Unraveling Paradoxical Tensions in Digital Servitization Ecosystems : A case study in the mining industry

Abstract: Purpose - This study aims to understand what paradoxical tensions arise within an ecosystem when companies collectively pursue digital servitization and how these tensions impact value co-creation. Method -  The study is an explorative single-case study based on the mining industry in Sweden and involves respondents from industry-leading organizations. A total of 30 interviews were conducted and analyzed through a thematic analysis. Findings – Our study has identified five paradoxical tensions that arise during the process of digital servitization in ecosystems. These tensions are the paradox of competition and cooperation, the tension between IP sharing and control preservation, the tension of skill transition and reluctance to change, the tension between traditional identity and digital identity, and the need to balance data access and data security. The findings also identified the impact that the tensions have on value co-creation. Theoretical contributions – Our study demonstrates the intricate nature of tensions within ecosystems, revealing their multifaceted origins stemming from factors such as ecosystem coopetition, organizational identity dynamics, and data utilization practices. Additionally, we highlight that these tensions can manifest at two levels: within organizations and between ecosystem partners. Our research provides a more nuanced understanding of the complex and multi-faceted nature of tensions in ecosystems. Managerial contributions – This study provides valuable insights for managers of the impact on value co-creation of paradoxical tensions within a digital servitization ecosystem. We highlight the significance of recognizing and addressing tensions in ecosystem collaborations. By unpacking the complexity of tensions, we contribute to mitigating conflicts and enhancing the effectiveness of business ecosystems in practical settings. Limitations – This research is based on a single case study in the mining industry. Therefore, there are opportunities for future research to investigate the applicability of the findings in other industrial contexts.