The role of transformational leadership in navigating digital servitization
Digital servitization converges two current innovation activities in industrial companies: shifting from product-oriented to service-oriented business models and integrating digital technologies in market offerings. Adding digitalized services offers significant growth and diversification opportunit...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-05-01
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| Series: | Sustainable Technology and Entrepreneurship |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2773032825000033 |
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| author | Florian Tagscherer Claus-Christian Carbon |
| author_facet | Florian Tagscherer Claus-Christian Carbon |
| author_sort | Florian Tagscherer |
| collection | DOAJ |
| description | Digital servitization converges two current innovation activities in industrial companies: shifting from product-oriented to service-oriented business models and integrating digital technologies in market offerings. Adding digitalized services offers significant growth and diversification opportunities, but companies have struggled to reap its potential. Establishing digital servitization business models is underpinned by complexity, making it difficult for companies to manage. Digital servitization is a relatively new research stream, especially needing more guidance on how companies should be led to succeed in its implementation. We addressed this research gap and conducted thirty semi-structured interviews with leaders in digital servitization holding ranks ranging from first-level Managers to Vice Presidents and Executives with more than 20 years of leadership experience active in industries such as machinery, electrical equipment, or IT services. We identified transformational leadership as vital to building digital servitization business models and navigating their inherent complexity and change management requirements. Our findings include three focus areas as recommendations for leadership: giving direction, being employee-oriented, and creating an innovative and collaborative environment. Furthermore, transactional leadership aspects should be considered for specific use cases to maintain the business model, for example, improving after a certain amount of time or managing crisis mode. |
| format | Article |
| id | doaj-art-4fcc459620204b7e823e3a1277e69cf1 |
| institution | Kabale University |
| issn | 2773-0328 |
| language | English |
| publishDate | 2025-05-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Sustainable Technology and Entrepreneurship |
| spelling | doaj-art-4fcc459620204b7e823e3a1277e69cf12025-01-31T05:12:49ZengElsevierSustainable Technology and Entrepreneurship2773-03282025-05-0142100098The role of transformational leadership in navigating digital servitizationFlorian Tagscherer0Claus-Christian Carbon1Department of General Psychology and Methodology, University of Bamberg, Markusplatz 3, 96047 Bamberg, Bavaria, GermanyCorresponding author.; Department of General Psychology and Methodology, University of Bamberg, Markusplatz 3, 96047 Bamberg, Bavaria, GermanyDigital servitization converges two current innovation activities in industrial companies: shifting from product-oriented to service-oriented business models and integrating digital technologies in market offerings. Adding digitalized services offers significant growth and diversification opportunities, but companies have struggled to reap its potential. Establishing digital servitization business models is underpinned by complexity, making it difficult for companies to manage. Digital servitization is a relatively new research stream, especially needing more guidance on how companies should be led to succeed in its implementation. We addressed this research gap and conducted thirty semi-structured interviews with leaders in digital servitization holding ranks ranging from first-level Managers to Vice Presidents and Executives with more than 20 years of leadership experience active in industries such as machinery, electrical equipment, or IT services. We identified transformational leadership as vital to building digital servitization business models and navigating their inherent complexity and change management requirements. Our findings include three focus areas as recommendations for leadership: giving direction, being employee-oriented, and creating an innovative and collaborative environment. Furthermore, transactional leadership aspects should be considered for specific use cases to maintain the business model, for example, improving after a certain amount of time or managing crisis mode.http://www.sciencedirect.com/science/article/pii/S2773032825000033Digital servitizationTransformational leadershipDigital transformationManaging complexityChange management |
| spellingShingle | Florian Tagscherer Claus-Christian Carbon The role of transformational leadership in navigating digital servitization Sustainable Technology and Entrepreneurship Digital servitization Transformational leadership Digital transformation Managing complexity Change management |
| title | The role of transformational leadership in navigating digital servitization |
| title_full | The role of transformational leadership in navigating digital servitization |
| title_fullStr | The role of transformational leadership in navigating digital servitization |
| title_full_unstemmed | The role of transformational leadership in navigating digital servitization |
| title_short | The role of transformational leadership in navigating digital servitization |
| title_sort | role of transformational leadership in navigating digital servitization |
| topic | Digital servitization Transformational leadership Digital transformation Managing complexity Change management |
| url | http://www.sciencedirect.com/science/article/pii/S2773032825000033 |
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