Pricing configurations in digital servitization: How industrial firms make digital services commercially viable

dc.contributor.authorRaja, Jawwad Z.
dc.contributor.authorGolgeci, Ismail
dc.contributor.authorFrandsen, Thomas
dc.contributor.authorParida, Vinit
dc.contributor.departmentfi=Ei alustaa|en=No platform|
dc.contributor.orcidhttps://orcid.org/0000-0002-6853-3255
dc.date.accessioned2026-08-05T11:18:00Z
dc.date.issued2026
dc.description.abstractAs industrial business-to-business firms increasingly pursue digital servitization to generate recurring revenues, making digital services commercially viable remains difficult, especially when value capture depends on customer access, data permissions, and intermediary-governed contractual arrangements. Although prior research has emphasized value creation and capability development in digital servitization, we know little about how industrial firms make digital-service pricing commercially viable. In this paper, we undertake a longitudinal exploratory qualitative case study of a leading European OEM operating in a mission-critical context. Our findings make three contributions. First, we develop a pricing-conditions perspective by showing that digital-service pricing depends on data access and interpretability, measurability and attribution, governance positioning, and service architecture and repeatability. Second, we identify four digital-service commercialization patterns of SLA-enhancing, incident-based, predictive, and planning-oriented, and enabling and infrastructural services that explain why digital services differ in how they can be packaged and defended commercially. Third, we develop four pricing configurations, i.e., ad hoc, customized, standardized, and value-based pricing, showing that pricing viability depends less on selecting a pricing approach than on aligning the service's commercial role, customer-value locus, feasibility conditions, and commercial and governance arrangements. In this sense, pricing in digital servitization is better understood as a configurational approach than an isolated price-setting decision and strategy. By doing so, the study extends research on digital servitization and industrial pricing, offering a configurational understanding of how, and under what conditions, digital-service pricing becomes commercially viable.en
dc.description.reviewstatusfi=vertaisarvioitu|en=peerReviewed|
dc.format.pagerange50-67
dc.identifier.citationRaja, J. Z., Golgeci, I., Frandsen, T., & Parida, V. (2026). Pricing configurations in digital servitization: How industrial firms make digital services commercially viable. Industrial Marketing Management, 137, 50-67. https://doi.org/10.1016/j.indmarman.2026.07.006
dc.identifier.urihttps://osuva.uwasa.fi/handle/11111/21133
dc.identifier.urnURN:NBN:fi-fe20260805115330
dc.language.isoen
dc.publisherElsevier
dc.relation.doihttps://doi.org/10.1016/j.indmarman.2026.07.006
dc.relation.ispartofjournalIndustrial marketing management
dc.relation.issn1873-2062
dc.relation.issn0019-8501
dc.relation.urlhttps://doi.org/10.1016/j.indmarman.2026.07.006
dc.relation.urlhttps://urn.fi/URN:NBN:fi-fe20260805115330
dc.relation.volume137
dc.rightshttps://creativecommons.org/licenses/by/4.0/
dc.rights.copyright© 2026 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
dc.source.identifierWOS:001828886100001
dc.source.identifier2-s2.0-105044897646
dc.source.identifiere7512d81-3744-4902-a554-708442f7a252
dc.source.metadataSoleCRIS
dc.subjectDigital servitization
dc.subjectDigital services
dc.subjectPricing configurations
dc.subjectValue capture
dc.subjectSystems integrators
dc.subject.disciplinefi=Kansainvälinen liiketoiminta|en=International Business|
dc.subject.disciplinefi=Strateginen johtaminen|en=Strategic Management|
dc.titlePricing configurations in digital servitization: How industrial firms make digital services commercially viable
dc.type.okmfi=A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä (vertaisarvioitu)|en=A1 Journal article (peer-reviewed)|
dc.type.publicationarticle
dc.type.versionpublishedVersion

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