Unraveling paradoxical tensions in digital servitization ecosystems: An analysis of their interrelationships from the technology provider's perspective

Abstract

Effective collaboration between manufacturers, technology providers, and customers is an issue of critical importance in digital servitization ecosystems. Nevertheless, creating and implementing smart solutions is complex and instigates paradoxical tensions among ecosystem actors, often leading to hurdles and possibly failures. Though recent studies have focused on identifying these tensions, a comprehensive understanding of their interrelationships is necessary. This study aims to identify the paradoxical tensions that exist among companies in digital servitization ecosystems as well as unravel their interrelationships. To address these objectives, we apply a multi-method approach. First, a systematic review of the literature reveals 16 paradoxical tensions arising from inter-firm collaboration. Next, based on interviews with academic and industry experts, we assess the relationships among these tensions. In particular, we focus on the perspective of technology providers due to their importance in delivering smart solutions. Finally, we apply Interpretive Structural Modelling (ISM) and fuzzy Matrices d'Impacts Croises Multiplication Appliqué a un Classement (MICMAC) to the experts' responses to define the interrelationships between the identified tensions and cluster them based on their driving and dependence power. We adopt a paradox theory lens to classify the identified tensions into four categories—i.e., learning, belonging, organizing, and performing—and provide a conceptual framework showing their cause-and-effect relationships. We reveal that paradoxical tensions in digital servitization ecosystems do not exist in isolation; rather, they are interconnected. Furthermore, we provide practical recommendations for managers to cope with such tensions as well as suggestions for future research.