Title: IoT platform stickiness and positioning in the value chain: considerations for a sub-supplier

Authors: Anna Marie Dyhr Ulrich; Svend Hollensen; Pernille Eskerod

Addresses: Department of Entrepreneurship and Relationship Management, Faculty of Social Science, University of Southern Denmark, Alsion 2, DK-6400 Sønderborg, Denmark ' Department of Entrepreneurship and Relationship Management, Faculty of Social Science, University of Southern Denmark, Alsion 2, DK-6400 Sønderborg, Denmark ' Department of Business and Management, Webster Vienna Private University, Palais Wenkheim, Praterstr. 23, A-1020 Vienna, Austria

Abstract: This article aimed to investigate strategic options for a sub-suppliers' position in the value chain regarding stickiness on IoT platforms. Findings from a qualitative explorative case study of two embedded cases reveal that IoT platform-based digital servitisation allows business model adaptations in the form of sub-suppliers moving forward in the value chain and getting closer to end customers - a more profitable position as sub-suppliers can add more services to their offerings. Our study describes how a digital servitisation process can involve IoT platforms. It highlights that a sub-supplier is in a trade-off decision, as the aim of getting closer (high stickiness) to end customers and consequently higher profit margins is connected to higher complexity and risks. In this context, selecting an IoT platform is a less risky 'in-between' option than selecting the traditional original equipment manufacturer business model regarding positioning further down the value chain.

Keywords: business model; trade-off decision; internet of things; IoT; platform stickiness; value chain; downstream; digital servitisation; sub-supplier.

DOI: 10.1504/IJVCM.2023.133077

International Journal of Value Chain Management, 2023 Vol.14 No.3, pp.309 - 324

Received: 19 May 2022
Accepted: 28 Dec 2022
Published online: 30 Aug 2023 *

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