Toward Economic Sustainability: Exploring Business Model Innovation in Servitization Transformation Enterprises through Resource Orchestration

Abstract

This paper studies the role of resource orchestration in promoting business model innovation in servitization transformation enterprises to achieve sustainable development. Taking Sany Heavy Industry as the research focus, a three-level evaluation index is constructed to identify the resources and capabilities that have a key impact in the process. Through the continuous decomposition and integration of resources and capabilities, the resource orchestration behavior of business model innovation in the process of enterprise service transformation is obtained. The research results reveal the strategic evolution from “acquisition–stabilization–mobilization” to “accumulation–enrichment–coordination”, and finally to “accumulation–pioneering–deployment”, which plays an important role in redefining servitization value creation and transforming business model logic. This research helps to understand how resource orchestration promotes business model innovation in the context of servitization transformation to achieve the sustainable development of enterprises.

1. Introduction

In the current epoch, defined by the convergence of global economies and the rapid evolution of information technologies, the manufacturing sector encounters challenges of a transformative nature that are historically unparalleled. The rise of consumer preferences for personalized and varied products, coupled with the escalation of market competition, has rendered the traditional manufacturing model—focused on product output—inadequate for the dynamic changes in the marketplace. As a result, there is an imperative for manufacturing firms to transition toward a servitization model to enhance their competitive edge and ensure the enduring viability of economic growth.

Economic sustainability, which emphasizes the pursuit of long-term economic health without the sacrifice of environmental preservation and social justice, emerges as a central tenet in this context. It serves as the critical link between the strategic reconfiguration of manufacturing firms and the overarching objectives of societal welfare and environmental conservation [1].

The notion of servitization transformation in manufacturing involves a strategic pivot from the conventional product-focused paradigms to a holistic model that integrates both “product and service”. Such an integrated model is engineered to foster a deep symbiosis between products and services, establishing a new manufacturing paradigm that is competitive and economically sustainable. This paradigmatic shift is imperative for firms to meet market demands for customization and diversity more effectively while concurrently reducing production costs and enhancing product value, securing a competitive edge and advancing economic sustainability.

Achieving a servitization transformation is not a fleeting endeavor; it requires firms to have the necessary resources and competencies and to undertake significant innovation in their business models. Business model innovation is essential for firms to generate revenue and maintain competitiveness within an economically sustainable framework. It encompasses a radical reconfiguration of the mechanisms for value creation, delivery, and capture, aligning with market dynamics, meeting consumer expectations, and establishing competitive advantages that account for long-term economic, environmental, and social outcomes.

The theoretical framework of resource orchestration provides substantial support for the servitization transformation of manufacturing enterprises. It highlights the importance of effective resource allocation and utilization in achieving strategic objectives, including those pertaining to economic sustainability. This framework aids enterprises in identifying and leveraging key resources, optimizing resource allocation, and facilitating business model innovation [2]. Within the context of resource orchestration, the conceptual scope of economic sustainability can be further expanded and deepened. Initially, economic sustainability mandates that enterprises enhance the efficiency of resource utilization, minimize waste, and ensure the recycling of resources. Resource orchestration plays a pivotal role in this process by optimizing resource allocation to reduce costs and augment production efficiency [3]. Subsequently, resource orchestration focuses not only on short-term gains but also on the creation of long-term value. This aligns with the objectives of economic sustainability, which entails achieving long-term business growth and market competitiveness through continuous innovation and improvement [4]. Furthermore, economic sustainability necessitates ongoing innovation to propel technological advancements and transformations in business models. Resource orchestration facilitates innovative activities by integrating and leveraging resources both within and beyond the enterprise, supporting the development of new products and services [5]. Ultimately, economic sustainability demands that enterprises establish positive relationships with all stakeholders, including employees, customers, suppliers, and communities [6,7]. Resource orchestration ensures these relationships are effectively managed and maintained, supporting the sustainable development of the enterprise [8].

By aligning resource orchestration with the goal of economic sustainability, manufacturing enterprises can ensure that their transformation is profitable, competitive, and mindful of the long-term health of the environment and society. This alignment is essential for cultivating a manufacturing sector that is resilient, adaptive, and equipped to confront the challenges of the 21st century.

Previous research has extensively explored the shift toward servitization models in manufacturing, highlighting the benefits of integrating product and service offerings to enhance customer value and improve operational efficiency [9,10]. However, there remains a gap in understanding how manufacturing firms can effectively leverage resource orchestration to not only meet these challenges but also to ensure economic sustainability in the long term. Despite the growing body of literature on business model innovation, research specifically addressing the intersection of resource orchestration and economic sustainability within the context of servitization manufacturing transformations is scarce. This paper aims to fill this gap by examining the strategic practices of Sany Heavy Industry and their implications for sustainable growth.

This paper presents a case study of Sany Heavy Industry, a leading entity in the construction machinery sector, which has exemplified a successful evolution from a provider of products to an integrator of services through pioneering initiatives such as the establishment of 6S stores and the ECC global enterprise control center. The analysis of Sany Heavy Industry’s strategic practices aims to elucidate the mechanisms and evolutionary trajectories of business model innovation oriented toward service transformation with a particular emphasis on how these practices contribute to economic sustainability through resource orchestration.

The paper offers theoretical foundations and practical guidance for enterprises undergoing servitization transformation, enriching the academic discourse and enhancing the scholarly community’s comprehensive understanding of this evolutionary trajectory within the manufacturing industry.

2. Literature Review

2.1. Servitization Transformation of Manufacturing Enterprises

In 1988, Vandermerwe and Rada first defined the term “servitization”, elucidating it as the strategic expansion of manufacturing firms into the service sector. This definition emphasizes the value addition to core products through services and the construction of a “product + service” integrated system centered around customer needs, encompassing elements such as goods, services, support, self-service, and knowledge, as a means to gain a market competitive advantage. Servitization is a new form of value creation for manufacturers [11]. Servitization transformation requires manufacturers to change the way of providing value [12]. As the practice of servitization transformation has evolved, so too has its conceptual understanding, expanding and maturing with the contributions of scholars worldwide.

Scholarly interpretations of servitization transformation can be broadly categorized into three primary dimensions: strategic outcomes, transformation processes, and innovation in business models and value creation. When examined through the lens of strategy and outcomes, servitization transformation is perceived as a strategic shift for firms to secure a competitive advantage, emphasizing alterations in the scope, scale, and nature of the services offered. This perspective has given rise to strategic management concepts such as “product–service systems”, “service-dominant logic”, and the development of “service ecosystems”.

The transformation process is characterized as a dynamic progression, illustrating the gradual metamorphosis of manufacturing firms from product creators to service providers. Central to this narrative is the iterative evolution of business segments and processes within these enterprises. Research in this domain has predominantly concentrated on the delineation of transformation stages and the progression of evolution with notable models including the tripartite framework proposed by White’s quartet of stages [13].

Lastly, from the vantage point of business model innovation and value creation, servitization transformation is regarded as the reconfiguration of business models to accommodate shifts in business orientation. The essence of this view is the reconstitution and generation of value logic, which is facilitated by elements such as platform networks, stakeholder engagement, and knowledge sharing [14]. Collectively, the academic comprehension of servitization transformation within the manufacturing sector has undergone a discernible evolution, transitioning from nebulous to defined concepts and from superficial to profound insights.

2.2. Business Model Innovation

The business model serves as the foundational architecture for the creation, delivery, and capture of value, elucidating the internal logic by which enterprises achieve these objectives. Business model innovation, in turn, refers to the enterprise’s adoption of a novel business model, offering new value propositions to redefine the creation, delivery, and capture of value for various stakeholders. This process entails organizational-level changes within the enterprise and is directed toward exploring new methods and strategies for value creation and capture [15]. In recent years, business model innovation has gained widespread traction in practice, with the industry recognizing that even in mature markets, unique business models can provide companies with a distinctive edge.

Current research on business model innovation broadly encompasses three primary directions: initially, it concentrates on defining and understanding its connotations; later, it delves into an in-depth analysis of the drivers and influencing factors, enhancing the research’s universality through precise measurements; and more recently, it has concentrated on revealing innovation pathways and intrinsic mechanisms through case studies.

The business model encompasses multidimensional elements such as the enterprise’s value proposition, customer relationships, and resources and capabilities. Academics perceive it differently: Timmers views it as an architectural template for products, services, and information flows, whereas Magretta sees it as a reflection of organizational operations and transaction structures among stakeholders [16]. Guldmann and Huulgaard summarize the value creation process of business model with three basic components, namely: the value proposition, the value creation and delivery, and the value capture [17]. This process necessitates breakthroughs in various substructures such as resources, products, and technologies [18,19]. It reflects the procedural aspect of business model innovation and underscores its continuous, firm-level behavioral change. Consequently, this study will concentrate on these two characteristics of servitization manufacturing enterprises to thoroughly analyze the internal mechanisms of business model innovation.

As the deconstruction of business model elements progresses, the imperative for enterprises to undertake business model innovation has become increasingly evident. However, the drivers and efficacy of such innovation remain subjects to be explored. Studies have probed the catalysts and impacts of innovation from both internal and external environmental perspectives, as well as organizational management, including digital technology, leveraging employee strengths, entrepreneurial cognition, and institutional pressures [20,21,22,23]. Yet, the majority of these studies are grounded in specific contexts and do not fully expose the intrinsic mechanisms of business model innovation.

Business model innovation is increasingly recognized as a fluid and dynamic process that restructures multiple elements of a firm’s value structure. This understanding has gained clarity in recent studies. Drawing on existing theories and structural elements, researchers have further investigated the mechanisms and evolutionary patterns of innovation with the goal of delineating clear innovation pathways for various enterprises and bolstering their practical application capabilities. As Xu Qiang et al. have noted, a deeper comprehension of the business model innovation process can assist companies in balancing the effectiveness and efficiency of business operations, more adeptly managing innovation activities [12].

2.3. Resource Orchestration Theory

The theory of resource orchestration originates from the resource management model [24] and the asset orchestration model [25]. Both models focus on the actions of managers that concentrate on resources, emphasizing the coordination among various processes of resource management and complementing each other. The asset orchestration model addresses the need for innovative characteristics in resource actions, the alignment of actions with business models, and the corresponding organizational structure design to support the implementation of actions, which fills the gap in the resource management model in this regard. The resource management model, on the other hand, includes the dimension of bundling resources to form capabilities, which complements the deficiency of the asset orchestration model in this aspect (as shown in Figure 1). Resource orchestration consists of building a portfolio of resources, bundling resources to form capabilities, and utilizing capabilities to create value [7,10]. The processes covered by the resource orchestration model, the coordination between processes, and the dynamic matching of orchestration processes with contexts constitute the core of the theory of resource orchestration [26].

Compared with the traditional view of the resource base, the theory of resource orchestration shows significant developmental characteristics. First, it emphasizes the synergy between resource subjects and dimensions; i.e., orchestration processes need to match each other. Second, it highlights the variability of resource management; i.e., orchestration actions need to be adapted to the context. Lastly, it pays attention to the dynamics of resource management; i.e., resource orchestration is a continuous process. By constructing resource combinations, bundling resources to form capabilities, and utilizing capabilities to create value, resource orchestration theory reveals the whole process from resources to sustained competitive advantage, and it deeply analyzes the roles of resources and capabilities in realizing competitive advantage [27].

Given the unique ability of resource orchestration theory in parsing the relationship between resource utilization and firm value creation, related studies have gradually increased. Carnes et al. explored how managers can coordinate resource portfolio and innovation development according to the firm’s life cycle. Li et al. mined the intrinsic mechanism of sustainable supply chain governance based on the global supply chain of multinational firms [28]. Feng et al. discussed the impact of resource orchestration behavior on the value of digital platforms and discussed the role of resource orchestration behavior on value creation [29]. Wang et al. explored the growth mechanism of synergistic value creation and resource matching in science and technology-intensive enterprises from the perspective of enterprise growth and value creation [30]. These studies not only enrich the application field of resource orchestration theory but also provide valuable practical guidance for enterprises.

Overall, resource orchestration theory mainly explores how enterprises conduct strategic behaviors with resources at the core. This process covers all stages from resource identification and selection to the final formation of key capabilities and value creation, and it is closely related to business model innovation. Business model innovation often stems from an enterprise’s continuous acquisition and renewal of resources, as well as the cultivation and development of new capabilities, which together provide support for business model innovation. Under the guidance of corporate strategy, building resource portfolios, developing capabilities, and effectively utilizing resources are the keys to the continuous innovation and evolution of business models. This process involves the continuous updating and optimization of the various components of the business model. Ultimately, the establishment of a dynamic resource-matching mechanism that is compatible with corporate strategy and the external environment is the core objective of realizing effective resource orchestration.

3. Research Design

3.1. Research Methodology

This research, through the lens of resource orchestration, investigates the process by which companies transition to servitization and innovate their business models at every stage, starting from the exploratory phase to the achievement of a mature and polished state. Using an exploratory longitudinal single case study approach, this paper seeks to answer key questions: “What drives companies to adopt servitization?”, “How is innovation in business models accomplished throughout servitization?”, and “How do companies leverage resource orchestration to foster innovation in their business models?”. The research considers the company as a cohesive system, analyzing its orchestration of resources throughout the transformation process to ensure a thorough and methodical investigation. Moreover, the case study approach is well suited for dissecting the company’s progression in alignment with servitization strategies, clarifying the underlying rationale behind the temporal evolution of its organizational framework.

3.2. Case Introduction

3.2.1. Case Selection

This paper presents a case study of Sany Heavy Industry Co., Ltd., Changsha, China., which is a prominent entity in China’s manufacturing sector and a benchmark for the advanced level of China’s manufacturing industry in the global competitive landscape. The company’s extensive expertise in engineering machinery positions Sany Heavy Industry as a paradigmatic subject for the investigation of servitization transformation, showcasing significant industry representativeness. Its leadership role in the engineering machinery sector provides a valuable perspective for analyzing broader trends and challenges within the industry.

Sany Heavy Industry’s case is distinguished by the transparency of data available as a publicly listed company, enabling an in-depth analysis of its servitization transformation strategy and execution. The company’s long-term strategic initiatives reflect a sustained and evolving approach to business model innovation, offering a rich context for examining the progression and outcomes of transformation over time. Additionally, Sany Heavy Industry’s adaptability to policy changes and market environments demonstrates its strategic agility, which is crucial for understanding how enterprises can navigate a dynamic global landscape while sustaining a competitive advantage [31]. The company’s commitment to sustainable development is aligned with global trends, emphasizing the integration of sustainability into business model innovation and service offerings, which underscores the importance of considering long-term viability and societal impact in the context of servitization transformation. The distinct stages of Sany Heavy Industry’s servitization transformation, from initial exploration to deepening development and ultimately to value enhancement, are marked by a well-defined strategy of resource orchestration and business model innovation. The strategic allocation of resources and establishment of core competencies have been pivotal for the smooth progression of servitization transformation and business model innovation, which is consistent with the theoretical framework that supports this study.

3.2.2. The Course of Servitization Transformation of the Case Enterprise

From 2004 to 2011, China’s construction machinery industry was in a period of prosperity. In 2008, to mitigate the impact of the global financial crisis, China introduced a “four trillion yuan” economic stimulus policy aimed at ensuring the continuous investment in fixed assets. Under the stimulus of this policy, infrastructure investment accelerated, which in turn spurred the rapid development of the construction machinery industry [32]. At this time, Sany Heavy Industry laid the foundation for its business process standardization by building an information platform, taking the first step toward informatization and service orientation. In 2004, Sany initiated its digital transformation with the launch of an OA system, streamlining operations and enhancing workflow efficiency. The subsequent establishment of the ECC (Enterprise Control Center) in 2007 enabled a proactive approach to equipment failure management, ensuring the rapid deployment of resources to mitigate customer losses. The decade’s first decade also saw the construction of the 6S service center in 2010, offering an integrated suite of services including vehicle sales, spare parts, after-sales service, and customer feedback mechanisms, significantly enhancing customer convenience. The same year, the establishment of Sany Automobile Finance Co., Ltd., Changsha, China provided financial solutions for both end-customers and dealers, underpinning the growth of the business through strategic financial support.

The construction machinery industry, significantly influenced by infrastructure investment and the macroeconomic environment, exhibits pronounced cyclical traits, leading to substantial fluctuations in market demand for enterprises. During the period from 2011 to 2016, the industry encountered a severe downturn, severely impacting Sany’s performance and financial metrics, culminating in losses. The industry’s downturn intensified competition, shifting the market dynamics from a seller’s to a buyer’s market. Traditional production-driven approaches and cost reduction strategies became ineffective under the new market conditions, compelling enterprises to seek new avenues for growth and development models. Recognizing the imperative to maintain a competitive edge amidst the industry’s cyclical fluctuations, Sany concluded that it must transcend the conventional development paradigm and pivot toward a servitization transformation to secure competitive advantages. Consequently, Sany officially embarked on the path of servitization transformation. Further solidifying its commitment to innovation, Sany established Factory 18 in 2011, which is an advanced intelligent manufacturing workshop that marked a pivotal shift from manual operations to a sophisticated regime of automation and intelligent machinery. The Information Process Service Department was established in 2013, and process reforms were initiated in 2014, including the formation of the Process Reform Committee. A strategic partnership with IBM was forged to streamline and optimize business processes, integrating advanced technologies into the company’s operations. The development of a new ECC system in 2014, featuring a call center, customer portal, customer service management system, and intelligent equipment management system, reinforced the company’s service capabilities. By 2015, the company had expanded its reach through the creation of an Internet marketing platform, O2O platform, and CRM system, demonstrating a cautious yet strategic approach to the industrial Internet business in times of industry volatility. Through the orchestration of resources at this stage, enterprises are enabled to adapt flexibly to market and environmental changes, which is crucial for addressing the uncertainties of the global economy and environment and for achieving sustainable economic development.

After the stabilization of industry dynamics, Sany strategically ventured into financial services, deepening its service offerings. In 2016, the establishment of “JiuLong Property and Casualty Insurance” and the incubation of Shugen Internet marked significant milestones in expanding financial and digital capabilities. The launch of the Sany Finance and Leasing Company and the introduction of expert remote diagnosis and equipment failure prediction services further underscored the company’s dedication to technological advancement. The “Yiwei Xun” mobile client and the Root Cloud Platform in 2017, aimed at creating an industrial Internet ecosystem, were testament to the company’s commitment to leveraging technological advantages for comprehensive empowerment in R&D and intelligent production. The third stage of service transformation saw the creation of a customer-centric service platform, integrating digital and intelligent technologies to innovate service models and expand the value chain. The release of the “Sany Customer Cloud Platform” in 2018, the acquisition of Sany Financial in 2019, and the establishment of the industry’s first intelligent call center with Tencent in 2020 were significant steps in this direction. The launch of the “Industrial AR Remote Assistance System” and the “Sany SCRM1.0” platform, along with the “Starbucks System” in 2022, have not only improved service efficiency and customer experience but also fortified Sany Heavy Industry’s competitive strength in intelligent manufacturing and financial services.

3.3. Data Collection

This study mainly adopts secondary data as the main acquisition method of Sany Heavy Industries’ data. The reason for this is that Sany Heavy Industry has strong Internet attributes and is able to obtain a large amount of information about Sany Heavy Industry’s posture, mode and transformation and other topics through the Internet. Sany Heavy Industry is a listed company, and its financial reports, annual reports, press releases and other public information provide rich data support for the study with detailed intrinsic data and a high degree of compatibility between the content of the relevant information and the theme of this study.

3.4. Data Analysis

Sany Heavy Industries’ servitization transformation and development trajectory has been meticulously segmented into three distinct phases through the systematic collation of secondary data with each phase demarcated by temporal developmental milestones. This scholarly work employs Charmaz’s data-coding principles, integrating an embryonic theoretical framework to facilitate multi-level coding for data analysis and classification. The paper delves into the disassembly of Sany Heavy Industry’s business model innovation form during its servitization transformation, which is viewed through the lens of resource orchestration theory. Initially, the content practices are distilled based on the tenets of resource orchestration theory with analogous data points categorized under first-order coding. Subsequently, these first-order codes are subjected to theoretical generalization, yielding thematic constructs that evolve into second-order coding themes, such as resource structuring and novelty extension. Ultimately, the second-order coding themes, which share commonalities, are further refined and consolidated to establish the final third-order coding aggregation categories. Consequently, a hierarchical data structure is constructed, comprising three levels of coding: first-order codes, second-order thematic codes, and third-order integrative syntheses. This structured approach ensures a comprehensive and coherent analysis of the data, adhering to the rigorous academic standards required for scholarly discourse.

4. Case Analysis and Discovery

According to the case data, the servitization transformation of the case enterprise has been through three stages: the exploration stage of servitization transformation, the deepening stage of servitization transformation, and the value enhancement stage of servitization transformation. Focusing on the core issue of “how to achieve business model innovation in servitization transformation enterprises”, this paper analyzes the course of servitization transformation in these three stages respectively.

4.1. Exploration Stage of Servitization Transformation

During the incipient phase of its servitization transformation, Sany Heavy Industry established strategic objectives designed to address the deficiencies in informatization capabilities and to elevate managerial awareness of the significance of adopting informatization. Faced with intensifying market competition and the diversification of customer demands, Sany Heavy Industry recognized the necessity to shift from a traditional focus on product manufacturing to an integrated approach that encompasses both services and manufacturing. To facilitate this transformation, the company initiated a strategic series of resource orchestration initiatives.

At this stage, the resource orchestration efforts of Sany Heavy Industry can be categorized into three distinct levels: acquisition, stabilization, and mobilization. Initially, in the domain of resource structuring, the company prioritized the acquisition of informatization resources, actively pursuing external collaborations to address the internal shortfall in service capabilities and establishing strategic alliances with various technical service providers to map out a new path for servitization transformation. Subsequently, in the realm of resource bundling, the emphasis was on stability. Sany Heavy Industry consolidated management consensus on servitization transformation through internal training and cultural development, progressively constructing the prototype of a servitization enterprise. The establishment of the 6S service center, among other initiatives, played a pivotal role in providing customers with a comprehensive suite of services. Ultimately, in terms of resource utilization, the key expression was mobilization. By developing information technology systems and instituting process reforms, Sany Heavy Industry streamlined its internal operational processes and enhanced service efficiency. In parallel, through close collaboration with external partners, the company consistently absorbed and integrated advanced service management philosophies and technologies.

These orchestrated resource activities not only enhanced service efficiency but also laid a solid foundation for the advancement of servitization transformation, marking the initial realization of a novel business model innovation. This phase represents a significant leap for Sany Heavy Industry in its progression toward a service orientation, reinforcing the enterprise’s sustainable development and bolstering its market competitiveness.

Table 1. Typical evidence of Sany’s servitization transformation exploration stage.

Polymeric Genus	Second-Order Code	First-Order Code	Examples of Typical Evidence
Resource orchestration	Resource structuring: acquisition	Information system construction	OA system and ECC system implementation, improve the efficiency of internal management and response speed
		Construction of service network	Establish a 6S service center to provide integrated services such as vehicle sales, spare parts and after-sales service
	Resource bundling: stabilization	Talent training and cultural construction	To carry out staff training and strengthen the sense of informatization and process
		Financial services integration	Sany Automotive Finance Co., Ltd. was established to provide financing solutions
		Integrated service capability	Integrate equipment, accessories, and service resources to form an overall solution
	Resource utilization: mobilization	Service process optimization	Through the information process service department and process reform, improve service efficiency
Business model innovation	Efficiency extension	Service efficiency improvement	The turnover rate of accessories increased by 10%, 98% of the service business was completed online, and the time was within 24 h.

presents the quintessential evidence of Sany Heavy Industry’s exploratory phase in servitization transformation.

In the exploratory stage of servitization transformation, Sany Heavy Industries carried out a preliminary attempt of servitization transformation, and its resources are organized as shown in Figure 2.

(1) Resource structuring (acquisition). During the initial phase of Sany’s servitization transformation, resource structuring was primarily characterized by the proactive acquisition of key resources. The management at Sany demonstrated a strong commitment to the transformation, actively securing the vertical resources necessary for the servitization transformation, such as information technology resources and process management resources. Considering cost and technological issues, Sany vigorously pursued cooperation with external partners, establishing strategic partnerships with multiple technology service providers to jointly explore the specific application of information technology in Sany’s production lines. Digital development can improve the enterprise service level [33]. Sany Heavy Industry comprehensively utilized emerging information technology, such as cloud computing, big data analysis, etc., actively prepared to build an enterprise-level big data management system and cloud service platform, and optimized the enterprise service capability for products, manufacturing processes, and business development in new fields through digital technology.

(2) Resource bundling (stabilization). For the acquired basic resources, Sany carried out resource stabilization to form the basic service capability. Through the cooperation with service providers, the enterprise in the process, its own service capability has been greatly improved, and it accumulated vital force for the servitization transformation. Through the continuous penetration of service technology, Sany Heavy Industry carried out stable utilized learning, improved the service capability of the enterprise, and completed the initial construction of servitization transformation. At the same time, the manager’s ability to identify market opportunities was also transformed because of the advancement of servitization transformation. Sany Heavy Industries is trying to end the mode of relying solely on product sales and gradually stepping into the era of service-centered innovation around customer needs.

(3) Resource utilization (mobilization) At this stage, Sany Heavy Industry put resources into the building of a service network to form a digital and intelligent form of servitization enterprise to cope with the changes in the industry environment. Through the establishment of an intelligent manufacturing workshop, Sany Heavy Industry accelerated the process of servitization transformation and enhanced their core competitiveness. Through the act of resource orchestration in the early stage of servitization transformation, Sany Heavy Industry completed the initial construction for servitization transformation. The cooperation with external partners makes Sany Heavy Industry steady at the beginning of transformation, and through continuous learning and technological innovation, the whole enterprise achieved servitization transformation. The establishment of an intelligent workshop not only changed the traditional manufacturing method but also had a far-reaching impact in many fields such as production, sales and service, which strengthened the enterprise’s ability in intelligent manufacturing and product research and development and laid a solid foundation for the servitization transformation.

(4) Business model innovation. In the first stage of Sany Heavy Industry’s servitization transformation, business model innovation was mainly reflected in the extension of efficiency and the core of this stage lay in the reform of information technology integration of internal management and service processes, which significantly improved the operational efficiency of the enterprise. By introducing advanced information technology, such as an online office system and enterprise control center, Sany Heavy Industry optimized internal resource allocation and decision-making processes and shortened the time to respond to market and customer needs. Meanwhile, through the establishment of the 6S Service Center and Sany Automobile Finance Co., Ltd., Changsha, China. the enterprise not only improved the response speed and quality of service but also provided customers with more convenient financial solutions, which enhanced customer satisfaction and loyalty. This series of efficiency improvement measures not only strengthened Sany’s market competitiveness but also laid a solid foundation for the subsequent servitization transformation.

4.2. Deepening Stage of Servitization Transformation

During the subsequent phase of Sany Heavy Industry’s servitization transformation, the company leveraged the digital infrastructure previously established to augment its capabilities. Confronted with the challenges of a new developmental epoch, Sany Heavy Industry strategically reconfigured its resources to systematically and effectively tackle the emerging systemic and technical challenges. To address the intrinsic limitations in service technology, personnel proficiency, and platform functionality, and to ensure the enterprise’s stable progression, a comprehensive suite of transformative measures was implemented.

Sany Heavy Industry fortified its core team for servitization transformation through enhanced training and recruitment initiatives, amassing a critical mass of skilled human resources. Concurrently, the ongoing development of managerial competencies has solidified the underpinnings of the enterprise’s transformation, facilitating the successful aggregation of structured resources. By executing an enriched resource bundling strategy, Sany Heavy Industry capitalized on its technical expertise to foster the advancement of digital service tools and staff training. This initiative has seamlessly integrated the corporate culture and ethos with the servitization transformation. The synthesis of cross-departmental resource competencies has achieved a profound amalgamation of the customer service platform with diverse business sectors, substantially enhancing service efficiency. In particular, Sany Heavy Industry harnessed the data-driven services of its root cloud platform to achieve equipment management and fault prediction, exemplifying the structured utilization of accumulated resources. Moreover, the company has enriched the customer service experience through innovative branding and channel strategies, such as the introduction of the “EWS” mobile client. The innovation in service products and the synchronization of service with technological advancements, including remote diagnostics and predictive maintenance services, have broadened the spectrum of enterprise services and elevated service efficiency. Furthermore, Sany Heavy Industry has introduced personalized, low-risk equipment insurance services, leveraging customer equipment data. This reflects not only a personalized service innovation but also pioneers a novel business model. These strategic actions have propelled the enterprise’s service model innovation and conferred new growth vectors and competitive advantages, establishing a robust foundation for Sany’s ongoing servitization transformation and business model evolution.

As depicted in

Table 2. Typical evidence of Sany Heavy Industry’s deepening stage of servitization transformation.

Polymeric Genus	Second-Order Code	First-Order Code	Examples of Typical Evidence
Resource orchestration	Resource structuring: accumulation	Data-driven services	The root cloud platform implements device management and fault prediction services
		Service brand building	Form a service brand, enhance the competitiveness of the service market
	Resource bundling: enrichment	Service channel innovation	Launch the “eVision” mobile client to provide a convenient customer service experience
		Service product development	Develop service packages and provide customized service products
	Resource utilization: coordination	Service and technology coordination	Coordinate technical resources to support services through remote diagnostics and device prediction services
Business model innovation	Novelty development	Personalized service	Using customer equipment data to provide personalized, low-risk equipment insurance services

, these exemplars of evidence encapsulate the pivotal initiatives and accomplishments of Sany Heavy Industry in the intensification phase of its servitization transformation. The academic rigor is maintained throughout with a consistent use of the present perfect tense to denote actions with ongoing relevance or recent completion.

Deepening stage of servitization transformation: Sany Heavy Industry carries out large-scale enterprise servitization transformation actions and generates resource orchestration behaviors. Its resource orchestration is shown in Figure 3.

(1) Resource structuring (accumulation). Sany Heavy Industry focuses on the accumulation of resources in the second stage of servitization transformation. The enterprise has actively set up specialized technical teams responsible for service innovation and technology development to support the needs of servitization transformation. These teams continue to improve their service capability and technology level through trial-and-error learning and experience accumulation. In addition, Sany Heavy Industry has established a customer service management system and an intelligent equipment management system to unify the data resources for customer service and equipment monitoring, providing a platform to support the efficient operation of services. The enterprise also attaches importance to the transformation awareness and technical training of internal staff and improves their service awareness and professional skills through regular training and learning.

(2) Resource bundling (enrichment). On the basis of resource structuring, Sany Heavy Industry further carries out enrichment-type resource bundling. The enterprise has formed a strong service capability by integrating internal resources, such as technology, talents, and service processes. At the same time, Sany Heavy Industry has also established cooperative relationships with external partners, introduced advanced service concepts and technologies, and enriched the enterprise’s service resources. Through the integration and bundling of these resources, Sany Heavy Industry is able to provide more comprehensive and higher-quality services to meet the diversified needs of customers.

(3) Resource utilization (coordination). On the basis of resource bundling, Sany Heavy Industry demonstrates a high degree of coordination in resource utilization in the second stage. By establishing a cross-departmental collaboration mechanism, the enterprise realizes close cooperation between business departments and service departments, ensuring consistency and efficiency of services. Sany Heavy Industry also utilizes digital technologies, such as CRM systems and industrial internet platforms, to automate and intellectualize service processes and improve service response speed and quality. In addition, the company has realized efficient cooperation between humans and machines through service collaboration capabilities, improving the overall efficiency of service delivery.

(4) Business model innovation (novelty pioneering). Through a series of innovative actions, Sany Heavy Industry has successfully realized the development of business model novelty in the second stage of servitization transformation. By integrating cutting-edge technologies and innovative service products, the company has not only improved customer experience but also optimized internal operation processes. Sany Heavy Industry’s series of actions include the establishment of an intelligent call center, the launch of an industrial AR remote assistance system, and the development of integrated solutions, all of which have significantly improved service efficiency and customer satisfaction while reducing operational costs. These innovations have not only brought new sources of revenue to Sany but also enhanced its market competitiveness and customer loyalty, providing a solid foundation for the company’s long-term growth and industry leadership.

4.3. Value Enhancement Stage of Servitization Transformation

In the third and penultimate stage of Sany Heavy Industry’s servitization transformation, termed the value enhancement stage, the enterprise has meticulously constructed a robust framework for servitization transformation. This structure has been developed upon the foundational explorations and implementations characterized in the preceding stages. Sany Heavy Industry has achieved not only internal servitization transformation but has also extended its strategic purview across the entire industrial chain. The company has harnessed its accrued experience and resources from transformation to empower partners and service entities within the broader business ecosystem. In addressing the logistics and supply chain systems traditionally operated, Sany Heavy Industry has integrated an avant-garde digital service model to effect systematic modernization. The company has dedicated itself to the establishment of an efficient and transparent management system for logistics and supply chains. Furthermore, by instituting a digital twin pilot, Sany has augmented the visibility and governance over the entire product life cycle from the point of production to utilization. During this stage, Sany has fortified the interconnections between its internal networks and those external to it, fostering the digital metamorphosis of participants within the business ecosystem. This has, in turn, catalyzed the synergistic advancement of the entire industrial chain ecosystem. The business model innovation and the holistic enhancement of value at this stage have been actualized through the profound aggregation of resources coupled with proactive exploration and strategic allocation.

The initiatives undertaken in this stage have not only solidified Sany Heavy Industry’s vanguard status within its industry but have also established a bedrock for the enduring development of the servitization transformation ecosystem as a whole.

Table 3. Typical evidence of Sany Heavy Industry’s service-based transformation value enhancement stage.

Polymerization Genus	Second-Order Encoding	First-Order Coding	Examples of Typical Evidence
Resource Orchestration	Resource Structuring: Accumulation	Financial Services Improvement	Acquired Sany Financial to provide more comprehensive financial solutions.
		Intelligent Manufacturing Upgrade	Established the “Lighthouse Factory” to demonstrate leadership in intelligent manufacturing.
	Resource Bundling: Pioneering	Ecosystem Construction	Collaborated with Tencent to establish an intelligent call center and build a service ecosystem.
		Customer Service Platform	Released the Sany Customer Cloud Platform to integrate customer service and support.
	Resource Utilization: Deployment	Intelligent Service Deployment	Launched the “Industrial AR Remote Assistance System” to deploy intelligent technical support and services.
Business Model Innovation	Value Enhancement	Customer Value Enhancement	Utilized intelligent technology to improve service efficiency and customer satisfaction and reshape customer value.

delineates the quintessential evidence encapsulating the value enhancement stage of Sany’s servitization transformation journey. This passage has been refined to maintain a consistent academic tone and tense, eschewing colloquialisms and anthropomorphism in favor of formal, scientific exposition.

The value-enhancing phase of the servitization transformation is organized with the resources shown in Figure 4.

(1) Resource structuring (accumulation). Sany Heavy Industry has strengthened its core competence through continuous resource accumulation in the third stage of servitization transformation. By deepening technology research and development and talent training, the enterprise has accumulated rich technical resources and talent advantages, which provides a solid foundation for the servitization transformation. At the same time, Sany Heavy Industry has also formed a strong service capability by integrating internal resources, such as a customer service management system and intelligent equipment management system, laying a foundation for further service innovation and value creation.

(2) Resource bundling (pioneering). On the basis of resource accumulation, Sany Heavy Industry actively explores new service fields and markets, realizing the richness of resource bundling. By establishing strategic alliances with external partners, the enterprise has expanded its service network and enhanced the coverage and depth of its services. In addition, Sany Heavy Industry further consolidated its market position by exploring new service modes, such as remote service and maintenance based on industrial Internet, to provide customers with more comprehensive and efficient service solutions.

(3) Resource utilization (deployment) Sany Heavy Industry achieved the maximum utilization of resources and capabilities through reasonable resource deployment in the third stage. The enterprise optimized production processes and service delivery and improved operational efficiency through the construction of intelligent manufacturing and digital management platform. Meanwhile, Sany Heavy Industry also improved the response speed and quality of service through the application of innovative service tools such as industrial AR remote assistance system and an intelligent call center, providing customers with a more convenient and personalized service experience.

(4) Business model innovation (value enhancement). On the basis of resource structuring, bundling and utilization, Sany Heavy Industry has realized the innovation of business model and comprehensive value enhancement. Through servitization transformation, the enterprise not only improves service efficiency and customer satisfaction but also opens up new sources of income and profit growth. Sany Heavy Industry’s servitization transformation, through the provision of total solutions, equipment leasing, overhaul services and other diversified services, has realized the extension of the value chain and deepening of value creation, which has brought the enterprise a long-term competitive advantage and market leadership. Through the third stage of servitization transformation, Sany Heavy Industry has demonstrated its foresight and executive power in business model innovation, and it has successfully integrated the concept of servitization transformation into all levels of enterprise operation, realizing the overall enhancement of enterprise value.

5. Conclusions and Discussion

This paper conducts a single-case analysis with Sany Heavy Industry as the case company. From the perspective of resource orchestration, the paper explores how servitization transformation enterprises aiming for economic sustainability can achieve business model innovation. The findings of this study underscore the pivotal role of resource orchestration in the business model innovation process for economic sustainability within servitization transformation enterprises. Through a structured analysis of Sany Heavy Industry’s strategic progression across various stages of servitization transformation, this paper delineates a comprehensive framework illustrating the specific implementation steps of business model innovation within the enterprise. The systematic evolution of Sany Heavy Industry’s resource orchestration behaviors, from the initial exploratory phase through the deepening phase to the value enhancement stage, has been instrumental in enhancing service efficiency, customer experience, and competitive advantage. The dynamic evolution framework, as depicted in Figure 5, encapsulates the interplay between business model innovation and resource orchestration behavior, highlighting the strategic trajectory toward economic sustainability.

In the exploratory phase, Sany Heavy Industry’s adept integration of internal resources and the implementation of resource structuring strategies, such as the establishment of OA and ECC systems and the 6S service center, expedited service response times and elevated customer satisfaction. These initiatives exemplify the foundational steps in resource orchestration, laying the groundwork for subsequent stages of transformation. As the transformation progressed into the deepening phase, Sany Heavy Industry continued to enrich its service content and experience through the construction of industrial Internet platforms and the expansion into financial services. The bundling strategy fortified the enterprise’s capabilities in service provision, introducing remote diagnostics and equipment failure prediction services, optimizing resource utilization through the coordination of service and technology. In the value enhancement stage, the accumulation of pivotal technological and market resources through initiatives such as the customer cloud platform and the establishment of a smart call center marked a significant advancement. The venture into new service territories with industrial AR remote assistance systems and robotics applications culminated in service mode innovation, propelling the upgrading of the entire industrial chain and augmenting service value.

The case of Sany Heavy Industry illustrates the imperative of resource orchestration and business model innovation for adapting to market shifts and achieving sustainable development. The continuous refinement of resource structuring, bundling, and utilization has enabled Sany Heavy Industry to transition seamlessly from a product manufacturer to a servitization manufacturing entity, fostering new avenues of customer and enterprise value. Furthermore, the significance of digital technology in servitization transformation cannot be overstated. Information technology applications have elevated service efficiency and opened up possibilities for service model innovation and customer experience enhancement. Sany’s adoption of digital solutions, including industrial Internet, AR technology, and big data analytics, has led to the customization and automation of services, strengthening the company’s competitive edge in the market. Looking ahead, Sany Heavy Industry is poised to further explore the depths and breadths of servitization transformation, aspiring to achieve higher echelons of value creation through ongoing resource innovation and business model evolution. Concurrently, the enterprise is positioned to monitor shifts in industry trends and customer demands, adjusting and refining its servitization strategy to sustain long-term competitive superiority.

Compared to Xing’s study on the value creation path of OPPEIN’s digital servitization transformation from the perspective of resource orchestration, the three-stage resource orchestration behaviors of OPPEIN’s digital servitization transition from “acquisition − enrichment − mobilization” to “acquisition + accumulation − enrichment + pioneering − mobilization + coordination”, and then to “acquisition + accumulation − pioneering − deployment” [3]. There are certain differences in the resource orchestration behaviors of Sany Heavy Industry. The reasons for these differences may include the following points. First, the research perspectives differ. Xing Yuchen’s study focuses on the value creation path of OPPEIN, while this paper concentrates on the path of business model innovation. Second, the two companies belong to different industries. OPPEIN is in the furniture manufacturing industry, and Sany Heavy Industry is in the construction machinery industry. These two industries exhibit significant differences in market dynamics, customer demands, product life cycles, and technical requirements, which influence the strategies and implementation of resource orchestration. Third, the strategic objectives of the two companies differ, leading to different emphases on resource management and utilization. Lastly, the organizational structures and cultures of the two companies differ. These differences highlight the diversity and complexity of resource orchestration behaviors across different enterprises and industry contexts, and they also imply the specific corporate environment and strategic needs that must be considered when orchestrating resources.

This study contributes to the academic discourse by providing a structured analysis of the mechanisms through which resource orchestration facilitates business model innovation in servitization transformation enterprises. The insights derived from Sany Heavy Industry’s case offer a replicable framework for other enterprises embarking on similar transformation journeys, emphasizing the importance of a strategic, phased approach to achieving economic sustainability.

6. Theoretical Contributions, Implications and Prospects

6.1. Theoretical Contributions

(1) This study enriches the theoretical model of the effective use of resource orchestration tools by enterprises oriented to servitization transformation to achieve enterprise business model innovation. It explains how to utilize resource orchestration, bundle resources to form core competitive capabilities, and carry out certain integration and coordination of capabilities to innovate business models. And from different development periods through the perspective of resource orchestration for the case study, the enterprise managers set the positioning of the servitization transformation strategy. Managers expect business model innovation teams to explain how to promote business model innovation through different stages of resource preparation. This accomplishes the coordination and integration of the theory of resource organization and the theory of enterprise business model innovation.

(2) This study expands the analytical field of resource orchestration theory. The resource orchestration behaviors of different strategically oriented enterprises are also different. To form a brand new strategically oriented enterprise, it is necessary to take into account the limitations and pressures caused by the mismatch between the resources and capabilities of the enterprise in the new era of economic change and to plan the resources and capabilities for the challenges and crises faced by the enterprise in the process of continuous resource integration and capability formation of the enterprise. This paper mainly analyzes the structured use and bundling of key resources and in-depth utilization of resources in the process of servitization transformation of enterprises so that resources can reasonably form the core competence and value resources that are effective for the development and progress of enterprises, and it refines the process of coordinating the formation of enterprise resources and competence into the core power of enterprise value creation. At the same time, it provides reference for the transformation process of servitization transformation enterprises.

6.2. Practical Insights

In the realm of servitization transformation, enterprises must employ suitable methods of resource orchestration to seamlessly integrate their transformation efforts with the available resources within their environmental context. It is essential to effectively interweave the three facets of resource structuring, bundling, and utilization to create synergistic effects. This integration ultimately fosters business model innovation, evolving from fragmented resource assembly, rational capability bundling, and strategic coordination and deployment. Enterprises should adjust their strategies according to their specific circumstances and select their focal points based on the “resources + capabilities” matrix they have established.

Concurrently, business model innovation predicated on servitization transformation must consider novelty, efficiency, and value. This approach enables enterprises to capitalize on market opportunities with innovative offerings, enhance their competitive edge through operational efficiency, and solidify customer loyalty by delivering value, securing a vanguard position within the industry. By aligning resource orchestration with business model innovation, enterprises can navigate the complexities of servitization transformation and achieve sustainable growth and market competitiveness.

6.3. Research Limitations and Future Prospects

The content of this paper is anchored in the study of enterprises that are predominantly undergoing servitization transformation, focusing on the resource orchestration behaviors within such enterprises. It is important to note that the analysis is centered on the behavior of a single transformation enterprise, which inherently presents certain limitations. Furthermore, the paper primarily examines the resource orchestration behavior from the macro-perspective of the enterprise as a whole rather than delving into the interplay of resource orchestration at various internal levels within the enterprise.

The selection of case study subjects should be progressively expanded to address the limitations in external validity and applicability that are often associated with single-case studies. The current research has predominantly focused on large manufacturing enterprises, which leaves a gap in understanding how small and medium-sized enterprises, as well as those in other industries, manage the orchestration of their resources and capabilities. There is a recognized need for research that encompasses a variety of resources and capabilities, including technological resources and manufacturing capabilities.

For future research endeavors, the scope of investigation will be broadened in two key dimensions. Firstly, the study will extend within the same industry to include a wider range of cases. Secondly, comparative studies will be conducted across different industries, juxtaposing the resource orchestration behaviors of enterprises in various sectors with those in manufacturing. This approach aims to further enrich and refine the academic understanding of resource orchestration in the context of servitization transformation.