Spiraling between learning and alignment toward digital service innovation

Abstract

Purpose-This study aims to develop insight and theory on the process toward digital service innovation (DSI), and how companies deal with the rising complexity associated with DSI through organizational learning and alignment, both inside and outside of the organization. Design/methodology/approach-In-depth, longitudinal case studies of three manufacturers are developed as illustration, based on purposeful sampling. Per case, multiple semi-structured interviews are conducted, and insights are validated through additional data gathering. Each company's DSI process is reconstructed through critical incident technique. Next, through systematic combining, a middle-range theory is developed by proposing a theoretical frame and propositions concerning the relations between DSI, learning and alignment. Findings-We posit that, as companies gradually develop and progress toward DSI, they deal with a rising degree of complexity, fueling their learning needs. Companies that are apt to learn pass through multiple cycles of learning and alignment to overcome specific complexities associated with different DSI stages, with each cycle unlocking new DSI opportunities and challenges. 2 Originality-This study applies a stage-based view on DSI combined with complexity management and organizational learning and alignment theory. It offers a theoretical frame and propositions to be used by researchers for future DSI related studies, and by managers to evaluate alternative DSI related strategies and implementation steps.