Digital service orientation: unlocking servitization in service operations and service sales

Digital service orientation: unlocking servitization in service operations and service sales
Alexey Sklyar, David Sörhammar, Christian Kowalkowski, Bård Tronvoll
International Journal of Operations & Production Management, Vol. 45, No. 13, pp.117-139

Manufacturers increasingly harness digital technologies in their servitization efforts. However, the research has mainly focused on higher-level aspects of servitization, often overlooking the role of organizational routines at the firm-customer interface. This especially concerns two key customer-facing functions, service operations and service sales. This study explores how digital service orientation can be induced within these units’ organizational routines.

Survey data from 534 respondents (270 in service operations and 264 in service sales) from a market-leading manufacturing corporation implementing a digital service strategy were analyzed with a fuzzy-set qualitative comparative analysis (fsQCA).

The analysis uncovers alternative configurations of routine elements that induce digital service orientation in customer-facing units. These configurations combine four core routine elements: technology foresight, adaptability, agility, and rule-bending. Notably, distinct cross-functional patterns—assertive, responsive, and nimble—emerge across service operations and sales.

For managers, the cross-functional patterns offer a useful tool for inducing digital service orientation across customer-facing functions.

This exploratory study advances servitization research by identifying cross-functional patterns that induce digital service orientation. The findings reveal a surprising degree of homogeneity between service operations and sales, with greater alignment than previously assumed. This study also highlights the role of rule-bending in managing the often-overlooked tensions inherent in digital service strategies. Additionally, it points to a more limited role of customer focus, particularly in the context of intermediate services.

​Manufacturers increasingly harness digital technologies in their servitization efforts. However, the research has mainly focused on higher-level aspects of servitization, often overlooking the role of organizational routines at the firm-customer interface. This especially concerns two key customer-facing functions, service operations and service sales. This study explores how digital service orientation can be induced within these units’ organizational routines. Survey data from 534 respondents (270 in service operations and 264 in service sales) from a market-leading manufacturing corporation implementing a digital service strategy were analyzed with a fuzzy-set qualitative comparative analysis (fsQCA). The analysis uncovers alternative configurations of routine elements that induce digital service orientation in customer-facing units. These configurations combine four core routine elements: technology foresight, adaptability, agility, and rule-bending. Notably, distinct cross-functional patterns—assertive, responsive, and nimble—emerge across service operations and sales. For managers, the cross-functional patterns offer a useful tool for inducing digital service orientation across customer-facing functions. This exploratory study advances servitization research by identifying cross-functional patterns that induce digital service orientation. The findings reveal a surprising degree of homogeneity between service operations and sales, with greater alignment than previously assumed. This study also highlights the role of rule-bending in managing the often-overlooked tensions inherent in digital service strategies. Additionally, it points to a more limited role of customer focus, particularly in the context of intermediate services. Read More