Complexity in a platform-based servitization: a complex adaptability theory perspective

Abstract

This paper aims to investigate the impacts of a platform-based servitization process on system complexity and how the characters of internal complexity further affects system adaptability. We adopt complex adaptive system (CAS) theory as a theoretical lens to address these two issues by conducting a multiple case study. Three leading enterprises with digital platform-based servitization, i.e. JD.com, Siemens, and Alibaba, are chosen as our case companies. This research proposes a conceptual framework through case analysis and identifies the relationships among servitization, internal complexity, supply chain resilience (SCR), and vulnerability (SCV). Specifically, our study illustrates how service modularity, platform development and digitalisation affect the system complexity. More importantly, we demonstrate a mechanism of improving system adaptability through pursing the balance between SCR and SCV.