An organisational change framework for digital servitization: Evidence from the Veneto region

Abstract

Product firms implementing integrated product/service solutions through in-house development must have a long-term commitment to the project and focus on enhancing their resource base and strategic agility. Our results confirm the importance of organizational capabilities and strong firm commitment to the development of integrated solutions. While previous studies have demonstrated the importance of the service business unit’s configuration, this article identifies critical variables (the firm’s strategic agility and capability) that influence make-or-buy decisions. Agility is a prerequisite for digital organizational transformation, and our results corroborate that weak firm agility is closely linked to the need for external development of integrated solutions.