Enhancing business-to-business relationship value using service digitalization- opportunities and challenges.

Technological developments of the past two decades in the form of digitalization have tremendously changed how Business-to-Business (B2B) services are built, delivered, and consumed, offering new ways of creating value. Although digitalization has been common for quite some time, academic and practical engagement in this field accelerated recently, as the restrictions of the COVID-19 pandemic laid a path for digital to become the ‘new normal’. Digitalization is an indispensable element both today and in the future business environment. Despite the availability of technology, opportunities for value enhancement, and greater willingness of business customers to engage in digital formats, the adoption of digitalization in B2B services remains highly variable throughout sectors, service fields, and firm sizes. Explanations for this are numerous, wide-ranging, and include the growing complexity of B2B services; significant failure rates of digitalization projects, as high as 90%; and the fact that investments in digitalization often do not deliver the expected return on investment, an effect known as the ‘digitalization paradox’ (Gebauer et al., 2020; Ramesh & Delen, 2021). Taken together, these factors make B2B service digitalization a highly interesting but challenging field for both practice and academia. Therefore, this thesis aims to shed light on the field of B2B service digitalization by providing in-depth insights into the service digitalization avenues in which B2B companies can engage, the value that is generated, and the corresponding challenges to be considered. In detail, three research questions (RQ’s) are addressed: • What is the potential of service digitalization in B2B relationship value management? • What factors influence the value in practice perception of service digitalization in B2B relationship management? • How do B2B companies manage service digitalization projects in practice, and what are the potential challenges and learnings? Building on a literature review of key themes, qualitative research based on semi-structured interviews was undertaken in two stages. In stage one, latest in-practice knowledge from eight consultants in the B2B digitalization space was gathered. In stage two, insights from two corporate B2B firms were analysed in two case studies, with 17 key informants, who have engaged in different business service digitalization activities to increase relationship value. Two service digitalization avenues were created to lift value, one based on improvements in efficiency, the other on enhanced effectiveness. Propositions are presented to enrich service digitalization research in the field of B2B digitalization influence factors, cost- and benefits categorization, and programme management elements. In addition, a set of challenges and corresponding learnings are proposed along six dimensions (Vision, Business Model, People, Technology & Data, Change Management & Financial Aspects). A service digitalization relationship value enhancement framework is proposed that links service digitalization, relationship value, and technology adoption theory in B2B services. In addition to real-life insights from the case studies, this framework can be used by practitioners to better sell, plan, and steer their service digitalization activities in B2B services.