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Purpose–The purpose of this paper is to explore tensions associated with digital servitization, both pertaining to business growth (intra-firm level) and supply chain development (inter-firm level). Specifically, the study relies upon paradox theory as a framework to identify paradoxical tensions. Design/methodology/approach–Based on cases from aerospace and maritime industries, this qualitative study adopts an exploratory multiple-case study approach. The in-depth data were collected through 56 semi-structured interviews and multiple site visits. Findings–Eight paradoxical tensions associated with digital servitization were identified. While these tensions are specific to digital servitization, some of them are rooted in ‘traditional’servitization. The findings suggest that four of the identified tensions–such as the tension of platform-based coopetition–impact supply chain development. Interestingly, most tensions rooted in ‘traditional’servitization–such as the tension of performance priorities–characteristically affect business growth.

Originality/value–By proposing a conceptualisation of paradoxical tensions for digital servitization, this research contributes to the literature on servitization and on operations and supply chain management. Specifically, the identified paradoxical tensions are categorised along the dimensions of two impact areas: business growth and supply chain development. The tensions are also reviewed as either rooted in ‘traditional’servitization or as characteristically novel for digital servitization settings.