Digital servitization business models in ecosystems: A theory of the firm

TLDR

Digitalization transforms solution providers’ business models and shapes their firm boundary decisions as they develop digital solutions across organizational boundaries within ecosystems such as harbors, mines, and airports. This study extends the discussion of digital servitization business models by adopting the theory of the firm perspective and offers future research suggestions on these models within ecosystems. The authors employ a literature review and four theories of the firm—industrial organization, resource‑based view, organizational identity, and transaction cost—to analyze digital servitization business models in ecosystems. Digitalization impacts individual firms and necessitates alignment of business models across the ecosystem, underscoring the need to view digital servitization models from an ecosystem perspective.

Abstract

This study extends the discussion of digital servitization business models by adopting the perspective of the theory of the firm. We use four theories of the firm (industrial organization, the resource-based view, organizational identity, and the transaction cost approach) to understand digital servitization business models of firms in the context of ecosystems. Digitalization transforms the business models of solution providers and shapes their firm boundary decisions as they develop digital solutions across organizational boundaries within ecosystems such as harbors, mines, and airports. Thus, digitalization not only affects individual firms' business models but also requires the alignment of the business models of other firms within the ecosystem. Hence, business models in digital servitization should be viewed from an ecosystem perspective. Based on a rigorous literature review, we provide suggestions for future research on digital servitization business models within ecosystems.