A simultaneous relationship between digitalization and servitization? An application to Spanish importer manufacturing firms

Purpose: This work aims to study the relationships between digitalization and servitization of manufacturing firms and whether this relationship is stronger for importer firms. Design/methodology/approach: Using a dataset of Spanish manufacturing firms taken from the 2022 Spanish Survey on Business Strategies, a 3SLS (three-stage least squares) model was applied to 2028 firms. In addition, various models were fitted to subsamples to explore the effects of imports on the relationship between digital technologies and servitization. Findings: The results indicate that there are differences in the two opposite directions and that digital technologies affect servitization positively and not conversely; this is especially the case for small manufacturing firms. In addition, the results suggest that importing intermediate goods, considering the intensity and geographical diversification positively influences the relationship between digitalization and servitization only for high-import intensity firms. Research limitations/implications: This study contributes to the literature on digital servitization by providing support for the idea that digital technologies can positively affect servitization. In addition, these results address the need for a more nuanced discussion through importer intensity. Practical implications: Managers, especially from small manufacturing firms, should consider appropriate technology portfolio management and also consider the relationship between digital technologies and servitization as the initial step in the journey towards digital transformation. In addition, an international dimension should be considered when designing their digital servitization strategy. Originality/value: This work provides a basis for understanding the importance of importing intermediary goods when manufacturing firms are developing a digital servitization strategy.