Intra- and inter-organizational tensions of a digital servitization strategy. Evidence from the mechatronic sector in Italy

Abstract

Purpose: This paper aims to analyze the digital servitization (DS) process with the paradox theory lens. The purpose is to catch how intra- and inter-organizational tensions generate complexity along a DS journey to find “where” and “when” industrial companies can intervene to face them. Design/methodology/approach: The methodology is a qualitative, in-depth single case study, which longitudinally explores the DS strategy of a manufacturer along with three phases of development: design, implementation and assessment. Findings: The analysis reveals six intra- and inter-organizational tensions in DS and provides insights on tensions’ origin and how to face them. A theoretical framework on DS complexity and an empirical framework on tensions’ origin is produced. Originality/value: The research combines service and organizational paradox literature. Together with a longitudinal methodology, it results in a spatial and temporal analysis of DS, from which theoretical and managerial implications are drawn.