Digital Product–Service Innovation and Sustainability: A Multiple-Case Study in the Capital Goods Industry

Abstract

Digitalisation, servitisation, and sustainability are keywords for the current and future development of the manufacturing industry. However, their interaction in the context of an organisation and its supply chain is unclear. This study examines how digital product–service innovation (PSI) or digital servitisation affects sustainability, considering the triple bottom line perspective, as well as identifies the underlying causes. Moreover, this study analyses the role played by supply-chain strategic collaboration, both internal and external to the company, in digital PSI and sustainability. Using a multiple-case study methodology and B2B market perspective, four companies belonging to the capital goods industry were analysed. Our findings indicate that digitalisation is leveraging both basic and advanced services in their impact on economic and environmental sustainability dimensions, while the results are limited in social sustainability. In addition, supply-chain integration is relevant for digital PSI. Internal integration is required for both basic and advanced services, while external integration is especially important in advanced services. We conclude by emphasising that companies should acquire digital capabilities to develop defensive and offensive business strategies that ultimately affect sustainability.

Toward Servitized Research: An Integrated Approach for Sustainable Product-Service Innovation

“…Most qualitative work follows only a few firms over a short period of time. For example, de la Calle et al [9] interviewed senior managers at four Basque companies over the course of a few weeks. And quantitative studies often only consider the correlation between different factors measured at one point in time.…”

“…For instance, Kohtamäki et al [137] defined different concepts to describe distinct inter-dependent systems (i.e., the value chain, value system, ecosystem, networks and platforms). These forms of collaboration are increasingly enabled by technology, and they also have been found to leverage companies' aggregate level of sustainability [9,88,138]. Though the MLMA approach is primarily intended for single firms, researchers can also use it for multiple firms working together, for instance by applying the same methodology within the same network or system.…”

“…The current body of servitization and sustainable PSI literature is built on many illustrative and comparative case studies, offering a thorough understanding of the context, content, process and outcomes of servitization [2,32]. For example, Bressanelli et al [8] conducted an in-depth case study of a household appliance company that implemented PSI to see how digital technology enables a circular economy transition, and de la Calle et al [9] looked at four capital goods companies to investigate how digital servitization affects sustainability. This type of qualitative research is useful for exploring new research topics, such as the congruence between PSI, digitalization and sustainability [9], and also for better understanding the microfoundations of PSI, such as the capabilities necessary to sustain enterprise performance [73].…”

“…Although the PSI research domain consists mostly of case-based studies, the need to integrate other research methods does not imply that researchers should discontinue visiting firms and conducting in-depth interviews. Qualitative research will always remain important for discovering new topics, such as the use of digital technologies in servitization [3,33] as well as their combined effect on sustainability [9] and for unravelling the subtle dynamics between different levels. For the mixed-methods approach that we suggest, researchers need to visit firms to fully understand their unique transition toward sustainable PSI, combined with a quantifiable assessment (see Section 3.2.…”

“…It is considered an economic megatrend that bolsters sustainability [6], as it covers a variety of business models whereby customers no longer attach importance to owning a product (e.g., light bulbs) but rather receiving a solution (e.g., light) [4,7]. Moreover, the application of digital technologies further enables firms in offering services that improve both economic and environmental sustainability [8,9], as smart combinations of service and technology reduce the consumption of natural resources and thus ecologically modernize industry [7]. For instance, in the automotive sector, a dual green-digital servitization strategy has been found to lead to better productivity outcomes and strengthen firms' competitiveness [10].…”