Escaping the "tortoise shell paradox": digitalization and servitization in the green building construction industry - the case of Marlegno

The case traces the history of Marlegno S.r.l. (hereafter "Marlegno"), a small and medium-sized family firm based in Bergamo owned by the Marchetti family. Marlegno started its business as B2B subcontractor for local construction companies located in the North of Italy, producing wooden coverings and slabs. To survive the 2008 financial crisis, the company shifted to a B2C target selling customized timber houses, buildings, and structures directly to final customers. A few years later, however, the strategy adopted by Marlegno turned out to be inadequate for long-term growth, causing a business stalemate. During 2015, the company seemed to be stuck in its comfort zone, unable to balance the benefits of the B2C business model and the opportunities that could lead to a new growth path. Emerging technological trends (e.g., artificial intelligence) seemed not easily applicable within a traditional industry such as building construction, historically characterized by a low digitalization level. The Marchetti family questioned which entrepreneurial opportunity could be sought to re-launch their business. The focus was on the role of digitalization on new products design and offering and on the role of external collaborative networks of partners to pursue the identified entrepreneurial initiatives effectively. This case asks students to analyze the advantages and disadvantages of innovation mechanisms that benefit from digital entrepreneurship regarding their financial consequences, organizational impact, and strategic approach to customer engagement