Small and medium-sized
manufacturers’ ways of involving
suppliers in digitally-enabled services
Beheshte Momeni
School of Management, University of Vaasa, Vaasa, Finland
Miia Martinsuo
Faculty of Technology, University of Turku, Turku, Finland, and
Jaakko H€ark€al€a
Tampere University, Tampere, Finland
Abstract
Purpose – Information technology (IT) suppliers play a crucial role in shaping digitally-enabled services in
small and medium-sized enterprises (SMEs) in the manufacturing sector, addressing limitations such as limited
resources, a lack of digital expertise and financial constraints. This study investigates howmanufacturing SMEs
involve IT suppliers in digitally-enabled service offerings.
Design/methodology/approach – This paper investigates six manufacturing SMEs involving suppliers in
digitally-enabled services. Data were collected via 20 in-depth interviews.
Findings – This study identifies SMEs’ sensing capabilities influencing their digitally-enabled services,
including responding to industry and market demands, assessing customer readiness, developing responses to
crises, and understanding IT suppliers’ offerings and capabilities. Three clusters of SMEs are introduced:
operational efficiency seekers, service growth seekers and service-centric SMEs, based on their seizing
capability through analyzing how different SMEs position services within the business strategy, allocate and
manage service resources and build and leverage digital capabilities and readiness. These differ in how they
involve IT suppliers: operational involvement, innovation collaboration and strategic partnership.
Originality/value –This research illuminates how digitally-enabled services and ITsupplier involvement differ
in SME environments. Analysis of SMEs’ digitally-enabled services and capabilities prompts a novel
three-cluster framework. The findings unveil how manufacturing SMEs involve IT suppliers in digital
servitization as it relates to the SMEs’ dynamic capabilities.
KeywordsManufacturing SMEs, Digitally-enabled services, Supplier involvement, IT suppliers
Paper type Research paper
Quick value overview
Interesting because - IT suppliers play a crucial role in shaping digitally-enabled services in
manufacturing SMEs, addressing limitations such as limited resources, a lack of digital
expertise, and financial constraints. Previous studies have focused on largemanufacturers and
their conventional supply chains and have primarily emphasized the similarities among SMEs
in terms of challenges and opportunities in offering digitally-enabled services, neglecting the
inherent variations among SMEs. While research highlights the importance of SME–IT
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© Beheshte Momeni, Miia Martinsuo and Jaakko H€ark€al€a. Published by Emerald Publishing Limited.
This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may
reproduce, distribute, translate and create derivative works of this article (for both commercial and non-
commercial purposes), subject to full attribution to the original publication and authors. The full terms of
this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode
The authors would like to thank the anonymous reviewers who provided many insightful comments.
to help improve this paper. The authors would also like to thank Tampere University research group
CROPS (Center for Research on Project and Service Business) for their collegial support and inspiring
atmosphere during the data collection phase of this research. Part of this research was conducted through
the “Development of adaptable integration mechanisms for data-enabled service operations in industrial
networks” research project. The financial support of the Academy of Finland is gratefully acknowledged.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1741-038X.htm
Received 10 January 2024
Revised 11 May 2024
15 August 2024
22 October 2024
14 November 2024
Accepted 4 December 2024
Journal of Manufacturing Technology
Management
Vol. 36 No. 9, 2025
pp. 45-68
Emerald Publishing Limited
e-ISSN: 1758-7786
p-ISSN: 1741-038X
DOI 10.1108/JMTM-01-2024-0025
supplier collaboration to digitally-enabled services, little is known about how SMEs involve
IT suppliers in digitally-enabled services. This study provides a three-cluster framework
reflecting manufacturing SMEs’ internal resources and capabilities and unveils how these
SMEs utilize their IT suppliers’ expertise despite their inherent limitations, such as scarcity of
resources and digital expertise.
Theoretical value - The study found how manufacturing SMEs involve IT suppliers in
digital servitization as it relates to the SMEs’ dynamic capabilities. Accordingly, the study
identifies distinct ways SMEs involve IT suppliers in digitally-enabled services, each with
different outcomes.
Practical value - SME managers should understand how the business environment drives
digital servitization to position their companies effectively. Identifying the firm as an
efficiency seeker, service growth seeker, or service-centric helps align resources and
capabilities with strategic goals. Selecting the appropriate level of IT supplier involvement—
whether focusing on process optimization or forming strategic partnerships—supports
innovation, growth, and long-term success in digital transformation.
1. Introduction
Manufacturers’ shift from product-centric business models to those emphasizing value-added
services is reshaping the traditional boundaries of manufacturers. The ongoing digital
servitization trend enables manufacturers to offer more value-added services through
technologies such as the Internet of Things (IoT), intelligent automation, and digital platforms
(Agarwal et al., 2022), and we refer to these as digitally-enabled services (Schroeder et al.,
2020). Digital servitization requires manufacturers to develop new capabilities (Coreynen
et al., 2017) and reconfigure resources, organizational structures, work practices, and cultures,
which necessitates collaboration with external actors and changes to the manufacturers’
ecosystem (Sklyar et al., 2019). Such collaboration in digital servitization offers benefits, such
as enhanced value creation (Lin et al., 2024), but also presents challenges related to data
management, customer needs (Lin et al., 2024), and organizational shifts (Peillon andDubruc,
2019). The impact of collaboration on the digital servitization process is evident in the
development of operational capabilities (Momeni et al., 2023) and service innovation (Sj€odin
et al., 2020). However, manufacturers do not adopt a single collaboration approach with
external actors to implement digitally-enabled services (Dalenogare et al., 2023).
Previous digital servitization studies focused on large firms (Trabert et al., 2024); however,
offering services is even more crucial for SMEs that rely on the continuity of customer
relationships to maintain competitiveness (Gebauer et al., 2010). Resource limitations often
force SMEs to compromise service quality and cost efficiency (Kowalkowski et al., 2013),
particularly when they act within large supply chains, leading to uncertainties regarding
aftermarket services (�Akesson et al., 2022). This study focuses on manufacturing SMEs’
service offerings enabled by digital technologies.
Digital technologies play a pivotal role in service delivery, facilitating scalability and
expansion andmitigating supply-chain-related challenges, such as through establishing online
marketplaces or remote support services (Romagnoli et al., 2023; Zheng et al., 2020). SMEs’
resource limitations make offering digitally-enabled services challenging, as do bargaining
power disparities and altered business models (M€uller, 2019). Consequently, manufacturing
SMEs can be reluctant to adopt new capabilities (Mennens et al., 2018; Michalik et al., 2019).
The digital transformation of manufacturing SMEs changes the traditional supply chain by
introducing new ties and highlighting co-creation and co-evolution (Schmidt et al., 2023). This
transformation relies on the contribution of information technology (IT) suppliers, which
provide infrastructure and impact IoT technology strategy (Ferreira and Lind, 2023). The role
of IT suppliers in digital transformation has typically been explored in terms of improving or
creating data-enabled business processes, platforms, and skills in SMEs, such as marketing,
purchasing, or inventory management (Battistoni et al., 2023). However, their role in
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developing SMEs’service businesses is distinct, considering that their expertise and efforts are
featured in their service offerings to customers (Momeni et al., 2023).
This study applies the concept of supplier involvement, which has attracted attention in
manufacturing product and service development fields (Ayala et al., 2021). Formanufacturing
SMEs, involving suppliers refers to collaborating with suppliers in the product development,
production, and service provision processes (Flankeg�ard et al., 2021). Here, we interpret
supplier involvement in terms of the extent of supplier involvement and supplier responsibility
in the project (Ke˛dzia, 2024). Involving IT suppliers, such as software developers and cloud
platform providers, enhances SMEs’ operational efficiency and encourages innovation and
adaptability (Cenamor et al., 2019). It also offers SMEs access to digital technologies and
expertise, which they might otherwise lack (Brodeur et al., 2022). That access narrows the
disadvantageous digital gap to large manufacturers (Paiola et al., 2022a). Such collaboration
also helps SMEs customize digital technologies to fit their needs, ensuring that these
technologies are not just accessible but also relevant and effective in driving growth and
competitiveness (Paiola et al., 2022b).
The current research addresses three main gaps in digital servitization literature. First,
despite the highlighted contributions, the literature on digital servitization has focused on large
manufacturers (Paiola et al., 2022a) and it has paid less attention to the involvement of IT
suppliers, particularly in the SME context (Rapaccini et al., 2023). Second, while research
highlights the importance of SME–IT supplier collaboration to digitally-enabled services
(Cenamor et al., 2019; Rapaccini et al., 2023), little is known about how SMEs involve IT
suppliers in digitally-enabled services. Third, previous studies have primarily emphasized the
similarities among SMEs in terms of offering services and the need for involving ITsuppliers,
neglecting the inherent variations among SMEs (Johnson, 2002; Sparrow, 2005; Zheng
et al., 2020).
Accordingly, this paper aims to provide a comprehensive understanding of how SMEs
involve IT suppliers in offering different types of digitally-enabled services and addresses the
following research question: How do manufacturing SMEs involve IT suppliers in offering
digitally-enabled services?
The study applies a dynamic capabilities lens, which helped unveil supplier involvement
(Vanpoucke et al., 2014; Wagner and Zanger, 2023). The framework emphasizes a firm’s
ability to integrate, build, and reconfigure internal and external resources to address rapidly
changing environments (Teece, 2007). Here, IT suppliers are seen as an external resource
SMEs leverage to navigate digital transformation. The interplay between the dynamic
capabilities and supplier involvement perspectives helps differentiate how SMEs involve IT
suppliers.
2. Literature review
2.1 Adding digitally-enabled services to manufacturing SME offerings
The often-cited characteristics of SMEs include creativity, a local foothold, and diverse
managerial skills, ranging from low-technology locally oriented businesses to high-
technology manufacturing entities (Rodr�ıguez-Guti�errez et al., 2015). Globalization and
increasing competition have forced SMEs to seek newways to gain competitive advantage and
participate in global firms’ supply chains (Turekulova et al., 2022). Service innovation can
significantly affect SMEs’ performance, indicating the importance of service business (de
Oliveira Sousa et al., 2020). Adding services to SMEs’ offerings can have financial and non-
financial benefits, such as enhancing customer relationships and loyalty (Kowalkowski et al.,
2013), signaling firms are reliable and innovative partners (Grandinetti et al., 2020) and
improving revenue stability via ongoing service contracts or subscription-based models
(Gebauer et al., 2010). Typically, SMEs have a shorter-term horizon and a more reactive
business approach than large manufacturing firms, making adding digitally-enabled services
challenging (Rakic et al., 2020).
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Incorporating digitally-enabled services in manufacturing involves using digital
technologies to enhance traditional service offerings to provide value beyond that available
from the physical product (Schroeder et al., 2020). Digitally-enabled services encompass
obligatory ICT (information and communication technology)-based services, ICT-based
solutions, pure digital services, and digitalized product-service systems, reflecting the
contribution of digital components and the complexity of each offering (Lerch and Gotsch,
2015). Obligatory ICT-based services are essential support functions like remote support. ICT-
based solutions integrate digital systems, such as remote monitoring and teleservice, to
optimize processes (Ardolino et al., 2018). Pure digital services extend the manufacturer’s
service offerings and enhance the performance of products and services (Lerch and Gotsch,
2015), such as SaaS (software-as-a-service) platforms or cloud-based analytics. Digitalized
product-service systems combine physical products with digital services, creating intelligent,
autonomous systems (Frandsen et al., 2022).
Digitally-enabled services help SMEs enhance service delivery, streamline operations, and
elevate the customer experience (Coreynen et al., 2017). Previous studies underscore the
significance of SMEs developing and evaluating digitally-enabled services (Lamperti et al.,
2023). Additionally, studies highlight the importance of SMEs’ strategic management and
exploration orientation in achieving sustainable competitive advantage via digitally-enabled
services (Cenamor et al., 2019). Manufacturing SMEs often manage digital servitization
through small, consistent organizational changes (Brodeur et al., 2023). The literature
emphasizes the need for a structured approach, including roadmaps,maturity assessments, and
ecosystem involvement (Kolagar et al., 2021).
While digital technology can transform service delivery, manufacturing SMEs are often
reluctant to adopt digitalization (Cimini et al., 2020). Common barriers include limited
resources, capabilities, and expertise in digital technologies; financial pressures; and
resistance to change (Grandinetti et al., 2020; Paiola et al., 2022b; Peillon and Dubruc,
2019;Wang et al., 2007). Considering the limited resources and capabilities of manufacturing
SMEs, external service suppliers play a key role in shaping their service business (Brodeur
et al., 2022) and digitalization (Ghobakhloo and Iranmanesh, 2021). Consequently, adding
digitally-enabled services often requires SMEs to rethink their value chain position (Gebauer
et al., 2010) and demands support across distribution channels and customer bases (Peillon and
Dubruc, 2019).
2.2 Involving IT suppliers in manufacturing SMEs’ service offerings
Digital transformation in SMEs is characterized by the strategic integration of digital
technologies into all business areas, which changes how SMEs operate and deliver customer
value (de Mattos et al., 2023). The transformative journey often leads SMEs to collaborate
with IT suppliers to integrate solutions into business processes (Brodeur et al., 2022). An IT
supplier might provide the necessary digital tools and platforms, offer expertise in digital
strategy formulation, and assist in implementing digital initiatives (Cenamor et al., 2019; de
Mattos et al., 2023). The literature highlights the key characteristics of involving IT suppliers
in manufacturers’ digital transformation (see Table 1). The literature emphasizes strategic
alignment and dynamic capabilities, revealing that significant involvement and regular
communication enhance the attractiveness and long-term success of IT supplier relationships
(Beulen and Ribbers, 2002; Brito and Nogueira, 2009; Karimi-Alaghehband and Rivard,
2020; Poleto et al., 2022). Manufacturers need strong digital capabilities, such as advanced IT
infrastructure and skilled personnel, strategic IT planning, and market awareness (Brodeur
et al., 2023; Karimi-Alaghehband and Rivard, 2020; Ma et al., 2023; Obwegeser et al., 2020)
and IT suppliers need advanced technological skills, industry-specific knowledge, and
adaptability to provide customized solutions (Brito and Nogueira, 2009; Brodeur et al., 2023).
Table 2 lists the empirical studies of digital servitization in SMEs. Digital servitization
drives business model innovation toward more service-oriented and data-driven approaches,
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often involving collaboration with IT suppliers for efficient and tailored services (Reim et al.,
2022). Collaboration with IT suppliers and other partners is necessary for providing
technological capabilities and facilitating joint innovation, with ecosystems supporting
complex digital transformations and value co-creation (Chuang and Lee, 2023; Gao et al.,
2023; Kolagar et al., 2021; Lamperti et al., 2023). IT suppliers help SMEs anticipate potential
issues, avoid common pitfalls, and achieve the integration of digital tools into their existing
systems (Rapaccini et al., 2023). Furthermore, suppliers are often at the forefront of
technological innovation, offering manufacturers access to the latest developments in digital
technology (Dalenogare et al., 2023; Momeni et al., 2023).
Previous studies of large manufacturers discussed mechanisms combining utilizing
internal resources and existing customer relationships with acquiring external ITsuppliers and
knowledge providers to offer digitally-enabled services (Ciasullo et al., 2021; Coreynen et al.,
2017; Momeni et al., 2023). However, the applicability of the mainstream digital servitization
literature to smallmanufacturers with limited resources remains questionable.While digitally-
enabled services are important for manufacturers of all sizes, the nature of those services and
the involvement of IT suppliers differ substantially. Despite a growing understanding of the
importance of network capability and ecosystem involvement in the context of digital
servitization in SMEs, there remains a need for more detailed research in this area (Cenamor
et al., 2019; Kolagar et al., 2021; Rapaccini et al., 2023). Another critical issue requiring
deeper exploration is how SMEs involve their suppliers. It is essential to recognize that SMEs
are not a homogeneous group (Johnson, 2002; Sparrow, 2005); they vary in terms of size,
sector, market focus, and resource availability. That diversity affects the nature and extent of
supplier involvement.
2.3 Dynamic capabilities as a lens on ITsupplier involvement in digitally-enabled services
Dynamic capabilities refer to a firm’s ability to integrate, build, and reconfigure internal and
external competencies to address rapidly changing environments (Teece, 2007). This
perspective is particularly relevant to the context of digitally-enabled services in
manufacturing SMEs, in which the ability to adapt and evolve is crucial for survival and
success (Coreynen et al., 2017; Kohtam€aki et al., 2021). Applying the dynamic capabilities
Table 1. Key characteristics of involving IT suppliers in manufacturers’ digital transformation
Category Key findings
Relationship
management
Communication, clear expectations, mutual trust, knowledge transfer and capability
exchange (Beulen and Ribbers, 2002; Brito and Nogueira, 2009; Poleto et al., 2022)
The need for a deep, ongoing interaction for SMEs to leverage IT capabilities
(Ferreira and Lind, 2023)
The need to align strategic objectives with governance practices (Obwegeser et al.,
2020)
Manufacturers’
capabilities
The need for SMEs to develop robust digital capabilities for strategic alignmentwith
IT suppliers, including digital infrastructure, workforce training, and strategic
integration of ITcapabilities (Brodeur et al., 2023;Ma et al., 2023; Obwegeser et al.,
2020)
Highlights the strategic importance of dynamic capabilities and market awareness
for effective IT outsourcing (Karimi-Alaghehband and Rivard, 2020)
IT suppliers’
capabilities
Advanced technological skills, industry-specific knowledge, and the ability to adapt
to clients’ needs (Brito and Nogueira, 2009)
Providing advanced ITsolutions, providing scalable solutions that can growwith the
SME, offering flexible service models, and ensuring high levels of support and
training (Brodeur et al., 2023)
Source(s): Authors’ own work
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lens sheds light on how manufacturing SMEs involve suppliers in digitally-enabled services.
Research can then move beyond a simplistic view of digital adoption toward a more
comprehensive understanding of how SMEs involve IT suppliers. Developing dynamic
capabilities can manifest in several ways among SMEs:
Table 2. Previous empirical studies on digital servitization in SMEs
Authors Main topic Research method Key findings
Bettiol et al.
(2023)
SME crisis management
through diversification,
servitization, and
digitalization
Quantitative, 257
SMEs in Italy
- SME crisis management
benefits from diversification,
servitization, and
digitalization
Cenamor et al.
(2019)
The role of digital
platforms in enhancing
SME performance
Quantitative method
in 230
entrepreneurial
SMEs in Sweden
- Network capability as a critical
capability in digital
servitization
- The importance of an
exploration orientation to the
digital servitization of SMEs
Chuang and Lee
(2023)
Dilemmas and strategies in
digital servitization
Qualitative,multiple-
case study
- Dilemmas and strategies are
identified in digital
servitization
Coreynen et al.
(2017)
Digital servitization
pathways for SMEs
Qualitative multiple-
case study
- Different pathways to digital
servitization in SMEs
- The importance of dynamic
resource configurations
Gao et al. (2023) Influence of digital
transformation on the
servitization level
Quantitative panel
data of SMEs in
manufacturing
- Digital transformation
significantly influences
servitization levels in SMEs
Huang and
Kumarasinghe
(2024)
Servitization and digital
integration
Quantitative, 331
SMEs in China
- Digital integration is key for
servitization in manufacturing
SMEs, involving collaboration
with multiple actors
Kolagar et al.
(2021)
Digital servitization as an
enabler of SME
internationalization
Qualitative multiple-
case study
- Digital servitization strategies
promote SME
internationalization through
partnerships
Le-Dain et al.
(2023)
Barriers and opportunities
in digital servitization
Qualitative, a focus
group of senior
executives
- Digital servitization is enabled
by digital strategy and
ecosystem involvement and is
hindered by lack of
capabilities and
underdeveloped ecosystem
networks
Lamperti et al.
(2023)
Digital servitization
process for SMEs in
disruptive markets
Qualitative single-
case study
- Digital servitization drives
business model innovation in
SMEs
Rapaccini et al.
(2023)
Collaboration between
service firms and SMEs
A longitudinal
single-case study
- Multi-stage roadmap of
SME’s digital servitization
journey
Reim et al.
(2022)
Business model challenges
in SMEs’
internationalization
Qualitative multiple-
case study
- Digital service maturity and
ecosystem involvement are
crucial for SME
internationalization
Trabert et al.
(2024)
Organizational digital
transformation in SMEs
Qualitative, expert
interviews
- Stakeholders in the ecosystem
must network to facilitate
value creation
Source(s): Authors’ own work
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(1) Sensing: Manufacturers must assess opportunities presented by digital technologies
(Karimi-Alaghehband and Rivard, 2020). They must, therefore, understand the
technology and its operational implications (Kolagar et al., 2021).
(2) Seizing: Manufacturers must be able to seize the opportunities identified. That could
involve commissioning new digital tools or platforms or digitally-enabled services
(Cenamor et al., 2019).
(3) Reconfiguring: Finally, manufacturersmust be able to reconfigure their operations and
processes (Coreynen et al., 2020). That may involve reconfiguring supply chains,
changing production processes, or rethinking business models (Hasselblatt et al.,
2018). Key stakeholders, like suppliers, must be actively involved in these processes
(Dalenogare et al., 2023; Rapaccini et al., 2023).
Building on the concept of reconfiguring capabilities, we explore involving IT suppliers in
SMEs’ digitally-enabled services through the lens of supplier involvement (Ayala et al., 2021).
Supplier involvement in manufacturing is intended to enhance innovation, improve product
quality, and optimize supply chain efficiency (Wynstra and Ten Pierick, 2000). The bulk of
research in this area focuses on the role of suppliers in new product development and
innovation in large manufacturers, highlighting the benefits of supplier contributions to
product innovation, reduced time-to-market, and enhanced product quality (Danese and
Filippini, 2010; Luzzini et al., 2015).
The limited studies on service supplier involvement have acknowledged that the service
business of manufacturers has expanded beyond the conventional view of a dyadic interaction
between manufacturers and customers by acknowledging the key role intermediaries play in
this process (Ayala et al., 2021). Manufacturers increasingly use the expertise and capabilities
of external service suppliers, elevating the importance of service suppliers as a critical enabler
of this transformation (Saccani et al., 2014).
Previous research often discusses three types of supplier involvement:
(1) Operational involvement: third parties’ contribution to day-to-day operations, such as
product or service delivery (Huttu and Martinsuo, 2015; Momeni and Martinsuo,
2019; Vaittinen et al., 2019).
(2) Innovation collaboration: joint efforts in developing certain new products or services,
often leveraging the supplier’s unique expertise or resources (Yeniyurt et al., 2014).
(3) Strategic partnership:Long-term agreements in which product suppliers work closely
with manufacturers in research and development and new product design (Luzzini
et al., 2015).
This research adopts the dynamic capabilities and supplier involvement concepts to
investigate how manufacturing SMEs involve IT suppliers in digitally-enabled services.
3. Research methodology
3.1 Research design and cases
The research adopts a qualitative multiple-case study approach. Case studies suit investigating
phenomena in real-life contexts, aligning with our study’s how research question (Yin, 2009).
Specifically, this approach seeks insights into howmanufacturingSMEs involve their suppliers in
digitally-enabled services. The research questions outlined guided the research design and data
collection. Multiple-case studies allow researchers to compare, replicate, and, when necessary,
challenge findings related to a phenomenon across contexts. Additionally, they provide an
opportunity to explore how different contexts impact the studied phenomenon (Yin, 2009).
This study focuses on the service businesses of manufacturing SMEs. This research
analyzes multiple cases to provide valuable insights and practical knowledge to inform theory
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on SME service business development and advance practice (Siggelkow, 2007). We targeted
business-to-business (B2B) manufacturing SMEs in a region of Finland accessible to our
research team. Our search began by compiling a list of active technology-based SMEs in the
region, ensuring they met the SME criteria related to sales revenue and personnel count.
We utilized a technology association company listing for this purpose. Subsequently, we
explored the websites of these firms to understand their businesses and identify any relevant
industrial services they offered. Our key criteria for case selection included (1) well-
established manufacturing SMEs that are (2) involved in developing and delivering services
alongside their products and (3) that cover a variety of industry sectors. This process yielded a
preliminary list of approximately 30 potential firms. We contacted these companies via email
and telephone to gauge their interest in participating in our study. Ultimately, initial
discussions with six SMEs led to their participation, providing a sufficient number of
interviews per firm, aligned with the recommended range of four to ten cases for case-study
research (Eisenhardt, 1989). Table 3 introduces background information on the companies and
details the data collection. Pseudonyms are used to maintain the anonymity of the companies.
Each company in our study manufactures a product independently or in collaboration with
a partner. Their products are primarily sold in the B2Bmarket internationally. All the selected
companies offer services to their industrial customers, including installation and training,
maintenance and repair, modernization and upgrades, and digitally-enabled services. Each of
the selected SMEs has a distinct core business. Although two companies, ElectricCool and
MarineMotive, operate in the marine sector, they offer different solutions. Similarly, while
PaperTech and PrecisionFlow both serve customers in the process industry, their products and
customer bases differ.
3.2 Data collection
Semi-structured interviews served as the primary data collection method. We developed a
semi-structured interview outline to allow interviewees’ personal stories and experiences to
emerge while systematically covering key themes across all interviews. The interview outline
included questions related to the company’s background, service offerings, service delivery,
utilization of digitalization in services, and involvement of various actors (such as suppliers) in
service development and delivery (Appendix). Additionally, we explored changes in the
service process, strategy, supply chain, and plans concerning service business development.
Table 3. Background information on the companies and interviews
Company
(pseudonyms) Revenue
Nr. of
employees Industry
Nr. of
interviews Interviewees’ positions
ElectricCool 5 MV <30 Cooling
systems
3 Managing Director, Head of
Sales, Installation Manager
GripMeter 2 MV <10 Traction
measuring
3 CEO, Installation Manager,
Product Manager
HeavyLift 5 MV <10 Lifting
devices
2 CEO, Dealer Manager
MarineMotive 30 MV <100 Propulsion
systems
4 Service director, IT Manager,
Service Department
Manager, Service Manager
PaperTech 2 MV <10 Machinery
components
4 CEO, Design Manager,
Installation Manager,
Procurement Manager
PrecisionFlow 10 MV <50 Machinery
components
4 CEO, CTO, Production
Manager, Technical
Production Manager
Source(s): Authors’ own work
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The key contact person, typically the chief executive officer ormanaging director, provided
broad background information on the SME, its services, and its overall strategy. To
complement this director-level knowledge, the contact person shared the contact information
for additional informants directly involved in the firm’s service development, delivery,
digitalization efforts, and supplier cooperation. The pool of such individuals in manufacturing
SMEs was limited, so we selected two to four persons per firm to cover most of those directly
engaged with services.
We conducted a total of 20 interviews, with each interview lasting between 25 and
84 minutes. All interviews were recorded and transcribed for subsequent analysis.
Additionally, we supplemented the interview data with secondary sources, such as company
websites and marketing materials. These sources were valuable in providing background
information about the SMEs and confirming the data on digitally-enabled services obtained in
the interviews.
3.3 Data analysis
We employed a thematic analysis method, which suits identifying patterns in data and remains
flexible enough to establish diverse theoretical connections (Braun and Clarke, 2022). Given
the absence of pre-existing frameworks regarding howSMEs involve ITsuppliers, we adopted
an abductive approach by comparing empirical observations with the existing literature to
uncover thematic patterns (Dubois and Gadde, 2014). The data analysis focused on SMEs and
how they interpret involving IT suppliers in their digitally-enabled services. Figures 1 and 2
illustrate the analysis categorizations, and the supplementary material provides representative
interview excerpts.
Initially, one researcher reviewed all interview notes, focusing on sections relevant to our
study. This process allowed for a preliminary understanding of the nature of each SME’s
business. We noted how SMEs involve IT suppliers as key stakeholders influencing their
digitally-enabled services for industrial customers. We conducted rough initial coding to
identify digitally-enabled services and the various ways SMEs involve IT suppliers, and the
factors differentiating those ways were examined.
Scanning industry needs and opportunities 
Responding to legislative pressure
Managing technical connection conditions and challenges
Addressing customers’ needs and expectations
Reassessing markets due to war impacts in customer regions
Adapting to COVID-19 restrictions 
Responding to industry and market 
demands
Assessing customer readiness
Developing responses to crises
Making sense of IT suppliers’ role and capabilities in enabling service innovation
Recognizing digital platform capabilities of IT suppliers
Identifying the commercialized digital tools offered by IT suppliers 
Understanding IT suppliers’ 
offerings and capabilities
Codes Themes
Embedding services at the core of the business strategy
Expanding service roles within the business strategy
Treating services as complementary to the core product
Relying on external suppliers for service operations
Combining dedicated resources with partnerships for service delivery
Assigning dedicated resources to manage service operations
Positioning services within the 
business strategy
Allocating and managing service 
resources
Operating with limited resources and technical readiness
Applying operational and technical expertise to implement new systems
Demonstrating long-term strategic innovation readiness
Building and leveraging digital 
capabilities and readiness
Sensing
Seizing
Categories
Source(s): Authors’ own work
Figure 1. Data structure on sensing and seizing capabilities in SMEs
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In the second step, another researcher followed the initial exploration and reviewed
alternative themes, ensuring the validation and peer verification of the data analysis process.
This iterative process involved cross-referencing observations from the interviews with the
relevant literature. Ultimately, we refined and structured the identified themes into two distinct
domains: sensing and seizing. In explaining the development of service business and digitally-
enabled services, the interviewees emphasized “sensing” the business environment
influencing digitally-enabled services within SMEs (Figure 1). The themes encompassed
responding to industry and market demands, assessing customer readiness, developing
responses to crises, and understanding IT suppliers’ offerings and capabilities. Next, we
delved into how each SME considers its specific internal conditions and “seizes” the
opportunities by developing digitally-enabled services. The themes include positioning
services within the business strategy, allocating andmanaging service resources, and building
and leveraging digital capabilities and readiness (Figure 1).
Third, having compared our empirical observations with the literature on digitally-enabled
services (Lerch and Gotsch, 2015), we categorized the digitally-enabled services offered by
SMEs into obligatory ICT-based services, ICT-based solutions, pure digital services, and
digitalized product-service systems (Table 4). Our coding process considered criteria such as
the contribution of digital components and the complexity of each offering. Notably, none of
the SMEs in our study provided digitalized product-service systems, as these more advanced
and integrated offerings, which combine physical products with autonomous digital services,
were beyond the scope of their current capabilities. Our analysis revealed both similarities and
differences in the development of the service aspects of the business for each case company.
We thus clustered SMEs into three main categories: operational efficiency seekers, service
growth seekers, and service-centric SMEs (Table 5).
Managing IT supplier relationships with limited operational responsibility
Collaborating with IT suppliers for enhanced operational support
Assuming continuous and strategic responsibility for digitally-enabled services
Restricting to basic involvement, focused on software transactions
Maintaining moderate involvement in service development
Engaging in high involvement in service development
Defining and managing the level of 
IT suppliers’ responsibility
Engaging with IT suppliers based 
on the degree of involvement
Codes Themes
Source(s): Authors’ own work
Figure 2. Data structure on reconfiguring capability, i.e. ways of involving IT suppliers
Table 4. Examples of digitally-enabled services offered by manufacturing SMEs
Company
Obligatory ICT-based
services ICT-based solutions Pure digital services
ElectricCool Remote customer support Remote commissioning, Device
design configurator
–
GripMeter Remote customer support Remote commissioning Runway traction level
reporting software (SaaS)
HeavyLift Remote customer support – –
MarineMotive Remote monitoring and
customer support
Inspection scheduling
optimization with third parties
Condition-monitoring
software (SaaS)
PaperTech 3D installation tool,
Remote customer support
– –
PrecisionFlow Remote customer support Remote commissioning, Device
design configurator
–
Source(s): Authors’ own work
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The fourth step analyzed how different clusters of SMEs reconfigure their resources by
involving IT suppliers in digitally-enabled services. To differentiate ways of involving IT
suppliers, we defined the key themes according to the literature, including engaging with IT
suppliers based on the degree of involvement and defining and managing the level of
IT “suppliers” responsibility (Ke˛dzia, 2024) (Figure 2). While the degree of IT supplier
involvement refers to the extent and depth of participation and engagement of the IT supplier,
the level of responsibility refers to the supplier’s role in contributing to ongoing improvement,
optimization, andmanagement of the digitally-enabled services. Each of these key themeswas
perceived in three different ways among the interviewees. Consequently, when the three
combinations of these codes were examined at the firm level, the overall patterns matched the
categorization framework introduced in the literature review,which defines three distinctways
of involving suppliers: operational involvement, innovation collaboration, and strategic
partnership. For example, when the degree of supplier involvement was moderate and the
level of responsibility was enhanced operational, the pattern suggested was innovation
collaboration.
Finally, analyzing patterns in the data facilitated generalizing our findings through cross-
cluster analysis to isolate the differences among SMEs and theirways of involving ITsuppliers
(see Table 6).
4. Findings
4.1 Sensing the business environment regarding digitally-enabled services
An SME’s business environment may encourage or hinder digital servitization. The direction
is often shaped by its response to industry and market demands, particularly in traditional
sectors such as machine manufacturing. Product-centric strategies dominate such industries,
reducing the attraction of offering digitally-enabled services. Nevertheless, some SMEs
operating in advanced industries, such as aviation and maritime, have developed advanced
digital services in response to industry-specific opportunities or needs. For example,
GripMeter responded to changes in aviation industry regulations by developing a runway
reporting system. Similarly, MarineMotive entered the condition-monitoring software market
in response to the existing market appreciation for such services.
However, offering digitally-enabled services also hinges on assessing customer readiness
(supporting Vaittinen and Martinsuo, 2019). Some interviewees explained that some
customers resist adopting complex digital offerings despite having the necessary
Table 5. Clusters of SMEs based on their seizing capability
Clusters of SMEs
Themes
Operational efficiency
seekers Service growth seekers Service-centric SMEs
Positioning services
within the business
strategy
Treating services as
complementary to the
core product
Expanding service roles
within the business strategy
Embedding services at
the core of the business
strategy
Allocating and
managing service
resources
Relying on external
suppliers for service
operations
Combining dedicated
resources with partnerships
for service delivery
Assigning dedicated
resources to manage
service operations
Building and
leveraging digital
capabilities and
readiness
Operating with limited
resources and technical
readiness
Applying operational and
technical expertise to
implement new systems
Demonstrating long-term
strategic innovation
readiness
Cases studied HeavyLift, PaperTech ElectricCool,
PrecisionFlow
GripMeter,
MarineMotive
Source(s): Authors’ own work
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infrastructure in place. ElectricCool acknowledges challenges in certain customer segments,
particularly regarding network connectivity and integration with larger technical systems.
Responses to crises can prompt companies to mitigate adverse impacts and seize emerging
opportunities (Rapaccini et al., 2020). The COVID-19 pandemic, for example, forced
businesses, including ElectricCool, GripMeter, and PrecisionFlow, to pivot toward remote
services and digitalization. Similarly, PrecisionFlow faced market disruption caused by war,
compelling a strategic departure from supplying to hostile regions. The firm had to explore
alternative markets and solutions to mitigate financial losses and sustain business operations.
The interviewees also emphasized understanding IT suppliers’ offerings and capabilities
(Karimi-Alaghehband and Rivard, 2020), which could reduce the burden on their internal
resources. Both ElectricCool and PrecisionFlow demonstrated an awareness of what their IT
suppliers could offer, recognizing their platforms and capabilities as key to developing tailored
solutions to meet customer needs while integrating seamlessly with existing systems.
4.2 Developing digitally-enabled services and differences among SMEs’ resources and
capabilities
This section explores three clusters of SMEs: operational efficiency seekers, service growth
seekers, and service-centric SMEs (Table 5). Categorizations are based on strategic focus,
resource allocation, and digital capabilities and readiness. Each cluster demonstrates varying
levels of seizing capability regarding service integration within their business strategies,
resource dedication to service development and delivery, and readiness to leverage digital
technologies to support service offerings.
Table 6. Ways SMEs involve IT suppliers
Clusters of
SMEs
Ways of
involving Degree of IT supplier’s involvement Level of IT supplier’s responsibility
Efficiency
seekers
Operational
involvement
Basic involvement
Supplier sells and manufacturer
procures a software package (or
license)
Limited and operational
responsibility
Sales, operative customer support,
updates
Service
growth
seekers
Innovation
collaboration
Moderate involvement
• Manufacturer is involved in
developing the solution using
the supplier’s platform
IT supplier provides the platform
and development resources;
manufacturer delimits the scope,
defines the requirements, defines
contents, and resolves problems
during testing
Enhanced operational responsibility
IT supplier’s commitment to
support the further development of
the solution and manage changes in
cooperation, in addition to sales,
operative support, and updates
Service-
centric SMEs
Strategic
partnership
High involvement
IT supplier included in the
manufacturer’s development
project. The manufacturer and IT
supplier collaborate throughout the
solution lifecycle and with
customers on updating the solution
Continuous and strategic
responsibility
• A subscription-based (or use-
based) earning logic, between
customer and manufacturer and
manufacturer and IT supplier
• Solution can be installed from
the app store; contract specifies
earnings distribution between
IT supplier and manufacturer
Solution may include proprietary
components owned by the
manufacturer’s customer
Source(s): Authors’ own work
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Operational efficiency seekers. The first cluster of case companies includes HeavyLift and
PaperTech. Within this cluster, firms focus on obligatory ICT-based services, which enhance
internal service processes rather than providing advanced digital offerings for customers. An
illustrative example is PaperTech’s innovative 3D installation tool. The installation manager at
PaperTech stated, “The tool provides engineers with all the necessary instructions in one place
to make the installation easier; also, the tool helps with communicating the service task to the
customer.” A common service among SMEs in this cluster is remote customer support,
predominantly facilitated through standard video-conferencing tools.
For these SMEs, positioning services within the business strategy is secondary. This
implies that services are not a primary focus of the business model. Product-oriented SMEs in
this cluster focus on aftersales services and tend to involve conventional suppliers to leverage
their competencies and enhance sales and aftersales. For example, HeavyLift, primarily a
product-centric firm, channels its sales and aftersales through a global network of dealers.
Both SMEs acknowledged their limitations in building digital capabilities and readiness.
HeavyLift interviewees, for example, had negative experiences with early experiments with
digital technologies, whichmade them cautious and highlighted their lack of intrinsicmotives,
capabilities, and resources (Cimini et al., 2020). PaperTech interviewees also indicated that
digitalization was not a core competency.
Service growth seekers. This cluster includes ElectricCool and PrecisionFlow, which
have shifted toward positioning services centrally in the business strategy. Such firms adopt
ICT solutions to improve existing service offerings. ElectricCool and PrecisionFlow offer
digitally-enabled services, such as remote commissioning and pre-sales support configurators.
Remote commissioning allows SMEs to install, configure, and test industrial equipment while
assisting customers remotely. Configurator tools are attractive to certain customers. The
technical production manager at PrecisionFlow explained, “Our configurator tool makes it
possible for customers to discover solutions. Some engineering-minded people prefer to
explore and experiment with the configurator themselves instead of listening to salesmen.”
ElectricCool’s managing director added, “The configurator saves time in sales and
consultancy situations, as the customers have already familiarized themselves with
configurations that might suit their needs.”
In these SMEs, allocating and managing service resources are becoming more structured.
Services are emerging as a key growth driver and attracting resources. For example,
ElectricCool is gradually increasing its focus on aftersales services, recognizing the importance
of long-term customer relationships while relying on suppliers and partners for some services.
ElectricCool interviewees reported that service development, delivery, and customer support
services were primarily in-house, but third-party companies contributed to some projects.
Regarding digital capabilities and readiness, these SMEs demonstrate some operational and
technical expertise, with experts focusing on efficiency and automation. Skilled personnel who
understand customer processes and new technology play a key role. ElectricCool, for example,
had a small group of experts addressing efficiency and automation by leveraging digital
technologies. PrecisionFlow had some advanced technicians presenting digital solution ideas.
Service-centric SMEs. This cluster comprises GripMeter and MarineMotive. These
SMEs have developed pure digital services to support customer operations, leveraging
advanced digital solutions such as SaaS models and condition-monitoring software.
GripMeter, for example, has developed automated reporting software in response to
changes in industry regulations, aiding customers in compliance and simplifying the reporting
process. The CEO at GripMeter stated, “The automated reporting software was developed to
help our customers when regulations on reporting traction levels changed.Wemade it easy for
the customers to keep up with the new standards.” Similarly, MarineMotive’s SaaS solution
for monitoring propulsion systems and alerting customers to maintenance needs illustrates the
SMEs’ proactive approach to maintaining efficient customer service.
Positioning services within the business strategy is a central priority in these SMEs. Services
are notmerely an add-on but are at the forefront of the value proposition and growth strategy. For
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example,GripMeter’s emphasis on standardizedmaintenance processes and its service contracts
reflect its commitment to providing consistent, high-quality aftersales service at airports, which
is themost important thing for the customer. These SMEs also dedicate resources to support and
enhance their service offerings. Such resources include specialist personnel tasked with service
development, delivery, and customer support.
The interviewees in this cluster highlighted future preparedness and operational and technical
expertise when explaining their capabilities and readiness. The findings parallel those of
Cenamor et al. (2019) on the importance of SMEs’ strategic management and exploration
orientation in developing digital servitization. The MarineMotive interviewees explained that
the foundations for its digitally-enabled services were laid a decade previously to add value for
the customer and manufacturer. These SMEs ran goal-oriented development projects
(Obwegeser et al., 2020) and were willing to customize services for strategic customers.
4.3 Involving IT suppliers in the SMEs’ digitally-enabled services
The involvement of IT suppliers in SMEs’ digitally-enabled services ranges from basic
operational support to complex, co-owned digital platforms. This reflects how SMEs engage
with IT suppliers based on the degree of involvement and define and manage the level of IT
supplier responsibility. Our analysis categorizes the involvement of IT suppliers into three
types based on the two dimensions: operational involvement, innovation collaboration, and
strategic partnership (see Table 6 below).
Operational involvement was observed in efficiency seekers. The SMEs often opt for
known software brands for the solutions were commercially available or required only minor
customization. The degree of the supplier’s involvement is basic, focusing only on software
transactions, where the supplier sells a software package or license to the SME. The IT
suppliers’ responsibility is limited to managing software sales, operational customer support,
and updates (Momeni and Martinsuo, 2019).
Innovation collaboration was more evident in the service growth seekers, ElectricCool
and PrecisionFlow, that tailored digitally-enabled services to address specific needs. For
example, PrecisionFlow collaboratedwith ITsuppliers to transform simple configuration tools
into more advanced, self-service online versions for customer use. The IT supplier’s
involvement was moderate. The supplier provided the platform and development resources,
while the SME defined the scope, requirements, and content and handled problem-solving
during testing. These findings on the service growth seekers confirm the importance of the
SMEs’ digital capabilities and skilled personnel in effectively collaborating with IT suppliers
(Ma et al., 2023). Supplier responsibility is enhanced operationally as the supplier commits to
supporting the development of the solution and managing changes in cooperation, and also
sales, operative support, and updates.
Strategic partnership was observed in service-centric SMEs, such as GripMeter and
MarineMotive, where digitally-enabled services were central to SME operations. The IT
suppliers were deeply embedded in the development process, working closely with the SME
on co-developing and tailoring solutions for strategic customers (Brodeur et al., 2023). The
level of involvement extended beyond operational support; the supplier assumed strategic
responsibility for digitally-enabled services over the solution lifecycle tomeet customer needs
and maintain the partnership. Revenue-sharing models, such as subscription-based or use-
based earning logics, were common in this category, with clearly defined contracts specifying
the distribution of earnings between the IT supplier and the SME.
5. Discussion and conclusions
5.1 Theoretical contributions
This study investigated how manufacturing SMEs involve IT suppliers in offering digitally-
enabled services. It explored small manufacturers with limited resources, which require external
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support for digital servitization (Ghobakhloo and Iranmanesh, 2021), thus extending knowledgeof
digitally-enabled services beyond the context of well-resourced manufacturers (Paiola et al.,
2022b). The selected manufacturing SMEs possess distinct patterns of dynamic capability—
sensing, seizing, reconfiguring—concerning their digitally-enabled services. They adapt and
evolve to implement digital servitization (Cenamor et al., 2019; Coreynen et al., 2020) in linewith
specific conditions and capability patterns in their business. The research makes three key
contributions.
First, it illuminates how digitally-enabled services and means of involving IT suppliers
differ in SME environments. Our findings show that SMEs may adopt incremental, flexible
approaches to digital transformation, focusing on immediate and practical digital solutions
that support their routine operations (Brodeur et al., 2023). This approach allows them to
align digital growth with capabilities, avoiding the pitfalls of overinvestment or
underutilization. Given SMEs’ resource constraints, involving IT suppliers must be
strategic and focus on areas where supplier contributions are most impactful (Ferreira and
Silva, 2022). Examples include innovation, where suppliers’ specialized knowledge and
skills can be leveraged, or operational efficiency, where suppliers can help optimize
processes and reduce costs. The findings reveal that IT suppliers often develop scalable
solutions tailored to the specific needs of SMEs and support their adoption and expansion.
The client SMEs rely on these services to counter challenges and constraints that are less
relevant to larger firms (Kowalkowski et al., 2013).
Second, this article draws on dynamic capabilities to explicate involving suppliers beyond
the dominant relationship-management perspective (Beulen and Ribbers, 2002; Brito and
Nogueira, 2009; Poleto et al., 2022). This study extends previous research acknowledging the
importance of dynamic capabilities in IT outsourcing (Karimi-Alaghehband and Rivard, 2020)
by characterizing the sensing, seizing, and reconfiguring of the digital servitization of SMEs. It
extends previous research by demonstrating that SME decision-making is not merely reactive
(Wang et al., 2007) but driven by analysis of business environments and IT suppliers’
capabilities. Our findings illuminate the processes involving ITsuppliers beyond identifying the
importance of network capability and ecosystem involvement (Le-Dain et al., 2023; Reim et al.,
2022). The findings identify key factors in the context of digital servitization in SMEs, including
responding to industry and market demands, assessing customer readiness, developing
responses to crises, understanding IT suppliers’ offerings and capabilities, positioning services
within the business strategy, allocating and managing service resources, and building and
leveraging digital capabilities.
Third, this study introduces a novel three-cluster framework reflectingmanufacturing SMEs’
internal resources and capabilities. The clusters are efficiency seekers, service growth seekers,
and service-centric SMEs. The approach reveals the factors shaping SMEs’ digital servitization
strategies and extends prior literature, which often treats SMEs as a homogeneous group
(Johnson, 2002; Sparrow, 2005). Accordingly, the study identifies distinct ways SMEs involve
IT suppliers in digitally-enabled services, each with different outcomes. The three ways of
involving IT suppliers—operational involvement, innovation collaboration, and strategic
partnership—are manifestations of the reconfiguration process in SMEs. These findings
complement previous studies identifying the need for IT supplier collaboration in SMEs
(Cenamor et al., 2019; Kolagar et al., 2021; Rapaccini et al., 2023) by clarifying the degree and
level of IT suppliers’ responsibilities. The types of involvement match the internal capabilities
that enable SMEs to effectively utilize their IT suppliers’ expertise despite their inherent
limitations, such as scarcity of resources and digital expertise.
5.2 Managerial implications
The study’s findings will provide SME managers with insights into the involvement of IT
suppliers in digitally-enabled services. Managers should be aware of the role of the business
environment in driving digital servitization, which will aid in positioning their companies in
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the market. Furthermore, this study highlights the importance of SME resources and
capabilities in shaping digital servitization strategies. Managers who diagnose their own SME
as an efficiency seeker, service growth seeker, or service-centric firm will better understand
strategic focus and resource allocation. Lastly, the study provides insights into different ways
of involving IT suppliers, allowing managers to choose the way best aligned with their
company’s needs and goals. The choicemight range from operational involvement for process
optimization to a strategic partnership for long-term growth and innovation. These
implications can guide SMEs in their journey toward successful digital servitization.
5.3 Limitations and suggestions for future research
This study has some limitations that suggest opportunities for future research. Firstly, the focus on
SMEswithin themanufacturing sector and the selection of companies from a specific regionmay
limit the generalizability of the findings. Different businesses or regions might affect digital
servitization and IT supplier involvement. Secondly, the data collection approach could have
influenced the insights elicited, including the formulation of questions and the respondents
contacted. Future research could explore the dynamics of manufacturer-supplier relationships in a
dyadic setting by including IT suppliers’ perspectives. That could unveil the multiple forms and
collaboration models for various actors and services. Moreover, investigating the customer
viewpoint onmanufacturing SMEs’ digitally-enabled services could elicit customer expectations,
their perceived value, and the challenges of developing and delivering them in a triadic setting.
Furthermore, scholars could scrutinize the economic aspects of such collaborations.
Understanding the business logic and financial outcomes for manufacturers and IT suppliers
would be useful. Another intriguing aspect is the dynamics of these relationships, whichmight
include trust, communication, and power dynamics. Given the rapidly evolving digital
landscape, longitudinal studies could be beneficial. These could track the digital servitization
journey of SMEs over time, providing insights into how strategies and supplier relationships
evolve in response to technological advancements and market trends.
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Appendix 1
Semi-structured interview guide (short version)
(1) General questions about the interviewee and the company
(2) Service business
• What services do you offer your customers?
• How is your service business positioned in light of your firm’s strategy? Is it included in the
strategy?
(3) Service delivery
• How is service delivery organized in the company?
• What third parties are involved in service delivery, and how?
• What challenges have you encountered in service delivery? How have you overcome them?
(4) Digitalization
• How do you utilize digitalization in service delivery? For which services?
• How have you developed digitally-enabled services?
• What were the main drivers?
• What digital features or digitally-enabled services do customers appreciate the most?
• What challenges have your company faced in developing, organizing, and delivering this
service?
• How do you see the systems developing in the future?
(5) Involving suppliers
• In the delivery of digital services, do you involve system integrators or other IT or software
companies? How?
• How did the collaboration begin?
• What were the main actions and challenges involved?
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Table A1. Representative quotes from interviewees
Representative quote Codes Themes
In our industry, digital servitization or
digital marketing is not relevant.
[PaperTech]
Scanning industry needs and
opportunities
Responding to industry and
market demands
Well, in fact, certain laws changed in
2021. We knew in advance that the law
was changing, so it would change [the
solution concept] fully. It required our
customers to have a [specific type of
system], so we decided that we have to
develop the platform for the service.
[GripMeter]
Responding to legislative pressure
Currently, customers are extremely
interested in the lifecycle cost [of
solutions]. If they think they will operate
the equipment for 20 years, they are very
interested in what the total cost for the 20
years is. A lot of attention is directed at
that over the past years. [MarineMotive]
Addressing customers’ needs and
expectations
Assessing customer
readiness
In [a certain customer segment] the
network connections are challenging, of
course, when they are somewhere in the
middle of the ocean, where connections
are poor, and our system is connected to
other technical systems. Our equipment
is, anyway, part of a bigger, more complex
system. [ElectricCool]
Managing technical connection
conditions and challenges
When COVID came and traveling ended,
we had to think about how on earth could
we keep in contact with the customers.
Eventually, it has become the best of times
to discusswith customers [through remote
technologies]. Wherever the customer is
on earth, we could always reach them and
get the right contacts. [ElectricCool]
Adapting to COVID-19
restrictions
Developing responses to
crises
We lost a lot of money after the beginning
of the war. We decided that we will not
supply to [the hostile country] at all and
we will not procure anything from there
either. So, we had to consider other
markets and solutions [to develop our
market]. [PrecisionFlow]
Reassessing markets due to war
impacts in customer regions
The tool helps engineers to have all the
needed instructions in one place to make
the installation easier. [PaperTech]
Identifying the commercialized
digital tools offered by IT
suppliers
Understanding IT suppliers’
offerings and capabilities
That configurator is the IT supplier’s
system. They designed it for us. They
have a core system upon which our
solution is built. [ElectricCool]
Recognizing digital platform
capabilities of IT suppliers
We used their [IT supplier’s] resources in
the design, multiple iterations, and testing
of solutions. [GripMeter]
Making sense of IT suppliers’ role
and capabilities in enabling
service innovation
(continued )
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Table A1. Continued
Representative quote Codes Themes
Wehad started this already in 2014, orwas
it even earlier when we noticed that this
traditional maintenance service produces
very limited revenue? We had to think
about how to produce added value for
customers in other ways but also make
business and earn money with it.
[MarineMotive]
Embedding services at the core of
the business strategy
Positioning services within
the business strategy
Last year, we established this new
customer service department, and we then
wanted to make the customers aware that
they can always make direct contact with
our factory. I mean our service personnel
here. [PrecisionFlow]
Expanding service roles within
the business strategy
Services are just complementing our
product. At some moment in time, we did
consider launching servicesmore broadly,
but it would require a higher volume of
equipment deliveries to make it
financially viable. [HeavyLift]
Treating services as
complementary to the core
product
We have a certain person who is in charge
of service operations. He negotiates the
service tasks with customers, and when
the prices and schedules are fixed, he
delegates the work to suitable
maintenance experts who then plan the
trip [to customer site]. We are
international, visits to customers usually
take days or even a week. [GripMeter]
Assigning dedicated resources to
manage service operations
Allocating and managing
service resources
Collaboration is key in our projects, and
we continuously seek strong partnerships
to enhance our service offerings and
ensure customer satisfaction.
[ElectricCool]
Combining dedicated resources
with partnerships for service
delivery
We have largely outsourced all [service
operations]. We use external suppliers
instead. [PaperTech]
Relying on external suppliers for
service operations
We started to build this [capability] 10
years ago. We have included the basic
features in our solution for several years.
At that time customers, did not know to
demand it. [MarineMotive]
Demonstrating long-term
strategic innovation readiness
Building and leveraging
digital capabilities and
readiness
We have always had some very
technically advanced persons who have,
maybe, introduced some [modern
systems] and proposed that, maybe, we
could have something like this.
[PrecisionFlow]
Applying operational and
technical expertise to implement
new systems
We use the [software packages] for our
designwork.Andwe deliver themachines
and related work. The customer connects
them to [any other systems]. We would
not handle the software or connections.
[PaperTech]
Operating with limited resources
and technical readiness
(continued )
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Corresponding author
Beheshte Momeni can be contacted at: khadijeh.momeni@uwasa.fi
Table A1. Continued
Representative quote Codes Themes
Both we and the IT supplier communicate
with the customers. The IT supplier may
complete some updates or support
activities directly with the customer. They
have supplied us with solutions before, so
it is quite natural that they are involved.
[GripMeter]
Engaging in high involvement in
service development
Engaging with IT suppliers
based on the degree of
involvement
We understood the need for a [device
design] configurator, defined it, decided
its scope, and then negotiated with this IT
supplier to create the software. Now, we
utilize the same supplier every time the
configurator needs to be updated or
modified. [ElectricCool]
Maintaining moderate
involvement in service
development
It [the supplier’s involvement] is minimal,
primarily focusing on selling us the
software package or license
Restricting to basic involvement,
focused on software transactions
The analysis software is supplied by an IT
supplier. We pay a monthly fee per each
installed piece of equipment and a
separate software fee. Then, each
customer has a separate subscription to
the system. [MarineMotive]
Assuming continuous and
strategic responsibility for
digitally-enabled services
Defining and managing the
level of IT suppliers’
responsibility
They [IT supplier] collaborate with us to
manage changes, provide operative
support and timely updates.
[PrecisionFlow]
Collaborating with IT suppliers
for enhanced operational support
It is normal procurement and
communication: defining the scope,
discuss prices, their [IT supplier’s]
capabilities to help. [HeavyLift]
Managing IT supplier
relationships with limited
operational responsibility
Source(s): Authors’ own work
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