Digital transformation represents a compelling opportunity for manufacturing companies to enhance their competitiveness. This transformative journey offers myriad possibilities, including improved connectivity between workers and machines, as well as seamless machine-to-machine interactions. However, many manufacturing companies encounter challenges when attempting to implement digital transformation effectively. The process of digital transformation is often slow, and most companies find themselves in the early stages of adoption, grappling with the ambiguity surrounding the associated technologies. A systematic approach for the implementation of digital transformation is still elusive for many manufacturing companies. The number of studies exploring digital transformation is increasingly growing, encompassing various sectors and domains. However, within the manufacturing sector, there remains a need for further research and clarity on systematic implementation approaches. To address these issues, this research undertakes a comprehensive analysis to identify the critical factors that influence digital transformation in the manufacturing sector. The objective of this research is to identify the factors that drive the success of digital transformation in manufacturing companies while also uncovering factors that, when neglected, could lead to failure. Through a systematic literature review, this research identifies 11 critical factors. These factors serve as the basis for developing the ARTO model, a structured framework comprising four distinct categories: "Awareness-related factors," "Readiness-related factors," "Technology Selection-related factors," and "Operations-related factors." Moreover, this research incorporates expert perspectives gathered through a survey to refine the ARTO model. This study offers the ARTO model and digital transformation definition as practical tools for successfully implementing digital transformation in manufacturing companies, while also delineating the intricate relationships among the crucial factors. By shedding light on the factors underpinning digital transformation in the manufacturing sector, this research contributes to the ongoing discourse and facilitates more effective adoption of digital transformation strategies.

Service-dominant logic (SDL) provides a conceptual understanding of and widens the view on value creation in service innovation for product-centric companies. However, empirical research linking SDL and service innovation is still limited albeit expanding. This study provides insights beyond existing discussions on product and service dimensions using the theoretical lens of the value logic perspective. More specifically, the purpose of this study is to examine how value can be understood, targeted, and created in the pursuit of service innovation by product-centric manufacturing companies. Building on a previous investigation of two multinational product-centric manufacturing companies, this paper identifies and develops a theoretical model to describe the space shift in service innovation with four different kinds of value logics, namely, product-based value logic, service-based value logic, virtual-based value logic, and systemic-based value logic. Using a digitalization-driven new service innovation, namely the My Control System, which is a web-based service delivery platform, this paper describes space shifts to enhance value through four value logics as efforts. Further, challenges associated with different value logics are described in terms of complexity traps and service gaps. The study also contributes to bridging the gap between SDL theory and practice by developing a midrange theoretical model for value creation as a specification and amendment to SDL that supports SDL-guided service innovation and servitization in practice.

Purpose: The purpose of this paper is to advance the understanding of paradoxes, underlying tensions and potential management strategies when integrating digital technologies into existing lean-based production systems (LPSs), with the aim of achieving synergies and fostering the development of production systems.Design/methodology/approach: This study adopts a collaborative management research (CMR) approach to identify patterns of organisational tensions and paradoxes and explore management strategies to overcome them. The data were collected through interviews and focus group interviews with experts on lean and/or digital technologies from the companies, from documents and from workshops with the in-case researchers.Findings: The findings of this paper provide insights into the salient organisational paradoxes embraced in the integration of digital technologies in LPS by identifying different aspects of the performing, organising, learning and belonging paradoxes. Furthermore, the findings demonstrate the intricacies and relatedness between different paradoxes and their resolutions, and more specifically, how a resolution strategy adopted to manage one paradox might unintentionally generate new tensions. This, in turn, calls for either re-contextualising actions to counteract the drift or the adoption of new resolution strategies.Originality/value: This paper adds perspective to operations management (OM) research through the use of paradox theory, and we (1) provide a fine-grained perspective on why integration sometimes “fails” and label the forces of internal drift as mechanisms of imbalances and (2) provide detailed insights into how different management and resolution strategies are adopted, especially by identifying re-contextualising actions as a key to rebalancing organisational paradoxes in favour of the integration of digital technologies in LPSs.