Evolving dynamic capabilities : microfoundations in digital servitisation

Abstract

This study explored the microfoundations of dynamic capabilities, focusing on their role in transitioning from servitisation to digital servitisation in five South African sectors: Financial Services, Telecommunications, Professional Services, Technology Enablement Services and Manufacturing. Using a qualitative approach and semi-structured interviews with 13 senior decision-makers, the study explores how ecosystem dynamics, organisational capabilities and contextual factors influence this transition. The findings highlight the importance of linking technology projects to strategic objectives, promoting initiative and flexibility and adapting performance indicators to sectoral challenges and enablers. The research contributes to theory by a deeper understanding of the dynamic capabilities framework and presenting nuanced themes such as the societal impact of technology and the strategic role of cybersecurity. It extends and contributes to knowledge by showing how microfoundations' interdependencies support innovation and organisational resilience. To enable a methodological understanding of digital servitisation, a conceptual framework was created that integrates contextual factors, technology considerations and performance elements for microfoundations of digital servitisation. The study provides practical recommendations for improving stakeholder engagement, organisational agility and value realisation in digital transformation projects.