Value-in-context for digital servitization

Purpose

Digital servitization (DS) is transforming value creation and appropriation for manufacturing firms. However, existing research predominantly focuses on dyadic relationships, overlooking possible dynamic, multi-actor interactions that shape servitization outcomes. This paper introduces the concept of DS value-in-context (DS-ViC) as a theory-driven explanation of how value aggregates and evolves across actors, governance structures and technological settings in digital servitization.

Design/methodology/approach

Building on a structured synthesis of prior research across digital servitization and multi-actor platform contexts, we develop a conceptual framework for understanding how value is created and appropriated through digital servitization in terms of DS-ViC.

Findings

DS value is not static but dynamically shaped by two spatio-temporal mechanisms: contextual value aggregation (spatial expansion across multiple actor settings at a specific point in time) and contextual value evolution (longer-term transformation of governance structures, actor roles and business models). The DS-ViC taxonomy comprises four forms of value contextualization: (1) lateral, (2) horizontal, (3) vertical and (4) intermediary contextualization. Each is shaped by distinct dynamic configurations of governance structures, platform control and data-driven learning mechanisms.

Originality/value

This study extends servitization research by offering a dynamic, multi-actor perspective on value creation and appropriation in DS. We introduce the concept of DS-ViC, which illustrates how digital servitized offerings aggregate value and reshape value across contexts and actors over time and space. By integrating service-dominant logic with platform governance theory, we develop a fourfold taxonomy of value contextualization and provide real-world examples of is manifestation. Managerial implications address issues such as pricing strategies, data-driven learning and role transitions in servitized settings associated with DS-ViC.