Barriers and opportunities of digital servitization for SMEs: the effect of smart Product-Service System business models

Abstract

Digital servitization enables SMEs to propose smart Product-Service Systems (PSS) integrating products and services. Limited discussion of this contemporary and challenging phenomena stimulated our in-depth literature review, which identified four key themes common to both barriers and opportunities: digital strategy, ecosystem network, internal and operational organization, and human capabilities. Industry expert focus group enabled enriching and refining these themes across smart PSS business models. Digital servitization was found to mostly benefit the SME’s digital strategy and ecosystem network and is hindered by insufficient human capabilities and underdeveloped ecosystem networks. Opportunities and barriers vary as the smart PSS business model evolves.