:c:s0925527325001434
    DOI: 10.1016/j.ijpe.2025.109658
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527325001434
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ijpe.2025.109658?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Eero Vaara & Janne Tienari, 2011. "On the narrative construction of multinational corporations : An antenarrative analysis of legitimation and resistance in a cross-border merger," Post-Print hal-02312572, HAL.
    2. Vandermerwe, Sandra & Rada, Juan, 1988. "Servitization of business: Adding value by adding services," European Management Journal, Elsevier, vol. 6(4), pages 314-324, December.
    3. Thomas Brekke & Sambit Lenka & Marko Kohtamäki & Vinit Parida & Birgit Andrine Apenes Solem, 2024. "Overcoming barriers to transformation in manufacturing firms. A path-dependence perspective of digital servitization," Review of Managerial Science, Springer, vol. 18(2), pages 385-412, February.
    4. Chowdhury, Soumyadeb & Ren, Shuang & Richey, Robert Glenn, 2025. "Leveraging artificial intelligence to facilitate green servitization: Resource orchestration and Re-institutionalization perspectives," International Journal of Production Economics, Elsevier, vol. 281(C).
    5. Kohtamäki, Marko & Parida, Vinit & Patel, Pankaj C. & Gebauer, Heiko, 2020. "The relationship between digitalization and servitization: The role of servitization in capturing the financial potential of digitalization," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    6. Canboy, Başak & Khlif, Wafa, 2025. "Beyond efficiency: Revisiting AI platforms, servitization and power relations from a critical perspective," International Journal of Production Economics, Elsevier, vol. 282(C).
    7. Ayala, Néstor Fabián & Rodrigues da Silva, Jassen & Cannarozzo Tinoco, Maria Auxiliadora & Saccani, Nicola & Frank, Alejandro G., 2025. "Artificial Intelligence capabilities in Digital Servitization: Identifying digital opportunities for different service types," International Journal of Production Economics, Elsevier, vol. 284(C).
    8. Cenamor, J. & Rönnberg Sjödin, D. & Parida, V., 2017. "Adopting a platform approach in servitization: Leveraging the value of digitalization," International Journal of Production Economics, Elsevier, vol. 192(C), pages 54-65.
    9. Huikkola, Tuomas & Kohtamäki, Marko & Ylimäki, Juho, 2022. "Becoming a smart solution provider: Reconfiguring a product manufacturer's strategic capabilities and processes to facilitate business model innovation," Technovation, Elsevier, vol. 118(C).
    10. Jia, Yibo & Cui, Li & Su, Jingqin & Wu, Lin & Akter, Shahriar & Kumar, Ajay, 2024. "Digital servitization in digital enterprise: Leveraging digital platform capabilities to unlock data value," International Journal of Production Economics, Elsevier, vol. 278(C).
    11. Baines, Tim & Ziaee Bigdeli, Ali & Sousa, Rui & Schroeder, Andreas, 2020. "Framing the servitization transformation process: A model to understand and facilitate the servitization journey," International Journal of Production Economics, Elsevier, vol. 221(C).
    12. Suvi Nenonen & Kaj Storbacka & Charlotta Windahl, 2019. "Capabilities for market-shaping: triggering and facilitating increased value creation," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 617-639, July.
    13. Paula Jarzabkowski, 2003. "Strategic Practices: An Activity Theory Perspective on Continuity and Change," Journal of Management Studies, Wiley Blackwell, vol. 40(1), pages 23-55, January.
    14. Richard Whittington, 2018. "Greatness Takes Practice: On Practice Theory’s Relevance to “Great Strategy”," Strategy Science, INFORMS, vol. 3(1), pages 343-351, March.
    15. Sjödin, David & Parida, Vinit & Kohtamäki, Marko, 2023. "Artificial intelligence enabling circular business model innovation in digital servitization: Conceptualizing dynamic capabilities, AI capacities, business models and effects," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    16. Kohtamäki, Marko & Parida, Vinit & Oghazi, Pejvak & Gebauer, Heiko & Baines, Tim, 2019. "Digital servitization business models in ecosystems: A theory of the firm," Journal of Business Research, Elsevier, vol. 104(C), pages 380-392.
    17. Bustinza, Oscar F. & Vendrell-Herrero, Ferran & Baines, Tim, 2017. "Service implementation in manufacturing: An organisational transformation perspective," International Journal of Production Economics, Elsevier, vol. 192(C), pages 1-8.
    18. Fosso Wamba, Samuel & Bawack, Ransome Epie & Guthrie, Cameron & Queiroz, Maciel M. & Carillo, Kevin Daniel André, 2021. "Are we preparing for a good AI society? A bibliometric review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    19. Tseng, Ming-Lang & Wu, Kuo-Jui & Chiu, Anthony SF. & Lim, Ming K. & Tan, Kimhua, 2019. "Reprint of: Service innovation in sustainable product service systems: Improving performance under linguistic preferences," International Journal of Production Economics, Elsevier, vol. 217(C), pages 159-170.
    20. Anastasia Tsvetkova & Magnus Hellström, 2022. "Creating value through autonomous shipping: an ecosystem perspective," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 24(2), pages 255-277, June.
    21. Burström, Thommie & Parida, Vinit & Lahti, Tom & Wincent, Joakim, 2021. "AI-enabled business-model innovation and transformation in industrial ecosystems: A framework, model and outline for further research," Journal of Business Research, Elsevier, vol. 127(C), pages 85-95.
    22. Kindström, Daniel & Kowalkowski, Christian & Sandberg, Erik, 2013. "Enabling service innovation: A dynamic capabilities approach," Journal of Business Research, Elsevier, vol. 66(8), pages 1063-1073.
    23. Hullova, Dusana & Laczko, Pavel & Frishammar, Johan, 2019. "Independent distributors in servitization: An assessment of key internal and ecosystem-related problems," Journal of Business Research, Elsevier, vol. 104(C), pages 422-437.
    24. Sklyar, Alexey & Kowalkowski, Christian & Tronvoll, Bård & Sörhammar, David, 2019. "Organizing for digital servitization: A service ecosystem perspective," Journal of Business Research, Elsevier, vol. 104(C), pages 450-460.
    25. Linus Thomson & Anmar Kamalaldin & David Sjödin & Vinit Parida, 2022. "A maturity framework for autonomous solutions in manufacturing firms: The interplay of technology, ecosystem, and business model," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 125-152, March.
    26. Hendricks, Leeya & Matthyssens, Paul & Kowalkowski, Christian, 2025. "The co-evolution of actor engagement and value co-creation on digital platforms," International Journal of Production Economics, Elsevier, vol. 279(C).
    27. Michael G. Jacobides & Carmelo Cennamo & Annabelle Gawer, 2018. "Towards a theory of ecosystems," Strategic Management Journal, Wiley Blackwell, vol. 39(8), pages 2255-2276, August.
    28. Kamalaldin, Anmar & Sjödin, David & Hullova, Dusana & Parida, Vinit, 2021. "Configuring ecosystem strategies for digitally enabled process innovation: A framework for equipment suppliers in the process industries," Technovation, Elsevier, vol. 105(C).
    29. Kohtamäki, Marko & Bhandari, Krishna Raj & Rabetino, Rodrigo & Ranta, Mikko, 2024. "Sustainable servitization in product manufacturing companies: The relationship between firm's sustainability emphasis and profitability and the moderating role of servitization," Technovation, Elsevier, vol. 129(C).
    30. Filosa, Clara & Jovanovic, Marin & Agostini, Lara & Nosella, Anna, 2025. "Pivoting B2B platform business models: From platform experimentation to multi-platform integration to ecosystem envelopment," International Journal of Production Economics, Elsevier, vol. 280(C).
    31. Farsi, Maryam & Erkoyuncu, John Ahmet, 2021. "An agent-based approach to quantify the uncertainty in Product-Service System contract decisions: A case study in the machine tool industry," International Journal of Production Economics, Elsevier, vol. 233(C).
    32. Sjödin, David & Liljeborg, Alexander & Mutter, Sermed, 2024. "Conceptualizing ecosystem management capabilities: Managing the ecosystem-organization interface," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    33. Palo, Teea & Åkesson, Maria & Löfberg, Nina, 2019. "Servitization as business model contestation: A practice approach," Journal of Business Research, Elsevier, vol. 104(C), pages 486-496.
    34. Sjödin, David & Parida, Vinit & Palmié, Maximilian & Wincent, Joakim, 2021. "How AI capabilities enable business model innovation: Scaling AI through co-evolutionary processes and feedback loops," Journal of Business Research, Elsevier, vol. 134(C), pages 574-587.
    35. Nicolas Haber & Mario Fargnoli, 2020. "The management of customer requirements in a product-service system context: a case study in the medical equipment sector," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 37(2), pages 145-169.
    36. Kohtamäki, Marko & Rabetino, Rodrigo & Einola, Suvi & Parida, Vinit & Patel, Pankaj, 2021. "Unfolding the digital servitization path from products to product-service-software systems: Practicing change through intentional narratives," Journal of Business Research, Elsevier, vol. 137(C), pages 379-392.
    37. Paul S. Adler, 2001. "Market, Hierarchy, and Trust: The Knowledge Economy and the Future of Capitalism," Organization Science, INFORMS, vol. 12(2), pages 215-234, April.
    38. Eero Vaara & Janne Tienari, 2011. "On the Narrative Construction of Multinational Corporations: An Antenarrative Analysis of Legitimation and Resistance in a Cross-Border Merger," Organization Science, INFORMS, vol. 22(2), pages 370-390, April.
    39. Frank, Alejandro G. & Mendes, Glauco H.S. & Ayala, Néstor F. & Ghezzi, Antonio, 2019. "Servitization and Industry 4.0 convergence in the digital transformation of product firms: A business model innovation perspective," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 341-351.
    40. Queiroz, Maciel M. & Lopes de Sousa Jabbour, Ana Beatriz & Bagherzadeh, Mehdi, 2025. "Crowdsourcing-enabled AI: Unlocking value in digital services," International Journal of Production Economics, Elsevier, vol. 283(C).
    41. Kohtamäki, Marko & Einola, Suvi & Rabetino, Rodrigo, 2020. "Exploring servitization through the paradox lens: Coping practices in servitization," International Journal of Production Economics, Elsevier, vol. 226(C).
    42. Bustinza, Oscar F. & Molina, Luis M. & Vendrell-Herrero, Ferran & Opazo-Basaez, Marco, 2024. "AI-enabled smart manufacturing boosts ecosystem value capture: The importance of servitization pathways within digital-intensive industries," International Journal of Production Economics, Elsevier, vol. 277(C).
    43. Guo, Jianfeng & Pan, Jiaofeng & Guo, Jianxin & Gu, Fu & Kuusisto, Jari, 2019. "Measurement framework for assessing disruptive innovations," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 250-265.
    44. Gebauer, Heiko & Fleisch, Elgar & Friedli, Thomas, 2005. "Overcoming the Service Paradox in Manufacturing Companies," European Management Journal, Elsevier, vol. 23(1), pages 14-26, February.
    45. Sjödin, David & Parida, Vinit & Kohtamäki, Marko & Wincent, Joakim, 2020. "An agile co-creation process for digital servitization: A micro-service innovation approach," Journal of Business Research, Elsevier, vol. 112(C), pages 478-491.
    46. Linda Rouleau, 2005. "Micro‐Practices of Strategic Sensemaking and Sensegiving: How Middle Managers Interpret and Sell Change Every Day," Journal of Management Studies, Wiley Blackwell, vol. 42(7), pages 1413-1441, November.
    47. Claudio Sassanelli & Tiziano Arriga & Stefano Zanin & Idiano D'Adamo & Sergio Terzi, 2022. "Industry 4.0 Driven Result-oriented PSS: An Assessment in the Energy Management," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 186-203, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ma, Jia & Xie, Tingting, 2025. "Customer artificial intelligence, supply chain spillover effects, and supplier capacity utilization," International Review of Economics & Finance, Elsevier, vol. 103(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shen, Lei & Sun, Wanqin & Parida, Vinit, 2023. "Consolidating digital servitization research: A systematic review, integrative framework, and future research directions," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    2. Kolagar, Milad & Parida, Vinit & Sjödin, David, 2022. "Ecosystem transformation for digital servitization: A systematic review, integrative framework, and future research agenda," Journal of Business Research, Elsevier, vol. 146(C), pages 176-200.
    3. Raja, Jawwad Z. & Neufang, Isabelle Fabienne & Frandsen, Thomas & Gölgeci, Ismail, 2024. "Working through frame incongruences: A process perspective on (re)framing for digital servitization," Technovation, Elsevier, vol. 129(C).
    4. Sjödin, David & Liljeborg, Alexander & Mutter, Sermed, 2024. "Conceptualizing ecosystem management capabilities: Managing the ecosystem-organization interface," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    5. Khanra, Sayantan & Dhir, Amandeep & Parida, Vinit & Kohtamäki, Marko, 2021. "Servitization research: A review and bibliometric analysis of past achievements and future promises," Journal of Business Research, Elsevier, vol. 131(C), pages 151-166.
    6. Rimsha Naeem & Marko Kohtamäki & Vinit Parida, 2025. "Artificial intelligence enabled product–service innovation: past achievements and future directions," Review of Managerial Science, Springer, vol. 19(7), pages 2149-2192, July.
    7. Chirumalla, Koteshwar & Leoni, Luna & Oghazi, Pejvak, 2023. "Moving from servitization to digital servitization: Identifying the required dynamic capabilities and related microfoundations to facilitate the transition," Journal of Business Research, Elsevier, vol. 158(C).
    8. Kohtamäki, Marko & Bhandari, Krishna Raj & Rabetino, Rodrigo & Ranta, Mikko, 2024. "Sustainable servitization in product manufacturing companies: The relationship between firm's sustainability emphasis and profitability and the moderating role of servitization," Technovation, Elsevier, vol. 129(C).
    9. Tian, Jiamian & Coreynen, Wim & Matthyssens, Paul & Shen, Lei, 2022. "Platform-based servitization and business model adaptation by established manufacturers," Technovation, Elsevier, vol. 118(C).
    10. Kohtamäki, Marko & Rabetino, Rodrigo & Einola, Suvi & Parida, Vinit & Patel, Pankaj, 2021. "Unfolding the digital servitization path from products to product-service-software systems: Practicing change through intentional narratives," Journal of Business Research, Elsevier, vol. 137(C), pages 379-392.
    11. Ayala, Néstor Fabián & Rodrigues da Silva, Jassen & Cannarozzo Tinoco, Maria Auxiliadora & Saccani, Nicola & Frank, Alejandro G., 2025. "Artificial Intelligence capabilities in Digital Servitization: Identifying digital opportunities for different service types," International Journal of Production Economics, Elsevier, vol. 284(C).
    12. Bustinza, Oscar F. & Opazo-Basaez, Marco & Tarba, Shlomo, 2022. "Exploring the interplay between Smart Manufacturing and KIBS firms in configuring product-service innovation performance," Technovation, Elsevier, vol. 118(C).
    13. Mosch, Philipp & Schweikl, Stefan & Obermaier, Robert, 2021. "Trapped in the supply chain? Digital servitization strategies and power relations in the case of an industrial technology supplier," International Journal of Production Economics, Elsevier, vol. 236(C).
    14. Zhou, Dan & Yan, Tingting & Dai, Weiqi & Feng, Junzheng, 2021. "Disentangling the interactions within and between servitization and digitalization strategies: A service-dominant logic," International Journal of Production Economics, Elsevier, vol. 238(C).
    15. Kohtamäki, Marko & Parida, Vinit & Oghazi, Pejvak & Gebauer, Heiko & Baines, Tim, 2019. "Digital servitization business models in ecosystems: A theory of the firm," Journal of Business Research, Elsevier, vol. 104(C), pages 380-392.
    16. Thomas Brekke & Sambit Lenka & Marko Kohtamäki & Vinit Parida & Birgit Andrine Apenes Solem, 2024. "Overcoming barriers to transformation in manufacturing firms. A path-dependence perspective of digital servitization," Review of Managerial Science, Springer, vol. 18(2), pages 385-412, February.
    17. Li, Huimin & Zhao, Jing & Cao, Yongchao & Su, Limin & Zhao, Zhichao & Zhang, Yafei, 2024. "Servitization and product service system: A literature review on value creation," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    18. Huikkola, Tuomas & Kohtamäki, Marko & Rabetino, Rodrigo & Makkonen, Hannu & Holtkamp, Philipp, 2022. "Overcoming the challenges of smart solution development: Co-alignment of processes, routines, and practices to manage product, service, and software integration," Technovation, Elsevier, vol. 118(C).
    19. Yong Chen & Zhengjie Wu & Wenchao Yi & Bingjia Wang & Jianhua Yao & Zhi Pei & Jiaoliao Chen, 2022. "Bibliometric Method for Manufacturing Servitization: A Review and Future Research Directions," Sustainability, MDPI, vol. 14(14), pages 1-26, July.
    20. Serena Galvani & Elisa Carloni & Roberta Bocconcelli & Alessandro Pagano, 2022. "From After-Sales to Advanced Services: A Network Analysis on the Impacts of Digital Servitization Evolution," Sustainability, MDPI, vol. 14(14), pages 1-19, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:286:y:2025:i:c:s0925527325001434. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.