Digital Service Innovation in Plant and Mechanical Engineering: Exploring Contextual Factors in the Innovation Process

Abstract

In recent years, the transformation from pure product businesses to data-based service innovation in various industries has intensified. This paper extends previous studies on „servitization“, i.e. the transition from product manufacturer to service provider, focusing on digital service innovations. We develop an integrative model to examine the technological, organizational, and environmental context as prominent components of the initiation, adoption, and routinization of digital service innovations. Drawing on the Technology-Organization-Environment (TOE) framework, different factors are identified and then validated by conducting ten expert interviews regarding their relevance to the innovation process of digital services in the plant and mechanical engineering industry. The results strongly suggest that the general TOE framework needs to be revisited and extended to be used in this specific context. The extended TOE framework can serve as a basis for studying contextual factors in digital service innovations and guide managerial decision-making.