Digital servitization in healthcare: A paradox perspective on provider-customer-tensions
Type
conference paper
Date Issued
2022
Author(s)
Abstract
The existing literature on digital servitization scarcely addresses the complexities and conflicts originating from provider-customer interactions. This study approaches the topic with an original, relational perspective, adopting the paradox theory lens to investigate inter-organizational tensions between providers and customers of smart product-service-software systems in healthcare. Drawing on 32 interviews with providers and customers, we identify 15 tensions, highlight the prevailing context in which these tensions emerge, and derive 4 provider coping strategies. This study contributes to emerging digital servitization literature and sheds light on the nested nature of provider-customer tensions in an industry exhibiting very specific characteristics. Our findings provide evidence that digital servitization is more complex for providers than pursuing service growth alone. For managers, our study underlines the importance of context-specific decision-making and the necessity to act ambidextrously to cope successfully with conflicting internal and external expectations. Building up resources, developing capabilities, adapting processes, and defining new roles for digital is important but cannot alone help providers to overcome prevailing tensions with their customers. Instead, service providers are well-advised to pursue and develop customer-segments-specific strategies and business models while learning to accept and deal with persistent trade-offs and conflicts.
Language
English
Keywords
Digital servitization
tensions
paradox theory
healthcare
Event Title
International Conference on Business Servitization
Event Location
Malaga
Event Date
17. November 2023
Contact Email Address
thomas.friedli@unisg.ch
Additional Information
https://www.servitization.org/p/servitization-2022.html