Overcoming barriers to transformation in manufacturing firms. A path-dependence perspective of digital servitization

Abstract

Manufacturing firms struggle to break away from their pre-existing business models, offerings, routines, and capabilities. The present study used path dependency as a theoretical lens to investigate a single longitudinal case study of a leading manufacturing company based on in-depth interviews with senior executives and managers. The analysis contributes to extending the digital servitization and path-dependence literature by proposing four path-breaking mechanisms: (1) organizational reconfiguration, (2) reconfiguration of value offerings, (3) opportunity exploration, and (4) knowledge reconfiguration. The framework developed based on these mechanisms generated valuable insights for manufacturing firms seaking to to break away from their dominant paths.