IDEAS home Printed from https://ideas.repec.org/a/spr/rvmgts/v18y2024i2d10.1007_s11846-023-00641-0.html
   My bibliography  Save this article

Overcoming barriers to transformation in manufacturing firms. A path-dependence perspective of digital servitization

Author

Listed:
  • Thomas Brekke

    (Universitiy of South-Eastern Norway)

  • Sambit Lenka

    (Jönköping International Business School)

  • Marko Kohtamäki

    (Universitiy of South-Eastern Norway
    Luleå University of Technology, Sweden
    University of Vaasa)

  • Vinit Parida

    (Universitiy of South-Eastern Norway
    Luleå University of Technology, Sweden)

  • Birgit Andrine Apenes Solem

    (Universitiy of South-Eastern Norway)

Abstract

Manufacturing firms struggle to break away from their pre-existing business models, offerings, routines, and capabilities. The present study used path dependency as a theoretical lens to investigate a single longitudinal case study of a leading manufacturing company based on in-depth interviews with senior executives and managers. The analysis contributes to extending the digital servitization and path-dependence literature by proposing four path-breaking mechanisms: (1) organizational reconfiguration, (2) reconfiguration of value offerings, (3) opportunity exploration, and (4) knowledge reconfiguration. The framework developed based on these mechanisms generated valuable insights for manufacturing firms seaking to to break away from their dominant paths.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:rvmgts:v:18:y:2024:i:2:d:10.1007_s11846-023-00641-0
    DOI: 10.1007/s11846-023-00641-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11846-023-00641-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11846-023-00641-0?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 search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. Rodolphe Durand & Jean-Philippe Vergne, 2011. "The Path of Most Persistence: An Evolutionary Perspective on Path Dependence and Dynamic Capabilities," Post-Print hal-00583118, HAL.
    4. Mouzas, Stefanos, 2022. "What drives business transformation? Evidence from manufacturer-retailer networks," Journal of Business Research, Elsevier, vol. 143(C), pages 282-293.
    5. Hou, Hong & Shi, Yongjiang, 2021. "Ecosystem-as-structure and ecosystem-as-coevolution: A constructive examination," Technovation, Elsevier, vol. 100(C).
    6. Sascha Kraus & Norat Roig-Tierno & Ricarda B. Bouncken, 2019. "Digital innovation and venturing: an introduction into the digitalization of entrepreneurship," Review of Managerial Science, Springer, vol. 13(3), pages 519-528, June.
    7. Geels, Frank W., 2004. "From sectoral systems of innovation to socio-technical systems: Insights about dynamics and change from sociology and institutional theory," Research Policy, Elsevier, vol. 33(6-7), pages 897-920, September.
    8. 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.
    9. Raghu Garud & Arun Kumaraswamy & Peter Karnøe, 2010. "Path Dependence or Path Creation?," Journal of Management Studies, Wiley Blackwell, vol. 47(4), pages 760-774, June.
    10. Bohnsack, René & Pinkse, Jonatan & Kolk, Ans, 2014. "Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles," Research Policy, Elsevier, vol. 43(2), pages 284-300.
    11. Suarez, Fernando F., 2004. "Battles for technological dominance: an integrative framework," Research Policy, Elsevier, vol. 33(2), pages 271-286, March.
    12. Ricarda B. Bouncken & Sascha Kraus & Norat Roig-Tierno, 2021. "Knowledge- and innovation-based business models for future growth: digitalized business models and portfolio considerations," Review of Managerial Science, Springer, vol. 15(1), pages 1-14, January.
    13. 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.
    14. 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.
    15. B. Demil & X. Lecocq, 2010. "Business model evolution : in search of dynamic consistency," Post-Print hal-00572915, HAL.
    16. 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).
    17. 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.
    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. Tang, Ryan W. & Wang, Yi, 2025. "The length of historical path and the digitalization speed of record labels: A path dependence perspective," Journal of Business Research, Elsevier, vol. 189(C).
    2. Liu, Chuanhui & Sheng, Zhongyuan & Hu, Xuetong & Tian, Chunxiao, 2025. "Hand in hand or left behind: The dual impact of leading firms’ digital technologies on industry digital transformation," The North American Journal of Economics and Finance, Elsevier, vol. 75(PA).

    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. 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.
    3. 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.
    4. 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.
    5. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    6. Miehé, Lucas & Palmié, Maximilian & Oghazi, Pejvak, 2023. "Connection successfully established: How complementors use connectivity technologies to join existing ecosystems – Four archetype strategies from the mobility sector," Technovation, Elsevier, vol. 122(C).
    7. 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).
    8. Thomson, Linus & Sjödin, David & Parida, Vinit & Jovanovic, Marin, 2023. "Conceptualizing business model piloting: An experiential learning process for autonomous solutions," Technovation, Elsevier, vol. 126(C).
    9. Yan Chen & Zijin Wang & Jaime Ortiz, 2023. "A Sustainable Digital Ecosystem: Digital Servitization Transformation and Digital Infrastructure Support," Sustainability, MDPI, vol. 15(2), pages 1-16, January.
    10. 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.
    11. Rantala, Tero & Ukko, Juhani & Nasiri, Mina & Saunila, Minna, 2023. "Shifting focus of value creation through industrial digital twins—From internal application to ecosystem-level utilization," Technovation, Elsevier, vol. 125(C).
    12. 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).
    13. Bohnsack, René & Kurtz, Hannes & Hanelt, André, 2021. "Re-examining path dependence in the digital age: The evolution of connected car business models," Research Policy, Elsevier, vol. 50(9).
    14. Sven M. Laudien & Birgit Daxböck, 2016. "Path dependence as a barrier to business model change in manufacturing firms: insights from a multiple-case study," Journal of Business Economics, Springer, vol. 86(6), pages 611-645, August.
    15. 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).
    16. Wesseling, Joeri H. & Bidmon, Christina & Bohnsack, René, 2020. "Business model design spaces in socio-technical transitions: The case of electric driving in the Netherlands," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    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. Chankook Park, 2022. "Expansion of servitization in the energy sector and its implications," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 11(4), July.
    20. 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.

    More about this item

    Keywords

    Digital transformation; Path dependence; Autonomous solutions; Digital servitization; Product–service systems (PSS); Manufacturing company; Digitalization; Organizational change;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

    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:spr:rvmgts:v:18:y:2024:i:2:d:10.1007_s11846-023-00641-0. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.