Capabilities to Manage Digital Industry 4.0 Innovations in Interorganizational Value Chains

Manufacturing organizations are increasingly investing in digital Industry 4.0 (I4.0) innovations to enhance the performance of their value chains. However, the full realization of I4.0's potential hinges on its holistic integration into the horizontal value chain at the interorganizational level, where collaboration across organizations collectively creates value. The literature has provided few empirical insights into interorganizational capabilities, leading us to hypothesize that the era of digitalization demands fresh perspectives on interorganizational capabilities and updates of existing capability frameworks. To fill this gap, a Delphi study with international experts was conducted. After rigorous empirical validation, the paper introduces the digital interorganizational value chain (DIOVC) capability framework, which covers detailed subcapabilities and descriptions. Importantly, it shed light on the distinctions between intra- and interorganizational perspectives on process innovation. The DIOVC capability framework serves as a bridge between economic perspective theories, intertwining seamlessly with relational perspective theory. This synthesis underscores the imperative need to harness a multitude of resources and capabilities across organizations to facilitate the development of robust business relationships. The study improves the theoretical understanding by harmonizing these diverse perspectives, offering a more holistic lens through which to view interorganizational value chains. Future research can build upon these findings to develop a maturity model and best practices. These insights can serve as a guide for manufacturing organizations, enabling them to systematically enhance their interorganizational capabilities and align effectively with their partners within the value chain.