Reverse knowledge transfer in digital servitization: A global approach to service provision

• Purpose: Digital servitization provides new opportunities for manufacturers to compete acrossmultiple markets. However, global digital service provision is complex and knowledge intensive, as itrequires alignment with subsidiaries to ensure adaptation to local customers’ needs. The purpose ofthis study is to understand how manufacturers engaging in digital servitization can leverage reverseknowledge transfer (RKT) from subsidiaries to achieve global competitive advantages.Design/Methodology/Approach: A qualitative multiple-case study including 43 interviews is used toinvestigate the RKT in three manufacturer-subsidiary cases taking place during the provision of digitalservitization solution packages in progressive global markets.Findings: This study identifies three crucial types of subsidiary generated knowledge namely, digitalknowledge, customer knowledge, and needs analysis knowledge. Leveraging such knowledge,manufacturers are able to mitigate the operational challenges of global digital service provision, andrealise the benefits in the forms of financial performance, efficient rollout of the digital servitizationsolution, and the expansion of the digital service portfolio.Originality/Value: Even though there has been increasing interest of scholars towards global digitalservice provision, there is limited knowledge about how manufacturers manage knowledge flowsbeyond the boundaries of a single market. This study extends current knowledge by focusing onmanufacturers’ digital service provision in multiple global markets. In addition, by focusing onsubsidiaries’ perspective, this study brings forward their critical role and impact on the achievementof global competitive advantages. This study introduces the concept of RKT in digital servitizationliterature exploring the role and impact of the subsidiary, actor that has received scant attention inthe servitization literature. 

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Keyword

digital servitization

global markets

subsidiary

reverse knowledge transfer

Entreprenörskap och innovation

Entrepreneurship and Innovation

Publication and Content Type

ref (subject category)

kon (subject category)