Platform-based servitization and business model adaptation by established manufacturers

Digitization is receiving a lot of interest in recent servitization research, but the use of platform-based Industry 4.0 technologies to boost product-service innovation (PSI) is less covered. This study aims to explore how companies successfully leverage platforms for servitization in an Industry 4.0 context. Building on theories of PSI, platform leverage and business model adaptation (BMA), we use longitudinal and interpretive research methods to conduct an exploratory study of the servitization pathways of four Chinese textile and apparel manufacturing companies. Results reveal companies’ roadmaps in undertaking digital and smart servitization strategies enabled by platform leveraging, and show the implementation approaches for related BMA. Further analysis identifies platform-based servitization destinations and pathway dynamics. This study constructs a theoretical basis and a typology for explaining platform-based servitization. • This study explores how manufacturers leverage digital platforms for servitization. • We posit a theoretical framework for explaining platform-based servitization. • Three service destinations are non-digital, digital and smart servitization. • Platform leverage logics can be applied in the organizational front- and back-end. • Companies follow a sequential and simultaneous business model adaptation path.