Digital Product-Service Innovation and Sustainability: A Multiple-Case Study in the Capital Goods Industry

Digitalisation, servitisation, and sustainability are keywords for the current and future development of the manufacturing industry. However, their interaction in the context of an organisation and its supply chain is unclear. This study examines how digital product-service innovation (PSI) or digital servitisation affects sustainability, considering the triple bottom line perspective, as well as identifies the underlying causes. Moreover, this study analyses the role played by supply-chain strategic collaboration, both internal and external to the company, in digital PSI and sustainability. Using a multiple-case study methodology and B2B market perspective, four companies belonging to the capital goods industry were analysed. Our findings indicate that digitalisation is leveraging both basic and advanced services in their impact on economic and environmental sustainability dimensions, while the results are limited in social sustainability. In addition, supply-chain integration is relevant for digital PSI. Internal integration is required for both basic and advanced services, while external integration is especially important in advanced services. We conclude by emphasising that companies should acquire digital capabilities to develop defensive and offensive business strategies that ultimately affect sustainability.