The role of platform for achieving complexity reduction and absorption in servitization

Purpose: This paper highlights mechanisms through which platforms can support companies in complexity management. In particular, the study aims at investigating the role of platforms in balancing complexity reduction and absorption in manufacturing companies which want to implement a servitization strategy. Design/methodology/approach: The paper links theoretical knowledge on complexity management with that of platforms, enlightening the potential of platforms to help managing environmental complexity. An exploratory research approach has been conducted according to the results of two case studies from a software producer (PTC) and a manufacturer (Siemens), providing platforms enabling services for servitized manufacturing companies. Findings: The study shows the mechanisms characterizing platforms for complexity management categorized according to their aims (reduction vs. absorption). Moreover, the results show that platform adoption allows to achieve a balance between complexity reduction and absorption. Originality/value: This paper elaborates on the effects of platforms in service-industry complexity management. Differently from the previous studies in the literature concerning these issues, platform-enabled complexity management is addressed both from complexity reduction and absorption perspectives. In addition, practical guidelines for practitioners are derived from the study.