Behind the Scenes of Digital Servitization: Actualizing IOT-Enabled Affordances

Abstract
Manufacturers are increasingly transforming through servitization, and the Internet of Things (IoT) plays a crucial enabling role in this transformation. Current literature identifies the various opportunities the IoT creates that enable servitization but fails to explain the mechanisms required to capitalise on these opportunities. By conducting a multiple-case study of six manufacturing firms and applying an affordance theory approach, this study develops a framework to explain the mechanisms that capture the IoT opportunities in a servitization context. The affordance theory helps to identify three types of affordances and associated actualization mechanisms that are responsible for the contributions made by the IoT. This study provides a framework for manufacturers to examine the IoT contributions and associated actualization efforts required to achieve their servitization objectives. The study adds to the understanding of IoT contributions in the servitization context and the exploration of the affordance theory and its extensions on an organisational level.