Manufacturing firms are increasingly seeking to capture the potential of digitalization by transforming towards digital servitization. Yet, most manufacturers struggle to realize the value through digital servitization because it requires a sustained focus on forming ecosystem partnerships. Digital servitization research has long recognized the importance of ecosystem tranformation but much of the existing discussion on this interlink is fragmented and understudied. Therefore, this study’s purpose is to investigate how manufacturing firms engaged in digital servitization transform their ecosystems. To this end, we have examined the triggers, firm-level enablers, ecosystem phases and activities, and effects of ecosystem transformation in digital servitization. We provide a comprehensive review of the phases of ecosystem transformation including ecosystem formation, orchestration, and expansion as well as their associated activities. These findings have been consolidated into an integrative framework for ecosystem transformation and, based on this analysis, suggestions for future research are provided for digital servitization scholars.

Purpose: The purpose of this study is to understand how digital servitization enables the process of internationalization for industrial SMEs.

Design/methodology/approach: The present study has adopted an exploratory multiple case study, conducting a total of 40 interviews in a two-phased approach to data collection. The first phase consisted of exploratory interviews with twenty-six industrial SMEs connected to the manufacturing industry in Sweden and Finland. Then, six SMEs were selected in the second phase to participate in additional in-depth interviews.

Findings: First, this study identifies three gradual enabling phases concerned with the digital service maturity of SMEs consisting of digital awareness, digital service innovation and digital service mass customization. Second, the three interdependent phases of ecosystem knowledge synergy, ecosystem integration and ecosystem value co-creation were identified to improve ecosystem involvement. Finally, a process framework has been developed for SME internationalization consisting of a digital servitization innovation strategy, a digital servitization ecosystem strategy and a digital servitization scaling strategy.

Originality/value: The present research contributes to how digital servitization enables SME internationalization by demonstrating how the development of digital service offerings and ecosystem partnerships supports the internationalization process. This research extends the literature by proposing a process framework for the digital-servitization-enabled internationalization of SMEs. This process perspective provides a richer explanation of the complex interplay between servitization, digitalization and ecosystems choices, which supports the expansion into international markets.

The purpose of this study is to investigate how large manufacturing firms can orchestrate their ecosystem for the successful co-creation of data-driven digital services and solutions as a way to achieve sustainable industry benefits. An exploratory single-case study approach has been adopted for this study, which included 23 in-depth interviews conducted with informants from seven Swedish and international companies involved in a transportation ecosystem. Based on the analysis, this study has developed a multi-level framework for ecosystem orchestration that contains three main operational levels: individual, organization, and ecosystem, with an integrated sustainable industry benefits section as the outcome of this process. By providing a detailed account of ecosystem orchestration, this study contributes to the successful co-creation of digital services and solutions. In addition, insights from this research can be used as a continuous evaluation and improvement tool for managers to orchestrate their ecosystem for digital servitization.

Manufacturing companies are introducing innovative ways to facilitate the sustainable transition of their customers’ operations. The emerging literature on digital servitization proposes numerous factors, such as the use of advanced artificial intelligence analytics, orientation toward outcomes, and aligning ecosystem partnerships, which can potentially influence the sustainable performance of industrial customers. However, there is currently a lack of understanding regarding how these factors interact to result in sustainable outcomes. Hence, this study seeks to shed light on these complex relationships by identifying viable smart solution strategy configurations for achieving customer sustainable performance. Drawing on a dataset of 180 Swedish manufacturing firms, this study uses a configurational comparative method—namely, fuzzy-set qualitative comparative analysis—to identify the impact of different configurations of “AI-driven optimization,” “outcome orientation,” “value co-creation,” and “ecosystem orchestration” conditions on the realization of customer sustainable performance. This study has identified five smart solution strategies that empower manufacturers to realize sustainable performance for their customers. Among the five configurational strategies identified, the first configurational strategy appears to be the most prominent, as it is based on an outcome-based approach in which the firm uses its technological expertise and its ecosystem partnerships to take over customer operations. Thus, this study contributes to the ongoing discussion in digital servitization on its enabling role for industrial sustainability practices.