Exploring configurations of digital servitization capabilities for value creation: An fsQCA approach

Digital servitization is the process by which manufacturing firms transition from offering products to offering solutions that integrate products with services and digital technologies. Although previous studies have looked into the capabilities necessary for this transition, several topics need further exploration to advance the research field. The central issue is how digital servitization capabilities create value for the firm, followed by the need for a comprehensive and updated perspective on digital servitization capabilities to properly explain this relationship. Moreover, the effectiveness of different service delivery capabilities, the role of manufacturing capabilities in the offering of digital services, and how digital servitization capabilities evolve are topics that also need to be clarified. To address these issues, the present study developed a theoretical framework comprising four digital servitization capabilities (Integration, Provision, Orchestration, and Manufacturing) and conducted a multiple case study involving 24 Brazilian manufacturing firms. Employing a configurational approach, fuzzy-set Qualitative Comparative Analysis (fsQCA) was used to analyze the data. The findings reveal that two configurations of digital servitization capabilities enable value creation: Integration, Provision, and Manufacturing or; Integration, Orchestration, and Manufacturing. The study demonstrates that each configuration represents a different way of operationalizing the same digital servitization strategy, advancing the knowledge on the relationship between digital servitization and value creation. • The study explores the relationship between digital servitization and value creation. • A framework of the firm's digital servitization capabilities is proposed. • A multiple case study is conducted with Brazilian manufacturing firms. • The fsQCA is applied to identify configurations of capabilities for value creation. • The study reveals that two configurations of capabilities enable value creation.