Transformation of Manufacturing Firms: Towards Digital Servitization

Digital technologies are disrupting servitization in manufacturing firms. In the last decade, manufacturing firms transform their business models from traditional offers of physical goods to digital solutions for their customers. In this paper, we investigate the transformation of digital servitization in manufacturing firms. We challenge relations between traditional and digital service portfolio offered by applying linear regression on the data obtained from 690 manufacturing firms from the Republic of Serbia from 2015 to 2020. The results show that firms significantly increase the offer of traditional services from 2015 to 2018. Moreover, results demonstrate a rapid growth of digital services in the period from 2018 to 2020. The application of traditional and digital services in manufacturing firms increased by 30% in five years.