Unleashing digital servitization and service innovation: how decision-making logics and organizational learning enable coping with implementation process complexities

Abstract

Purpose

This study aims to explore how different decision-making logics (DML) and organizational learning (OL) styles are used and combined by project managers to navigate the complexities of Digital Servitization (DS) and Digital Service Innovation (DSI) projects. Specifically, the research shows the impact and interplay between the two managerial levers OL and team-level DML, and how these influence and substitute each other.

Design/methodology/approach

It builds on a retrospective longitudinal study of project-level cases within a high-tech multinational company active in the aerospace industry and applies a systematic combining approach and narrative analysis of critical, decisive events. The research zooms in on the application of OL (i.e. adaptive versus generative learning) and DML (effectuation versus causation) while coping with the experienced complexity during the implementation process.

Findings

Teams seek relief from complexities during the DS/DSI journeys by combining different managerial levers over time. The paper develops a mid-range theory with propositions and outlines practical recommendations.

Research limitations/implications

This study’s research limitations include its single-sector focus and reliance on a small number of case studies, which does not allow generalization across industries or different contexts. Future research should explore diverse industries and incorporate broader quantitative methods to validate the proposed managerial frameworks.

Originality/value

A framework describing how managers alternate DML and OL styles during their DS/DSI transitions is developed. Contrary to earlier belief, the alternations of logics and styles do not follow a “predetermined sequence” as planned but are developing rather in a flexible, recurrent and emergent manner.