Digitalization strategy in service ecosystems: managing the interplay of tensions and empowerment

Purpose This study conceptualizes how the implementation of digitalization strategy acts as both an enabler and a catalyst for tensions within service ecosystems. It adopts a holistic, multi-actor perspective to articulate the complexity of ecosystem orchestration in the digital era. Research Design This study develops a conceptual model building on theoretical discussions regarding inter-organizational tensions and empowerment, synthesizing the implications of four critical aspects of digitalization strategies: digital resources, information architecture, digital platforms, and corporate digital responsibility. Findings The conceptual model illustrates that digitalization strategies enable value creation via resource and structural empowerment while simultaneously generating structural, psychological, and behavioral tensions. The study posits that the interplay between empowerments and tensions shapes governance and investment decisions, which influence how firms and their business partners collaboratively orchestrate service ecosystems when implementing new digitalization strategies. Originality This research develops a comprehensive conceptual model elucidating how different aspects of digitalization strategies act as both an enabler and a catalyst for tension within service ecosystems. A key theoretical contribution lies in identifying the strategic alignment between empowerment mechanisms and emerging tensions as the central mechanism for the digital transformation of service ecosystems. This perspective reframes strategy implementation as a continuous and iterative process of achieving and reinforcing this alignment. Furthermore, the study extends the literature on corporate digital responsibility by positioning it as a critical factor across the wider ecosystem rather than an initiative by a single firm.