Browsing by Subject "Service transformation"

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Cultural change in servitization
(2025) Biesinger, Benjamin; Hadwich, Karsten
Manufacturers are increasingly transforming into industrial service providers. Driven by product commoditization and rapid technology cycles, they increasingly compete on value delivered to customers by shifting their business model to integrated solutions with advanced services. The phenomenon coined servitization can be a powerful engine for manufacturers to grow beyond their traditional product business. Since product and service businesses operate on a fundamentally different logic, servitization requires changes in manufacturers’ deep-rooted organizational beliefs, values and behaviors. Accordingly, creating a culture that supports servitization is critical. Cultural change is widely recognized in servitization research but remains poorly understood. While literature increasingly contributes to understanding “what” values and behaviors that support servitization, insights into “how” change processes shape servitization cultures remain limited. Aiming to support academics and practitioners addressing cultural change in servitization, this dissertation examines how manufacturers change their organizational culture as they transform into industrial service providers and the practices that facilitate the change process. Section 1 presents an overview of industrial and academic perspective on the challenges of cultural change in servitization. Content challenges involve conceptualizing the multiple layers of servitization culture, synthesizing existing concepts and constructs, and expanding digital and learning culture frameworks. Process challenges focus on integrating organizational and sociocognitive theories while identifying holistic change practices. Context challenges center on understanding the role of service-driven mergers and acquisitions, digital technologies and ecosystems, and the transformative shift toward resilience and sustainability. Building on these academic challenges, the section concludes by outlining the dissertation’s aims and structure to address them. Section 2, “Cultural change in servitization – a conceptual review and framework,” concerns the content and process of social construction as servitizing manufacturers change their culture. The article integrates organizational and sociopsychological theories to develop an organizational learning framework for cultural change, explaining the emergence and interaction of organizational and member-level concepts. Second, the framework guides a systematic literature review to integrate fragmented knowledge on cultural change in servitization and establish conceptual order. The article presents 12 propositions, revealing three major cultural orientations (service, digital and learning) and offering guidance for managing organizational and member-level change. Section 3, “The role of strategic and learning orientation in creating competitive advantage through digital service innovation,” concerns fostering organizational learning to drive digital service innovation. The conceptual article integrates recent advances in digital servitization and organizational learning within the resource-based and dynamic capabilities view. It challenges prior assumptions in the field by conceptualizing learning orientation as a moderator of strategic digital, service and innovation orientation to drive servitization performance. The article presents four propositions on the cultural antecedents and conditions, offering guidance for change management to achieve competitive advantage and resilience through digital service innovation. Section 4, “Path towards servitization culture: Unveiling the organizational learning practices to support the cultural change from product manufacturing to independent service provision,” concerns a manufacturer’s cultural change to become a leading independent service provider through service-driven M&A, internationalization and corporate restructuring. The article gathers data from interviews and company documents to obtain a dynamic view of cultural change in servitization. The in-depth, long-term single case study identifies three cultural streams permeating culture during the transformation: independent service orientation, customer orientation and entrepreneurial learning orientation. The organizational learning practices to freeze the emerging ISP culture, rebalance the global ISP culture and unfreeze the ISP learning culture offer guidance for managing continuous change processes. Section 5 provides a concluding analysis of the articles, deriving theoretical contributions, practical implications and a future research agenda. From a theoretical perspective, this dissertation introduces organizational learning as a framework to explore the emergent and human aspects of change in servitization and conceptualizes the servitization culture. Moreover, it extends the notion of continuous change, interorganizational change and servitization culture as a transformative response to technological and societal disruption. For practitioners, this research integrates its findings with prescriptive models of learning organizations to formulate principles for strategies and practices that support the creation of a servitization culture. The research agenda focuses on advancing research on servitization culture in Industry 5.0, extending multilevel research and introducing configuration and intervention as a research strategy for cultural change in servitization.