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Product services for a resource-efficient and circular economy - A review
Abstract
Since the 1990s, Product Service Systems (PSS) have been heralded as one of the most effective instruments for moving society towards a resource-efficient, circular economy and creating a much-needed ‘resource revolution’. This paper reviews the literature on PSS in the last decade and compares the findings with those from an earlier review in this journal in 2006. Close to 300 relevant papers were identified, over 140 of which have been referenced in this review. Research in the field of PSS has become more prolific, with the output of refereed papers quadrupling since 2000, while on average scientific output has only doubled. PSS has also become embedded in a wider range of science fields (such as manufacturing, ICT, business management, and design) and geographical regions (Asia now produces more papers than Europe). The literature of the last seven years has refined insights with regard to the design of PSS, as well as their business and environmental benefits, and confirmed the definitions and PSS concepts already available in 2006. A major contribution of the recent literature is research into how firms have implemented PSS in their organization and what the key success factors and issues that require special attention are (such as a focus on product availability for clients; an emphasis on diversity in terms of services provided rather than the range of products; and the need for staff to possess both knowledge of the product and relationship management skills). The reasons why PSS have nonetheless still not been widely implemented, particularly in the B2C context, seem to have already been explained fairly well in the literature available in 2006. For consumers, having control over things, artifacts, and life itself is one of the most valued attributes. PSS are often less accessible, or have less intangible value, than the competing product, in part because PSS usually do not allow consumers as much behavioral freedom or even leave them with the impression that the PSS provider could prescribe how they should behave.
... "Difficulties of gaining customer acceptance of service-oriented solutions are among the most often cited barriers" (Mont 2002, 94) for businesses. So far, consumer acceptance as a reason for poor product-service-system (PSS) implementation has not been fully analysed and understood (Tukker 2015). This bachelor thesis thus intends to examine in closer detail which barriers that prevent customers to accept circular business models (CBMs) might be perceived by practitioners. ...
... Also, it must be ensured that no transfer of environmental impact takes place alongside the value chain, that costs for the required infrastructure are accounted and that rebound effects are monitored (Ghisellini et al. 2016;Korhonen et al. 2018). For reusing and renting, the studied activities in this thesis, Tukker (2015) found that they might have repercussions as well due to less careful handling of non-owned products by consumers. However, in general, they pose an opportunity to hold resources at their highest level of utility, if designed and controlled well. ...
... Here, it will be mainly focused on the ones for user-oriented business models, not the production-side of items. Although product innovations and process innovations require investments they can lead to system optimizations and the exploration of market niches (Tukker 2015). To convince customers of innovations is time and cost intensive, but service-systems can gain customers loyalty and bind them, which results in long term advantages, especially when long-term contracts are involved (Lewandowski 2016). ...
This thesis has explored how possible barriers of customer acceptance for circular business models could be met by companies with a user-oriented value proposition delivering non-con-sumables to the private consumer market in Germany. To explore the practitioners' perspective on how to tackle specific customer acceptance barriers a case-study, analysing Otto Now, an in-house start-up of the Otto GmbH & Co KG e-commerce retailer, has been conducted. Otto Now rents fitness equipment, electronical devices and household appliances. A semi-structured interview guideline has been established upon a theoretical framework, which was derived from insights from previous empirical studies on consumer resistance towards circular business models. As form of analysis the content structuring qualitative content analysis has been chosen. To evaluate the data a pattern matching logic against theoretically established propositions how to approach the customer barriers and rival theories has been performed. One finding of the exploration is that customer acceptance barriers appear not to be as strong as expected and predicted by other researchers. Today's demand possibly outruns the current supply capabilities of pioneers offering access-based consumption. A change towards a flexible lifestyle and a mentality appreciating service-quality over ownership and increasing familiarity with the business model could be a trend observed by practitioners. It could be exploited and even fuelled by companies through offering and testing new products within their user-oriented model. Approaches how companies could overcome customer acceptance barriers towards user-oriented business models therefore might be less distinct than expected. Foremost, it appears that the customer acceptance barriers are avoided and an adaptation to suitable and willing customers is taking place, like for example using products that do not evoke aversion in customers and are easy to clean. Nevertheless, also some proactive actions were identified. Using a trusted brand name, addressing individual use-scenarios and pointing out the personal benefits for example could be effective approaches to lower customer acceptance barriers.
... Circular economy involves design strategies combined with business model strategies for slowing, closing, and narrowing resource loops [5]. The concept of product-service systems (PSS) has emerged as a group of business models with the goals of minimising environmental impacts and contributing to circularity [6,7]. Tukker [8] distinguishes between three categories of PSS: product-oriented (offering services alongside selling products to prolong their lifetime and close resource loops), use-oriented (providing access to products through leasing, renting, sharing, or pooling), and result-oriented (offering a functional result or specific output, including pay-per-use models). ...
... In this paper, we use the term access-based consumption (ABC) when referring to the two latter PSS categories. Although ABC could potentially meet the same needs with fewer resources, it has been highlighted that less careful use of non-owned products might lead to shorter product lifespans [7]. Thus, the environmental benefits of ABC are not indisputable, and many barriers have so far limited its diffusion [7]. ...
... Although ABC could potentially meet the same needs with fewer resources, it has been highlighted that less careful use of non-owned products might lead to shorter product lifespans [7]. Thus, the environmental benefits of ABC are not indisputable, and many barriers have so far limited its diffusion [7]. Although barriers to the acceptance and adoption of ABC have been researched extensively eg. ...
The urgent need to transition to a circular economy is widely acknowledged, but little attention has been given to how circular consumption affects and is shaped by people’s needs, aspirations, and everyday practices. This study explores user perspectives on circular value propositions for kitchen furniture and appliances through scenario workshops with 39 Swedish participants. The findings reveal that scenarios focusing on consumption of pre-used products were associated with economic and environmental motivations. The main barriers were contamination, quality and performance-related issues, and desire for new products. Scenarios focusing on access-based consumption were associated with motivations concerning flexibility, convenience, quality, and environmental reasons. The main barriers to these scenarios were financial concern, unfamiliarity with the concept and uncertainty about terms, desire to own, and practical feasibility. Furthermore, the findings highlight the importance of considering the additional efforts that are associated with circular consumption, the ability to meet users’ needs and expectations, and the actual potential for lowering environmental impacts. The relevance of the different scenarios seemed to depend strongly on life situation, financial conditions, and housing situation, with access-based consumption generally seen as a short-term solution. To achieve a circular economy for kitchens, taking a holistic approach to the development of kitchen designs and business models as part of future housing will be needed.
... /frsus. . waste generation, and environmental degradation (Kirchherr et al., 2017;Ghisellini et al., 2016;Tukker, 2015). This linear model, heavily reliant on finite resources, encourages a consumptionbased economy where products are used once and discarded, often leading to significant ecological damage. ...
... For example, waste heat recovery technologies, which capture, and reuse heat generated during industrial processes, can significantly reduce the energy consumption and carbon emissions of energy-intensive industries such as steel, cement, and chemical manufacturing (Morrison et al., 2019;Ghisellini et al., 2016;Gungor et al., 2011). Waste-to-energy technologies, which convert organic waste into usable energy, also represent a valuable tool in promoting circularity within the energy sector (Tukker, 2015;Morrison et al., 2019;Tukker, 2015). Through repurposed waste products into new forms of energy, these technologies minimize the need for external resources and contribute to waste reduction. ...
... For example, waste heat recovery technologies, which capture, and reuse heat generated during industrial processes, can significantly reduce the energy consumption and carbon emissions of energy-intensive industries such as steel, cement, and chemical manufacturing (Morrison et al., 2019;Ghisellini et al., 2016;Gungor et al., 2011). Waste-to-energy technologies, which convert organic waste into usable energy, also represent a valuable tool in promoting circularity within the energy sector (Tukker, 2015;Morrison et al., 2019;Tukker, 2015). Through repurposed waste products into new forms of energy, these technologies minimize the need for external resources and contribute to waste reduction. ...
Smart Enegy for a Circular Economy Transitions
... This study seeks to address this gap by focusing on a specific sub category of solar PV business models, where ownership resides not with property owner but is with third-party or community entities (Bankel and Mignon, 2022;Strupeit and Palm, 2016;Van Opstal and Smeets, 2022). These business models exhibit characteristics of Product-Service Systems (PSS) which are combinations of products and services to fulfil customer needs (Tukker, 2004(Tukker, , 2015. Such PV PSS business models are particularly valuable from a circular economy perspective, as they align financial incentives with system performance. ...
... Product-service-system (PSS) business models, in turn, can be considered a sub-category or archetype of circular business models because they are commonly understood as a means of realizing circular economy (Henriques et al., 2023;Tukker, 2015). A PSS is defined as an integrated combination of tangible products and intangible services that are jointly capable of fulfilling customer needs (Goedkoop et al., 1999;Tukker and Tischner, 2006). ...
... PSS are often heralded as circular business models with the potential to enhance circularity by moving beyond the traditional product-ascommodity model and offering comprehensive solutions that meet customer needs while delivering added value (Tukker, 2015). Yet, the extent of their contribution to circularity remains contested (Henriques et al., 2023;Moro et al., 2020). ...
The solar industry is experiencing rapid growth, driving fundamental changes in business models and value creation strategies. While research has examined "solar photovoltaics (PV) business models" as catalysts for transformation, it has primarily approached this topic from a technology diffusion and energy policy perspective. As a result, the focus has been on deployment models, providing insights into how, by whom, and where PV systems are installed, rather than exploring the underlying value logic. Consequently, an understanding of how solar companies are doing business remains underdeveloped. This study addresses this gap by examining a subcategory of solar PV business models in which ownership remains with a third-party or community entity rather than the property owner. Commonly referred to as product-service-systems (PSS), these models integrate products and services to fulfil customer needs. They are relevant as they align financial incentives with system performance, encouraging the use of high-quality PV products and maximizing system lifespan. Employing an exploratory sequential research approach, this study combines qualitative data from focus groups with quantitative survey analysis. The findings highlight the advantages and disadvantages of PV PSS business models compared to traditional purchasing models with subsequent self-ownership. They further reveal that these models are driven primarily by financial considerations, with limited emphasis on circular economy principles. Building on these insights, the study develops six key decision criteria – cost structure, revenue opportunity, investment requirements, flexibility in property development, competency distribution, and life cycle management – essential for evaluating solar PV business models. These insights aim to guide procurement departments in selecting PV installation models and support policymakers in creating enabling regulatory frameworks. Theoretically, this study contributes by examining the underlying value logic of solar PV business models, complementing demand-side research in this field, and bridging insights between solar PV business models and PSS concepts.
... Aligned with the contingency approach, the literature on sustainable and circular economy business has shown that organisational designs and choices can shape the outcome and focus of circular innovation and related practices (Arranz and Arroyabe, 2023;Bocken and Konietzko, 2023). In this regard, we examine circular resource strategies across three functions: businesses' own operations (de Sousa Jabbour et al., 2019), the supply chain (Lüdeke-Freund et al., 2017;Farooque et al., 2019), and products and services (Wang et al., 2022;Tukker, 2015). These functions eventually come together at the business model and ecosystem level to facilitate a system of reuse and recycling (Adams et al., 2016: Bocken et al., 2016Brown et al. 2021;Konietzko et al., 2020). ...
... A new focus lies on regenerative design, for instance by ensuring that products and services improve the health of the planet, rather than detracting from it, although this area is still developing (Das and Bocken, 2024). Relatedly, there are business models that combine product and service innovations for the circular economy (Tukker, 2015) into bundles of different activities and approaches (cf., Zott and Amit, 2010). These may involve rental and lease to allow for reuse and recycling, or premium sales models involving high levels of services to repair and maintain products and slow resource flows (Stahel, 2010;Tukker, 2004Tukker, , 2015. ...
... Relatedly, there are business models that combine product and service innovations for the circular economy (Tukker, 2015) into bundles of different activities and approaches (cf., Zott and Amit, 2010). These may involve rental and lease to allow for reuse and recycling, or premium sales models involving high levels of services to repair and maintain products and slow resource flows (Stahel, 2010;Tukker, 2004Tukker, , 2015. Regenerative business models may be fully focused on nature restoration (Hahn and Tampe, 2021) like the Ocean Cleanup which cleans up plastic from the ocean (Das and Bocken, 2024). ...
... PSS can be categorized into product-oriented, application-oriented, and result-oriented models [17,18]. Renting or sharing resources (e.g., equipment, information, platforms) in application-oriented and resultoriented PSS is a promising way to enhance resource utilization and promote sustainable business [19,20]. ...
... The synergistic benefit for the supplier and demander, denoted as R 1 and R 2 respectively, capture the combined effects of physical asset utilization and value-added logistics service. Consequently, R 1 and R 2 can be calculated by Eq. (18) and Eq. (19), respectively: ...
Efficient warehousing resources distribution is essential for reducing logistics costs and improving supply chain performance. With advancements in information technology and the rise of the sharing economy, many enterprises are adopting the product-service system (PSS) to support cleaner production (CP) and circular economy (CE) strategies. However, logistics stakeholders face many challenges in developing effective sharing strategies under dynamic markets and personalized demands. To address these challenges, an evolutionary game-based approach to warehousing resource sharing (WRS) under the PSS paradigm to maximize stakeholder benefits is proposed in this paper. By using double auction mechanisms, a utility functions for suppliers and demanders are designed, after which the replicator dynamics equations and Jacobian matrices are applied to identify the evolutionarily stable strategies (ESS). Finally, a case study with numerical simulations are carried out to confirm the feasibility of the proposed approach. The results highlighted three key findings: (1) low cloud platform operating costs are vital for enabling unsupervised management; (2) suppliers exhibit sensitivity to initial sharing probabilities and subsidy rates; and (3) demanders can achieve enhanced flexibility and redundancy reduction through high information resource saturation. These insights can inform the formulation of effective WRS strategies to foster sustainable and competitive logistics ecosystems.
... Luu et al. (2023) observe a weak link between government policies and circular practices, emphasizing the need for stronger policies and specialized education for sustainability professionals. Key strategies to optimize resource use and minimize waste include eco-design, extending the lifespan of products, valorising waste, and promoting service-based consumption models (Fehrer & Wieland, 2021;Karlsson & Luttropp, 2006;Merli et al., 2018;Tukker, 2015). Effective management of resource flows supports a sustainable economic system (Franco, 2019;Salvador et al., 2020), while reverse logistics, sustainable procurement, and environmental management systems are also crucial (Galdos-Urbizu et al., 2024). ...
... • Implementation of the "pay per use" concept with services extended throughout the product's life cycle (Bocken et al., 2018). • Complete servitization of the offer (Tukker, 2015). ...
This research explores the integration of circular economy practices in SMEs within the machinery and equipment sector in the Basque Country (Spain), aiming to identify opportunities for transitioning towards circular models. Using the Circular Business Scan methodology, 11 industrial SMEs are analyzed, identifying eco-design, eco-innovation, and resource valorization as key elements in their business models. The results demonstrate how circular economy practices enhance competitiveness by creating new business lines, reducing costs, and optimizing processes. Furthermore, the importance of practices such as repair, refurbishment, and recovery of products is highlighted. The study also emphasizes the need to develop both technical and cultural internal capabilities to support the transition to circularity. Additionally, the impact of public policies is highlighted, as they can transform the perception of the circular economy within companies, viewing it as a strategic opportunity to improve competitiveness. This work contributes to the theoretical development of circular economy in industrial SMEs, emphasizing the role of organizational and cultural factors, beyond structural variables. It also provides empirical evidence that can contribute to the formulation of public policies and support programs more tailored to the context.
... This value is often facilitated through different payment models that reflect different relationships between producers, consumers, and products in comparison to traditional transactional sales. For example, in a PSS, value is created by allowing customers to pay per unit, for availability, or at fixed rates (Tukker 2015). In CBMs, customers can pay per unit of service, function, and result, or pay price premiums (Lüdeke-Freund, Gold, and Bocken 2019), while in sharing BMs, they can pay for temporary access (Curtis and Mont 2020). ...
... When products are treated as capital assets, service providers are more motivated to reuse, repair, refurbish, and even remanufacture them, unlike traditional products designed for short lifespans and planned obsolescence (Mont, Whalen, and Nussholz 2019). For PSS to achieve its environmental potential, environmental goals need to be designed into PSS from the start (Tukker 2015). ...
Research on business models for sustainability (BMfS) has primarily focused on the conceptual aspects and sustainability potential of BMfS rather than their actual impact. There is a need to understand whether BMfS have less environmental impact on society than conventional business models and in what context and conditions they can reduce impact. This research conducted a systematic literature review utilizing three databases to identify comparative life cycle assessments (LCAs) of BMfS and conventional business models. These studies were analyzed by comparing their scope of assessment, functional unit, environmental indicator categories, impact, sensitivity factors, geographic, and business model factors affecting the impact. We found that the impacts of BMfS varied greatly, with some cases showing the same, increased, or decreased environmental impacts compared to conventional business models. There were no certain types of BMfS that indicated greater environmental potential than others. Our findings highlight the discrepancies in the environmental impact reduction claims of BMfS, pointing to the need for a detailed examination of specific factors such as rental efficiency and time frames, customer logistics and behavior, product, and parts' service life, transport, rental infrastructure, end‐of‐life activities, and pricing. These factors, or leverage points for impacts, significantly influence BMfS' sustainability performance.
... Existing literature offers valuable insights into strategies such as Design for Sustainability (DfS), eco-design (Bhamra and Lofthouse, 2016), and product-service systems (PSSs) (Tukker, 2015) that integrate sustainability into design processes (Ceschin and Gaziulusoy, 2016). Despite these advances, a gap exists between theoretical frameworks and their translation into design practices. ...
... Since the 1990s, these approaches have enriched design discourse and can be broadly categorised under the term DfS, encompassing product-focused concepts like eco-design as well as systems-oriented approaches such as Design for System Innovations and Transitions (Ceschin and Gaziulusoy, 2016). Over time, the field of DfS has shifted its focus from product-level innovation to system-level transformations (Tukker, 2015). This evolution can be mapped as a progression from product innovation to socio-technical system design, with intermediate stages including product-service systems and spatio-social innovations (Ceschin and Gaziulusoy, 2016). ...
... Firms can use different eco-innovation strategies to create more sustainable products. Product eco-innovations, such as the use of sustainable materials, residue valorisation, product life extension [19,48] refurbishment by replacing or repairing defective components, and disassembly and recovery of used products [5,19], and the transition from products to functional services, dematerialisation of products and/services, extended producer responsibility, and also renting/leasing/pooling business models [49], can boost CE [7,50]. Firms working on joint sustainable solutions to common problems can share significant gains with better economic, social, and environmental value. ...
Understanding circular economy (CE) practices in companies is still limited, with a call for more empirical studies to clarify micro-level actions involved in CE and equip practitioners and decision-makers with more insights and information to facilitate the shift of organisations and societies towards a CE. The goal is to evaluate the micro-level CE factors, within EMAS and ISO 14001 Portuguese companies, to understand their relationships and envision ways to foster CE. Exploratory factor analysis uncovered the underlying structure of the data identifying a set of CE factors. An online survey of 117 companies was used to test the relationships among factors with a bivariate Pearson correlation matrix, and mediation analysis. Some prominent results are the drivers' impact on benefits such as resource usage optimisation, business opportunities, and customers and workers satisfaction which are amplified by the mediator effect of the motivations, i.e., environmental tools and instruments usage and competitiveness development, with the mediation accounting for 40% of the overall effect. The results highlight the role of internal and external barriers on drivers and motivations as lowering the barriers will improve drivers, motivations and benefits. Policymakers can take away the relevance of the mediator effect of environmental tools and instruments usage and invest and further develop those tools in policies and initiatives promoting CE. These findings provide opportunities for managers and decision-makers to strengthen the adoption of circular practices to achieve the European Green Deal goals.
... Material flow analysis provides essential methodological support for Closed-Loop Systems implementation, enabling organizations to track resource flows, identify optimization opportunities, and measure circularity performance (Brunner &Rechberger, 2016). This analytical approach proves particularly valuable in IT supply chains, where complex material compositions and rapid technology evolution create unique challenges for circular economy implementation.Product-as-a-Service business models represent innovative approaches to implementing Closed-Loop Systems, enabling organizations to maintain product ownership while delivering value through service provision (Tukker, 2015). This model aligns provider and customer incentives for product longevity, repairability, and end-of-life recovery, creating economic drivers for circular design and operational practices.The integration of blockchain technology with Closed-Loop Systems enables comprehensive traceability and verification of circular economy claims, addressing consumer and regulatory concerns about sustainability authenticity (Kouhizadeh et al., 2021). ...
The escalating environmental impact of Information Technology (IT) supply chains necessitates a paradigm shift toward sustainable practices. This comprehensive study investigates how Green Artificial Intelligence (AI), Digital Twins (DT), and Closed-Loop Systems (CLS) can revolutionize IT supply chain sustainability by 2050. Through an extensive mixed-methods analysis of 450 global IT companies and 1,200 supply chain stakeholders across six continents, this research examines the complex interplay between technology adoption, sustainability performance, and circular economy principles.The study employs a robust methodological framework combining quantitative analysis with advanced structural equation modeling to test hypotheses regarding the relationships between Green AI implementation, Digital Twin adoption, and Closed-Loop System integration on IT supply chain sustainability. Results indicate that integrated deployment of these technologies can reduce carbon emissions by 68%, improve resource efficiency by 74%, and enhance circular economy adoption by 82% by 2050. The research contributes significantly to the literature by proposing a comprehensive theoretical framework that bridges technology innovation with sustainability outcomes in IT supply chains, while providing actionable insights for practitioners and policymakers navigating the complex landscape of sustainable digital transformation.
... For instance, PSS-based municipal services can include equipment leasing and take-back schemes, incentivising product reuse, modular repair, and material recovery. These models reduce landfill dependency and raw material extraction while increasing operational efficiency in waste and resource flows [134][135][136]. Additionally, PSS enables environmental monitoring as a service, for example, air or water quality tracking platforms offered as integrated service solutions, enhancing urban environmental governance [88]. ...
This conceptual paper delves into the validity of product‐service systems (PSS) in driving smart city development. Existing research often treats smart cities as primarily technology‐driven constructs, overlooking how organisational measures and strategies such as PSS can contribute to their sustainability ambitions and, thus, smart city initiatives. Through an integrative literature review of selected 145 academic papers across smart cities, sustainability, innovation, digitalisation and product‐service systems, this paper introduces a framework that maps PSS onto six core dimensions of the Smart City concept—dimensions identified from the previous research, never before presented together. The findings reveal that PSS enables organisations to transcend beyond isolated organisation focused sustainability driven solutions into wider smart urban surroundings and capabilities. The framework emphasises how PSS can contribute to environmental goals, governance reforms, social inclusion, and economic resilience, thus, being able to provide value for both private and public actors, and citizens. The paper addresses a key research gap and calls for empirical validation to further study how PSS can contribute as a scalable and designable enabler of smart city development.
... A complementary approach to promote circularity in buildings is shifting from ownership-based housing models to Product-Service Systems (PSS) (Tukker, 2015). In a PSS model, housing-related assets -such as kitchens, façades, or heating systems -are provided as services rather than products, potentially extending product lifetimes and reducing material consumption (Ghafoor et al., 2024). ...
Shifting towards a circular economy in the built environment is considered an important step toward fostering environmentally sustainable and socially resilient cities. Housing cooperatives, established to provide affordable and democratically governed housing, may offer structural advantages for embedding circularity - but their role in circular transitions remains underexplored. This study investigates how cooperative governance may influence the implementation of circular strategies, including circular design, product-service systems, and shared resource models, across different housing types. Drawing on semi-structured interviews with housing professionals, cooperative representatives, service providers, and policymakers, we assess the comparative institutional advantages and limitations of cooperatives in enabling circular transitions. Our findings indicate that housing cooperatives can mitigate market failures and overcome split incentives through collective ownership, long-term planning, and participatory governance. These features help facilitate lifecycle-based investments, bundled procurement, and shared infrastructure. However, cooperatives also face key challenges, including complex decision-making, limited access to finance, and regulatory barriers. This paper contributes to the understanding of alternative housing models for urban sustainability by offering insights into how cooperative-led initiatives can support circular innovation. It identifies boundary conditions for aligning stakeholder perspectives and embedding circular strategies within cooperative housing, helping to inform inclusive, community-based responses to climate and resource challenges.
... This study examined how manufacturing workplaces are being transformed by circular economy (CE) practices while supporting the achievement of net zero emissions (Antikainen &Valkokari, 2016;Tukker, 2015). Based on an in-depth review and analysis of secondary data from scholarly literature, industry reports, and global case studies, several key findings have emerged (Singh et al., 2022;Khan et al., 2023b;Singh et al., 2023a). ...
The manufacturing sector is a primary contributor to global environmental issues, such as waste production, resource depletion, and greenhouse gas (GHG) emissions. As industries face increasing pressure to align with net zero emission targets, one revolutionary approach to tackling these environmental issues is circular economy. Unlike the traditional linear "take-make-dispose" approach, the CE emphasizes closing material loops through strategies as product life extension, recycling, and remanufacturing, which lower waste and pollution. The current study explores the dual the circular economy's contribution to improving environmental sustainability and changing manufacturing environments focusing on its potential to drive net zero emissions while transforming organizational structures, employee roles and workplace culture. The existing research adopts a qualitative research methodology, leveraging secondary data from industry reports, case studies, and peer-reviewed journals to analyse the application, difficulties, and effects of CE practices in the manufacturing sector. After reviewing the literature, the research findings revealed that CE adoption is gaining momentum globally, with companies integrating strategies like resource-efficient production, closed-loop supply chains and renewable energy use.
... Educating individuals at all levels is crucial for facilitating the transition to a CE. Consumer involvement is essential in this process, as they need to embrace product-service systems to change their behaviors (Tukker, 2015). The marketing perspective plays a significant role in shaping culture by creating markets through the four Ps of the marketing mix: price, place, promotion, and product (Kotler, 1996). ...
The circular economy (CE), or circularity, is a concept widely embraced by researchers and policymakers to enhance sustainability in marketing innovation. This approach emphasizes recycling, reusing, and reducing waste, catering to the needs of eco-conscious consumers while improving companies' brand images. However, existing research on CE has primarily concentrated on established businesses and multinational corporations, with limited focus on emerging areas, especially the marketing perspective of CE. To address this gap, a systematic literature review (SLR) protocol was conducted using the Scopus and Web of Science (WoS) databases to identify key scholarly works. VOSviewer was employed to perform a bibliometric analysis and visualize the findings. The results indicate that implementing CE can significantly enhance marketing innovation, foster the development of innovative business models, attract eco-conscious consumers, and inspire new marketing strategies. Additionally, the research identifies challenges related to CE and underscores the importance of integrating CE into marketing practices. These findings not only guide future research but also aid policymakers in implementing CE within the marketing sector. This conceptual review introduces a novel framework that positions marketing as a driver, rather than just a supporter, of CE practices. It applies paradox theory to analyze tensions and offers a structured visualization of CE marketing systems. These contributions distinguish our study from the existing literature while highlighting both the theoretical and practical significance of this approach.
... From the costeffectiveness perspective, reducing reliance on virgin materials often benefits firms operating in resource-intensive industries such as construction, automotive, or electronics (Bressanelli et al. 2020). Designing out waste and implementing take-back schemes (Linton et al. 2007) can yield more predictable input costs and foster product-service systems that emphasize product longevity over volume sales (Tukker 2015). ...
The Circular Economy (CE) has emerged as a transformative organizational paradigm designed to address the environmental limitations of linear production and consumption systems. Despite its growing prominence, there is ongoing debate about the extent to which CE truly embodies sustainability, particularly whether it adequately addresses the economic, environmental, and social dimensions defined by the Triple Bottom Line (TBL). This study investigates how the TBL approach is addressed in organizational CE research by conducting a bibliometric analysis of 815 academic publications spanning the past two decades. The results reveal a consistent increase in scholarly engagement, marked by a shift from operational‐level concerns toward more systemic approaches focused on resource efficiency and innovative business models. However, the analysis also highlights a notable underrepresentation of the social dimension, raising concerns about the comprehensiveness of current sustainability assessments. Based on these findings, the study identifies key research gaps and proposes eight future research directions to advance a more balanced and integrated understanding of CE as a sustainable model.
... To bolster the adoption of CE, an array of tools, frameworks, indicators, and guidelines have been developed. These focus on reshaping business models and products, creating new ones, assessing and evaluating circularity, or simply integrating r-strategies into current business practises (Tukker 2015;Ghisellini et al. 2016;Geissdoerfer et al. 2017;Moraga et al. 2019). Yet, most of these approaches fail to acknowledge that such a fundamental shift in business operations requires a differentiated understanding of how value creation, delivery, and capture must evolve to align with CE principles (Sjödin et al. 2020). ...
This study addresses a critical research gap by examining sector‐specific barriers and enablers of circular economy adoption in the mobile phone industry, focusing on their influence on the value framework of circular business models. Through a systematic literature review, network mapping, and causal loop diagram, the study synthesises insights into feedback mechanisms driving or hindering CE adoption. Key findings reveal 51 barriers and 48 enablers categorised into six domains: financial and market, operational, organisational, policy and regulation, intrinsic, and technology and knowledge. Barriers include cost uncertainties, limited infrastructure, and consumer reluctance to repair, while enablers such as product lifecycle extension, reverse logistics, and regulatory incentives offer pathways for CE adoption. The feedback mechanisms identified through the causal loop diagram inform the study's four key propositions. First, aligning value creation with CE principles requires modular design, operational efficiencies, and collaborative ecosystems to address industry challenges and extend product lifecycles. Second, refining the value proposition demands balancing environmental, economic, and technological competitiveness, addressing consumer perceptions, and employing circularity metrics to drive adoption. Third, optimising value delivery and capture necessitates collaboration, regulatory support, and restructured mechanisms to preserve utility, enable material recirculation, and ensure sustainability across lifecycles. Fourth, overcoming cooperation barriers and fostering inclusive partnerships are vital to enhance stakeholder collaboration and achieve CE's environmental, economic, and social goals. Through these propositions, this study provides actionable strategies for operationalising CE principles, aligning CBMs with sustainability goals, that could enable a systemic transition towards circularity in the mobile phone industry.
... All CE innovation strategies are important in a successful CE business approach and are therefore complementary (Konietzko et al., 2020). However, to achieve the greatest environmental impact, CE concerns need to be integrated early in the product and business model design phases (Tukker, 2015). ...
... Locates research by searching potential literature through the Scopus database. Scopus is not only a widely used and recognized database in academia [22][23][24] but it is also considered the largest source of abstracts and scholarly citations [25]. • Searched for the keyword "circular supply chain" in the paper title. ...
The cyclic process of the circular supply chain (CSC) involves many stakeholders, and how to synergistically promote the active participation of different entities in CSC practices in the complex context of interacting factors is an important condition for moving towards low-carbon sustainable development and realizing the economic benefits as well as the competitive advantages of enterprises. Therefore, based on the technology cycle perspective (recycling, remanufacturing, refurbishing, repairing, and reusing), this study combines text mining and bibliometrics to identify CSC drivers, establish a factor prioritization assessment model, and construct a comprehensive framework for a set of CSC implementation pathways covering multiple subjects and multidimensional factor interaction mechanisms. The results emphasize that the most critical drivers are policies and regulations, resource use efficiency, and consumer awareness and attitudes, with contribution rates of 5.1%, 4.5%, and 4.5%, respectively. On this basis, this paper explores the efficiency-enhancing path strategy for the synergistic implementation of CSC by multiple subjects from the perspectives of the four key subjects of CSC. It puts forward policy recommendations to promote the successful implementation of CSC at the level of mechanism construction and specific operation, to provide theoretical guidance for the cooperation of upstream and downstream subjects.
... NVs per GDP, addressing the impacts of abiotic resource use may require strategies such as enhancing resource efficiency or changing sourcing countries to those with lower mine production-based CFs (Maeno et al. 2025;Schandl et al. 2018;Tukker 2015). These measures are essential to decouple economic growth from the inducing impacts of abiotic resource mining. ...
Purpose
Life cycle impact assessment (LCIA) quantifies the potential impacts of environmental loads in the characterization step and evaluates their significance in the normalization step. This study develops consumption-based characterization factors (CFs) and normalization values (NVs) for abiotic resource use using a multi-regional input–output model. Consumption-based accounting in these steps is critical for ensuring consistency between the scope of these steps in LCIA and the overall evaluation scope of the life cycle assessment (LCA) study.
Methods
We calculated the consumption-based CFs and NVs for the target year 2015, covering 189 countries and regions for 29 mineral resources and three fossil fuels. These calculations were based on estimates of induced mine production and the adoption of country-level mine production-based CFs. The mining sector in the Eora multi-regional input–output database was disaggregated using country-level mine production data and trade statistics, enabling the estimation of induced mine production for each consuming country. A user cost model was adopted to calculate country-level mine production-based CFs.
Results and discussion
Consumption-based CFs varied significantly, with the maximum values being up to 3,300 times higher than the minimum, depending on the consuming countries. This highlights the importance of considering supply chain differences when assessing the potential impacts of abiotic resource use. The USA had the largest consumption-based NVs, followed by China and Brazil, with fossil fuels as the primary contributing resources. Some countries (e.g., Japan and Germany) exhibited notably higher consumption-based NVs compared to mine production-based NVs, reflecting their scarcity of primary resources in-country and underscoring the relevance of consumption-based NVs. Compared to previous studies with lower resolution for target resources, the consumption-based NVs developed in this study, which differentiate a greater variety of resources, offer more plausible results and enable more flexible analyses targeting specific resources.
Conclusions
Consumption-based accounting of the potential impacts associated with resource use can support LCA practitioners in conducting region-specific analyses without the need to identify mining countries for abiotic resources. The findings can also be utilized to analyze the responsibilities of consuming countries, sustainable supply chain management, and country-level supply risk assessments. Future work should focus on improving the disaggregation of metal-related sectors using smelter, refinery, and manufacturing data.
... IN refers to the development or enhancement of products, services, processes, or business models that deliver new or improved value to customers and stakeholders. It is widely recognized as a driver of OC, enabling firms to differentiate themselves, reduce costs, respond to market changes, and improve sustainability performance [65,66]. ...
This study examines the perceived relationships between circular economy practices, procurement strategies, and organizational competitiveness using a theory-driven model and survey data from future business professionals. Drawing on multiple theoretical perspectives, the research explores how circular economy practices and procurement strategies influence organizational competitiveness and investigates the mediating and moderating roles of organizational culture, stakeholder pressure, resource availability, innovation, and industry characteristics. The findings suggest that circular economy practices not only contribute to environmental goals, but also hold strategic value for competitive advantage. Procurement strategies are found to be more than operational tools; they act as strategic levers that shape sustainable performance. Based on cross-sectional survey data with a sample of 568 respondents, the study sheds light on patterns that highlight the importance of organizational culture, innovation, and resource access in reinforcing the link between sustainability and competitiveness. Although the data reflects perceptions rather than organizational behavior, the study offers conceptual foundations and future-oriented insights into how the systemic interactions between sustainable practices, procurement, and competitiveness are likely to be interpreted and enacted. Therefore, the insights inform both academic research and managerial practice by emphasizing the strategic value of integrating circular economy principles and procurement strategies within a broader sustainability-oriented framework.
... Building on the S-D theory, this study suggests that implementing a service-oriented strategy reduces reliance on high-pollution energy sources and tangible resources, promotes value cocreation, optimizes internal governance, and thereby enhances enterprises' ESG performance. Firstly, embedding service elements into products, such as operation, maintenance, and after-sales services, optimizes product performance, extends product lifecycles, reduces energy consumption, and alleviates environmental pressure [40]. Secondly, implementing a service-oriented strategy can integrate and share cross-industry and cross-feld resources and heterogeneous knowledge, break down organizational boundaries, foster collaborative innovation with partners, and help form a value cocreation ecosystem [41]. ...
At present, utilizing servitization to enhance the ESG performance of manufacturing enterprises is an important strategic path for achieving carbon reduction and sustainable development in the manufacturing industry. Using ordinary least squares (OLS) regression and a sample of A-share listed manufacturing companies from 2010 to 2022, this paper investigates the impact of servitization on ESG performance and its mechanism, based on the theory of service-dominant logic. We find that servitization of manufacturing enterprises is conducive to improving ESG performance. Mechanism testing suggests that servitization improves corporate ESG performance by leveraging innovation-driven effects and resource allocation effects. Heterogeneity analysis reveals that the impact of servitization on ESG performance is more significant in high-pollution, high-technology, and growing enterprises. Our findings enrich theoretical studies on servitization and provide new insights for enhancing manufacturing enterprises’ ESG performance and promoting green and high-quality development in the manufacturing industry.
... Circular BMs prioritize retaining value through repair, refurbishment, and recycling (Linder & Williander, 2017). Product-service systems, in which providers retain ownership and responsibility for reuse, exemplify this approach (Tukker, 2015). ...
Collaboration is vital for the transition to a circular economy. However, existing ecosystem design approaches lack essential elements required for circularity. Our four-stage Circular Ecosystem Development Framework addresses these gaps, exemplified by the plastic packaging sector. It fosters sustainable, collaborative, and transformative circular ecosystems across diverse industries, incorporating governance and user-level transformation.
... TaaS builds upon established principles of servitization in the automotive sector, where manufacturers and fleet operators prioritize usage-based models over direct ownership [30]. This concept has gained traction in various industries, including aviation and heavy machinery, demonstrating its potential for reducing costs while enhancing resource efficiency [31]. ...
Rapid urbanization has intensified pressure on transport infrastructures, with urban bus networks playing a crucial role in promoting sustainable mobility. However, managing operational costs while minimizing environmental impacts remains a major challenge. This study investigates the innovative “Tire-as-a-Service” (TaaS) model applied to bus fleets, incorporating regrooving and retreading techniques to improve tire durability and efficiency. The TaaS model shifts the focus from purchasing tires to a service-based approach, where users pay according to usage (i.e., kilometers driven), promoting proactive maintenance and waste reduction. Solving this problem is based on a discrete-event simulation algorithm to optimize tire inspection schedules and, consequently, minimize total costs while guaranteeing a minimum level of service and reducing environmental impact. A robustness analysis will validate the model developed, thus contributing to a more sustainable urban transport system.
... This model can take various forms, such as rental, leasing, and pay-per-use or subscription services (Roman and others, 2023). This model, sometimes called product-service systems (PSS), can allow a company to focus on customer needs, rather than the product, which makes it easier to design need-fulfilment systems with a lower environmental impact (Tukker, 2015;Henriques and others, 2023). There are many types of PSS systems in use today, and not all of them are circular or sustainable -but when resource sustainability is the goal -they can be a very powerful tool. ...
The way humanity perceives and uses our planet’s natural resources is dangerously unsustainable. The world relies almost exclusively on new materials to make the products and infrastructure we use daily, and this is contributing to the interconnected planetary crises of climate change, biodiversity loss and pollution. While we are consuming resources faster than they can be replenished, much of what we produce from these resources ultimately ends up as waste. These actions harm the environment and endanger the sustainability of life on Earth. So why does it still happen? By applying the Theory of Deep Change, developed for the 2025 edition of the Interconnected Disaster Risks report, this technical background report discusses the risks perpetuated by linear production and consumption and what a better system could look like. The report discusses the benefits of circular systems, which treasure and preserve resources, making sure things are used as long as possible and later become the input for something else. The report highlights the necessity for deep change that can be achieved by changing societal assumptions and values, called inner levers, combined with structural changes, such as new laws, infrastructure or behaviors, called outer levers. With this, we can guarantee no scarcity, food and water security for all, and a healthier and more equitable life. Pieces of a more harmonious world are already in place, demonstrating that change is possible if only we encourage our societies to act accordingly.
... These 'leasing or sharing' models are part of the ecosystem of the sharing economy (Boons and Bocken, 2018) and combine 'temporary access non-ownership models' with 'online platforms' (Belk, 2014). They include rental, leasing, or subscription 'product-service systems' (PSS) (Tukker, 2015), for example 'tool libraries' that aim to maximise product usage while minimising environmental impact (Ameli, 2017). Re-Commerce or 'second-hand P2P platform' models take consumer value-creation a step further by aggregating it, enabling the operation of large online platforms for P2P exchange such as eBay, Craigslist, Letgo, and Leboncoin (Arman and Mark-Herbert, 2021;Fors et al., 2023). ...
... Product-Service Systems (PSS) is a novel business model that integrates products and services to provide comprehensive solutions tailored to customer needs [1]. By combining tangible products with intangible services, PSS promotes a shift from a use-oriented business to an ownership-oriented business [2]. Compared with selling products, PSS is considered a sustainable solution to save material [3,4,5]. ...
For recent decades, the Product-Service System (PSS) have gained substantial attention due to its novelty in integrating products and services to deliver enhanced value and sustainability. However, the increasing complexity of PSS introduces a range of frequent operational risks, which reduces the effectiveness of PSS and stakeholders’ confidence in PSS. To improve the robustness of PSS, this study proposes a novel method for PSS redesign that integrates Fuzzy Logic with Bow-Tie Analysis to systematically assess and mitigate risks associated with PSS value proposition. Compared with the existing PSS redesign methods, the proposed method shows stronger performance in eliminating the uncertainty of PSS failure assessment and promoting stakeholders’ participation in PSS redesign. A case study of a shared smart-pen system is used to demonstrate the practical application, which shows its effectiveness in pinpointing critical areas for improvement and optimizing design to minimize risks.
The rapid industrialization of recent decades has driven significant economic growth and improved living standards. However, this development has often come at the expense of ecological sustainability, leading to severe resource depletion. Many industries have traditionally operated within an unsustainable "take-make-consume-dispose" economic framework. Compounding this challenge is the alarming rise in global waste production, projected to increase by an additional 70% by 2050 if current trends persist. In response, businesses increasingly adopt circular economy (CE) models by producing circular products as a sustainable alternative to the conventional linear paradigm. The circular economy facilitates a transformative shift, addressing the limitations of linear models and mitigating their adverse environmental impacts.
The global trend of integrating recycled raw materials into asphalt mixtures is increasing due to its environmental benefits. However, awareness about the comparable or superior performance of these mixtures compared to those made solely from virgin materials remains limited. This study aims to introduce a sustainable Product-Service System (PSS) using the Requirements Engineering approach in an asphalt plant industry through a method named R-PSS (Requirements -Product-Service System. Our solution facilitates greater incorporation of Recycled Asphalt Pavement (RAP) in asphalt production, offering sustainability advantages such as reduced virgin material consumption, partnerships with local suppliers, and improved economic efficiency. We evaluated the solution's impacts on environmental, social, and economic sustainability within the PSS. The assessment revealed significant benefits, including a reduced environmental footprint and an extended system lifespan. These results highlight the importance of adopting a Circular Economy approach that meets market needs while adhering to Environmental, Social, and Governance (ESG) principles.
The relationship between customers’ intentions to make a purchase and environmentally friendly technologies sheds insight into an increasing consumer trend toward ecologically conscious purchasing behavior. As environmental concerns escalate, consumers increasingly favor products and services that incorporate sustainable technologies. This indicates a transition towards prioritizing ecological effects in purchasing decisions. Research indicates a growing interest in this field; hence, the study aims to investigate the understanding of sustainability and purchasing intentions. A bibliometric analysis was performed using information gathered from 556 publications in the Scopus database. In addition to providing novel themes, the purpose of this study is to obtain trends at the intersection of purchase intention and sustainability with the assistance of a review of the relevant literature. By identifying trends and suggesting potential research topics, this study advances scholarly research on sustainability.
The circular economy (CE) aims to reduce, reuse, recycle, remanufacture, redesign and recover products for resource optimization, leading to long-term sustainability. The electronics sector (ES), characterised by increasing e-waste, resource scarcity and operational risks, is transitioning towards CE. The existing studies on CE implementation remain fragmented and lack a comprehensive framework guiding circularity initiatives in the ES. The current study addresses this gap by developing an integrated conceptual framework that synthesises existing knowledge on models, perceived benefits and challenges of CE implementation in the ES. It included a systematic literature review of relevant journal articles, white papers and industry reports identified using keywords shortlisted in consultation with industry experts. The methodological approach used in this study included descriptive, content and thematic analyses of the literature to create an integrated conceptual framework. Findings reveal that while CE research in the ES is expanding, it remains predominantly qualitative and exploratory, lacking confirmatory empirical studies. The proposed framework integrates antecedents, mediators, moderators and consequences of CE implementation, offering a structured approach for scaling circularity. Further, the study identifies future research directions using the theory, context, characteristics and methodology (TCCM) framework, providing valuable insights for both theoretical development and empirical research in the domain.
The global trend of integrating recycled raw materials into asphalt mixtures is increasing due to its environmental benefits. However, awareness about the comparable or superior performance of these mixtures compared to those made solely from virgin materials remains limited. This study aims to introduce a sustainable Product-Service System (PSS) using the Requirements Engineering approach in an asphalt plant industry through a method named R-PSS (Requirements - Product-Service System. Our solution facilitates greater incorporation of Recycled Asphalt Pavement (RAP) in asphalt production, offering sustainability advantages such as reduced virgin material consumption, partnerships with local suppliers, and improved economic efficiency. We evaluated the solution's impacts on environmental, social, and economic sustainability within the PSS. The assessment revealed significant benefits, including a reduced environmental footprint and an extended system lifespan. These results highlight the importance of adopting a Circular Economy approach that meets market needs while adhering to Environmental, Social, and Governance (ESG) principles.
This study aims to examine the latest literature at the intersection of prefabrication, modularity, and the circular economy (CE) through a bibliometric analysis. This systematic review follows five key steps: design and conceptualization, bibliometric data collection via the Scopus database, assessment of the collected data, data visualization, and discussion of the findings. The results are categorized into five main themes: prefabrication and modularity, CE in the construction sector, energy and environmental life cycle assessments, life cycle costing (LCC), and digitalization. The findings reveal that prefabricated and modular systems align with CE principles, supported by strategies such as disassembly and deconstruction design, as well as recycling and reuse. However, the direct connection between prefabrication/modularity and CE remains relatively weak, with environmental life cycle assessment (LCA) and building information modelling (BIM) emerging as the two primary methodologies bridging these concepts. To further advance the integration of prefabrication and modularity in CE, there is a need for the development of reliable guidelines and regulations that establish these practices as core requirements within the construction industry.
Income disparity is generally more pronounced in resource-based cities compared to non-resource-based counterparts due to various factors. However, research on the geographical distribution and determinants of income gaps within resource-based cities remains limited. This study utilizes the Theil index to quantify income disparities and employs Ordinary Least Squares (OLS) and Geographically Weighted Regression (GWR) methods to analyze their evolution and contributing factors. The findings indicate that (1) income disparity in China’s resource-based cities is concentrated, with high-high (H-H) concentrations predominantly located in specific regions, while the high-low (H–L) distribution is primarily observed in Ganzhou, which demonstrates a consistent annual decline; (2) Regarding the influencing factors, this paper examines urbanization levels, economic development status, industrial structure, fiscal decentralization, and government governance. Notably, while urbanization levels contribute to reducing the income gap, the effects of fiscal decentralization and industrial structure are increasingly significant, exhibiting spatial heterogeneity.
This study investigates the interplay between circular economy (CE) practices, Servitisation, and Industry 4.0 (I4.0) within the context of global Fortune 500 companies' disclosure practices examining how the sample reports on the use of Servitisation and I4.0 technologies as CE strategy across three phases: resource reduction, product lifecycle extension, and material recovery. Using content analysis and quantitative methods over a five‐year period (2018–2022). Findings indicate that while Servitisation and I4.0 positively influence early CE phases, I4.0's impact on recycling and recovery (CE‐Phase 3) is limited when control variables are considered. This suggests challenges in fully integrating I4.0 with advanced CE activities. The study contributes to the theoretical frameworks of resource‐based view (RBV) and dynamic capabilities theory (DCT) by illustrating how firms leverage their internal resources and capabilities to enhance their CE‐related disclosure practices through the adoption of Servitisation and I4.0 technologies. The findings suggest that companies must develop dynamic capabilities to adapt and integrate these technologies into their business models, particularly when transitioning to more advanced CE activities. The findings highlight the need for companies to develop dynamic capabilities to integrate I4.0 into advanced CE strategies to enhance transparency in their disclosure practices. Additionally, this study provides insights for regulatory bodies to refine CE disclosure guidelines and support businesses in overcoming implementation challenges. Future research should explore specific I4.0 technologies, the accountability challenges in CE transitions, and their impact on sustainability reporting frameworks.
In the pursuit of sustainable business practices, understanding the financial implications of environmental management has gained paramount importance. The Oil and Gas sector provided a critical role in the Nigeria’s economic growth and development. However, many have raised the concerns of the environmental impact of the exploration activities of the oil and gas companies within the Nigerian
Economy.
The environmental impact, methodological, and theoretical deficiencies discovered in this area were filled, and the study's purpose was met. Furthermore, this paper focussed on the empirical investigation of the environmental impact accounting and financial performance of listed Oil and Gas companies within the largest economy in Africa.
To address these environmental challenges and investigate the potential impact of environmental management accounting (EMA) practices on company performance, this paper utilized a quantitative methodology. Panel data from all the nine (9) Oil and Gas listed firms' audited financial statements from 2007 to 2023 on the Nigerian Exchange Group (NGX) as at September 30, 2023 were analyzed. It is important to note that these oil and gas companies may have variations in their EMA systems or policies.
To provide a varied representation of the industry, the businesses demonstrated particular requirements such as size, industry segment, and operational features. Variations in EMA practices may arise, however, due to the particular character of each business. Some businesses may have well established EMA systems with substantial environmental cost tracking and sustainability activities, whilst
others may have less thorough practices.
The paper findings argued that environmental effect and concerns have an impact on the financial performance of Nigerian listed oil and gas businesses. As a result, it was advised that investors consider environmental and operational factors while making investment decisions. Finally, authorities should adopt laws and regulations to ensure that Nigerian oil and gas corporations understand the need of incorporating environmental and operational performance into long-term strategic goals.
The Moroccan automotive sector, a major contributor to the national economy, has experienced rapid growth, accompanied by an increase in carbon emissions that threatens environmental sustainability. This chapter examines the potential of the circular economy (CE) to address these challenges, promoting practices of reuse, recycling, and reduction of materials throughout the product lifecycle. By adopting CE principles, the Moroccan automotive sector can shift away from the traditional “take, make, dispose” linear model, reducing environmental impact and enhancing economic competitiveness. Recognizing the global and national momentum for CE, the Moroccan government has aligned its National Strategy for Sustainable Development with CE principles, aiming to mitigate greenhouse gas emissions and foster sustainable practices.
The concept of zero waste manufacturing has surfaced as a revolutionary method for attaining sustainability, transitioning from the conventional linear economy to a circular economy (CE). This comprehensive review delves into the conceptual underpinnings, motivating factors, obstacles, illustrative case studies, technological advancements, regulatory structures, and evaluation metrics linked to zero waste manufacturing. The tenets of circular economy-minimizing resource consumption, repurposing materials, reclaiming waste, and innovating product designs-provide both ecological and financial advantages, such as diminished resource exhaustion, decreased carbon footprints, and enhanced cost efficiency. Although it holds great promise, the implementation of zero waste manufacturing encounters considerable obstacles, such as technological constraints, elevated expenses, absence of uniform recycling methods, and reluctance to embrace change. Significant advancements like chemical recycling, resource tracking through IoT, 3D printing technology, and modular design are improving sustainability; however, they demand considerable financial commitment. Moreover, regulatory structures such as the EU Circular Economy Action Plan and China's Circular Economy Promotion Law are instrumental in advancing zero waste initiatives, although the implementation of these measures often lacks consistency. Case studies across diverse sectors such as construction, fashion, and electronics showcase effective implementations while also uncovering unique challenges specific to each industry. Successful collaboration among stakeholders-including governmental bodies, enterprises, and consumers-is essential for amplifying zero waste initiatives. Additionally, indicators like material recovery percentages, reductions in carbon footprints, and rates of waste diversion play a crucial role in assessing advancement. Subsequent investigations ought to concentrate on evaluating long-term effects, the behavioural elements that affect adoption, and the contribution of AI in enhancing resource utilisation. This evaluation highlights the critical need to shift towards zero waste production to guarantee ecological sustainability, economic robustness, and worldwide resource stability.
Improving the sustainability of a system does not necessarily guarantee improved sustainability at the scale of broader systems, such as society and the environment. In order to achieve sustainable outcomes at a global scale, it is crucial to conduct thorough sustainability assessments that consider systemic effects. This chapter presents an assessment framework that distinguishes between first-order sustainability performance, which focuses on narrow efficiency issues, and second-order sustainability performance, which examines systemic efficiency and its impacts on society and the environment. It is important to note that improvements in first-order performance do not necessarily lead to improvements in systemic sustainability. To address this issue, the assessment framework includes three key dimensions: scale, decision horizon, and sustainability principles. This allows for an assessment of whether a specific action truly contributes to overall sustainable development.
Facing the needs of service-oriented manufacturing, it is a key task to flexibly allocate production resources to achieve the needs and well-being of different groups of end-users, including customers, operators, and managers. To this end, smart product-service system (smart PSS) has emerged as a novel systematic framework for engineering product development and service innovation in the context of human-cyber-physical system. Different from the traditional PSS, smart PSS focuses on providing the end-user’s requirements-oriented manufacturing services based on the mutual information interactions between physical space and cyberspace. This chapter discusses smart PSS’s features, enabling technologies, development process, and illustrate smart PSS’s process with an example of 3D printer product-service bundle configuration. Finally, some future perspectives of smart PSS are also discussed to welcome further in-depth research and practices.
In the current phase of growing environmental concerns and resource scarcity, the concept of the circular economy has emerged as a promising framework for sustainable resource management. By implementing the strategies of recycling, reuse, and remanufacturing, the concept of Circular Economy aims at transforming the traditional culture of production and consumption that was linear and led to wastage for the purpose of improving efficiency. This chapter aims to investigate potential applications for effective resource management. By examining case studies and theoretical frameworks, the chapter seeks to provide insights into the benefits and challenges of adopting circular economy strategies in various industries and sectors. This study employs a combination of qualitative and quantitative materials; mostly date will be gathered from the secondary sources, i.e., existing review of literatures, magazines, journals, websites, data.gov.in, etc. The collected data will be analyzed and elaborated in descriptive ways. The chapter expects to highlight the significant environmental, economic, and social benefits associated with circular economy practices, including reduced resource depletion, decreased waste generation, and enhanced resource security. Additionally, it anticipates uncovering challenges such as technological limitations, regulatory barriers, and cultural inertia that may bring an obstacle to the widespread adoption of circular economy principles. In conclusion, this chapter highlights the importance of transitioning toward a circular economy to achieve the objective of sustainable management of the resources. By synthesizing insights from research and real-world examples, it will provide recommendations for policymakers, businesses, and individuals to embrace circular economy strategies and contribute to a more resilient and resource-efficient future.
This paper is on Product Service systems (or product service combinations), commercial deals containing both a material product and an intangible service. The writers propose a method to analyse the economic and ecological qualities of these systems. They believe an understanding of product service systems is a next step on the way to econology: the junction of ecology road and economy lane. This text gives basic observations and definitions, offers an outline of a new assessment method and ten case descriptions. This paper has been written to stimulate discussion on this promising subject. It has been commissioned by the Dutch ministries of Environment (VROM) and Economic Affairs (EZ).
In recent years, manufacturing companies and service providers have moved towards offering customer-specific problem solutions. These integrated bundles usually consist of hardware, software, and service components and are called product service systems (PSS) or hybrid products. Since the success of the resulting solution depends on the understanding of all requirements, requirements engineering (RE) has become a key factor. The article analyzes the state of the art of RE for PSS based on an extensive literature review in the domains of product-, software- , and service engineering. For this, criteria are derived from the characteristics of PSS and from the task area of RE in the life cycle of PSS. Based on these criteria we analyze the most established RE approaches for their suitability for PSS. An important finding is that integrated/interdisciplinary approaches for RE are missing. Moreover, the maturity of RE approaches in the three domains varies significantly. All analyzed approaches heavily rely on concepts and solution characteristics of their own domain so that a transfer to other domains is hardly possible. This literature review lays the foundation for successful RE for PSS and especially for future research aiming at combining and integrating RE approaches and models of product-, software-, and service engineering. Such requirement models could connect concepts of single domains and enable an integrated and seamless RE for PSS.
Product-service system (PSS) approach has emerged as a competitive strategy to impel manufacturers to offer a set of products and services as a whole. A new three-domain PSS conceptual design framework supporting engineering design methodology is proposed in this research. Identification of the critical parameters in these domains plays an important role. Engineering characteristics (ECs) in the functional domain, which include product-related ECs (P-ECs) and service-related ECs (S-ECs), are identified by translating customer requirements (CRs) in the customer domain. Quality function deployment (QFD) is used to implement this translation process. Prioritizing ECs is a crucial issue in achieving the optimal PSS planning. First, to consider complex dependency relationships between and within CRs, P-ECs and S-ECs, the analytic network process (ANP) approach is integrated in QFD to determine the initial importance weights of ECs. Second, the data envelopment analysis (DEA) approach is applied to adjust the initial weights of ECs considering requirements of the manufacturers. In order to deal with the vagueness, uncertainty and diversity in decision-making, the fuzzy set theory and group decision-making technique are used in the supermatrix approach of ANP in the first phase. A case study is carried out to demonstrate the effectiveness of the developed prioritizing approach for ECs in PSS conceptual design.
Eco-efficient Product-Service System (PSS) innovations represent a promising ap-proach to sustainability. However the application of this concept is still very limited be-cause eco-efficient PSS are intrinsically radical innovations, that challenge existing customers' habits (cultural barriers), companies' organizations (corporate barriers) and regulative framework (regulative barriers). Because of these multi-dimensional changes, eco-efficient PSS can be considered complex and highly uncertain innova-tions, and therefore difficult to be predicted, planned and managed. Therefore the chal-lenge is not only to conceive eco-efficient PSS concepts, but also to understand which are the most effective strategies to introduce and diffuse these concepts in the market. Bringing together insights from innovation sciences (in particular transition manage-ment, strategic niche management and radical innovation studies), the paper puts for-ward an approach through which effectively manage the implementation and diffusion of eco-efficient PSS innovations. Starting from these results the paper outlines the implications on the design level. A new different role for design emerges. A role that may potentially opens new fields of activity alongside the consolidated ones. A role in which design is not only aimed at defining sustainable PSS concept but it is also aimed at promoting, facilitating and set-ting-up the conditions for implementing and diffusing this kind of innovations. Eco-efficient Product-Service System (PSS) innovation: a promising approach to sustainability It is widely shared that the transition towards sustainability will require a system discontinuity, meaning that a radical redefinition of the current structures of production and consumption is needed. In the second half of the '90s a series of studies and analyses led to a clearer understanding of the dimension of change necessary to achieve a society that is effectively and globally sustainable. These studies indicate that in 50 years, considering the raising consumption levels and the doubling of the world's population, a sustain-able society should use 90% less resources than industrialised countries are doing today (Factor 10 Club, 1994; Schmidt-Bleek, 1996; WBCSD, 1996). In other words, conditions for sustainability can only be achieved by drastically reducing the consumption of environmental resources compared to the current average consumption in mature industrialised contexts.
New business models in complex engineering products have favoured the integration of acquisition and sustainment phases in capability development. The product service system (PSS) concept enables manufacturers of complex engineering products to incorporate support services into the product’s manufacturing and sustainment lifecycle. However, the PSS design has imposed significant risks to the manufacturer not only in the manufacture of the product itself, but also in the provision of support services over long period of time at a predetermined price. This paper analysed three case studies using case study research design approach and mapped the service elements of the case studies to the generic complex engineering product service system (CEPSS) model. By establishing the concept of capability distribution for a PSS enterprise, the capability of the CEPSS can be overlaid on the performance-based reward scheme so that decision makers evaluate options related to the business opportunities presented to them.
Product-service system (PSS) approach has emerged as a competitive strategy to impel manufacturers to offer a set of product and services as a whole. A three-domain PSS conceptual design framework based on quality function deployment (QFD) is proposed in this research. QFD is a widely used design tool considering customer requirements (CRs). Since both product and services influence satisfaction of customer, they should be designed simultaneously. Identification of the critical parameters in these domains plays an important role. Engineering characteristics (ECs) in the functional domain include product-related ECs (P-ECs) and service-related ECs (S-ECs). ECs are identified by translating customer requirements (CRs) in the customer domain. Rating ECs’ importance has a great impact on achieving an optimal PSS planning. The rating problem should consider not only the requirements of customer, but also the requirements of manufacturer. From the requirements of customer, the analytic network process (ANP) approach is integrated in QFD to determine the initial importance weights of ECs considering the complex dependency relationships between and within CRs, P-ECs and S-ECs. In order to deal with the vagueness, uncertainty and diversity in decision-making, the fuzzy set theory and group decision-making technique are used in the super-matrix approach of ANP. From the requirements of manufacturer, the data envelopment analysis (DEA) approach is applied to adjust the initial weights of ECs taking into account business competition and implementation difficulty. A case study is carried out to demonstrate the effectiveness of the developed integrated approach for prioritizing ECs in PSS conceptual design.
Product–service system (PSS) planning has been attracting attentions of global manufacturers to change from providing only products to offering both products and their services as a whole. The PSS planning approach can maintain the functionality of products for customers throughout the
whole product life-cycle. Identification of the product and service parameters in early design stages plays a critical role in PSS development. The PSS planning is usually started by the mapping from customer requirements (CRs) in the customer domain to engineering characteristics (ECs), including product-related ECs (P-ECs) and service-related ECs (S-ECs), in the functional domain. In this paper, a systematic decision-making approach for PSS planning is developed to determine the optimal fulfillment levels of ECs considering requirements of customers and manufacturers. The PSS planning is conducted through four phases. First, the initial weights of ECs considering customer needs are achieved based on fuzzy pairwise comparison. Second, the data envelopment analysis (DEA) approach is applied to obtain the final weights of ECs considering customer requirements as well as other requirements of the manufacturers. Third, the ECs are categorized into different Kano attribute classes using fuzzy Kano’s questionnaire (FKQ) and fuzzy Kano’s mode (FKM) for evaluation of the PSS. In the last phase, non-linear programming is carried out to maximize the fulfillment levels of ECs. A case study is carried out to demonstrate the effectiveness of the developed optimal PSS planning approach.
Both the Product-Service System (PSS) literature and industry express a need to close the design loop by using product-in-use data to inform PSS Conceptual Design. Nevertheless, how to actually accomplish this is largely unknown. This research makes use of the literature as well as findings from interviews and case studies with industry as the basis for a framework which could utilise system-in-use (rather than just product-in-use) data from in-service records and receiver needs regarding the use of large, capital-intensive, technical assets to generate solutions which could aid the conception of PSS at the Conceptual Design stage.
A Product-Service System (PSS) is an integrated combination of products and services. This Western concept embraces a service-led competitive strategy, environmental sustainability, and the basis to differentiate from competitors who simply offer lower priced products. This paper aims to report the state-of-the-art of PSS research by presenting a clinical review of literature currently available on this topic. The literature is classified and the major outcomes of each study are addressed and analysed. On this basis, this paper defines the PSS concept, reports on its origin and features, gives examples of applications along with potential benefits and barriers to adoption, summarizes available tools and methodologies, and identifies future research challenges. © IMechE 2007.
This paper discusses the new Product-Service Systems (PSS) representation method which configures product and service elements. PSS is composed of a number of product elements and service elements, and they are complicatedly connected to each other to satisfy customer needs. Therefore, it is of much significance to appropriately represent product and service elements and their relations in PSS. In this paper, a new PSS representation scheme to effectively configure the product and service elements is proposed. In the proposed PSS representation scheme, the service elements can be modelled with stakeholders - service provider/receiver, activities and associated product elements. The product elements are included in the service element and serve as media for realizing PSS. To realize the specific function, several service elements can be connected with flows that were identified in PSS functional modelling. Those flows can also be used to connect associated product elements. Finally, case study is conducted to investigate the applicability of the proposed PSS representation method to the real PSS design project.
The management of new service development (NSD) has become an important competitive concern in many service industries. However, NSD remains among the least studied and understood topics in the service management literature. As a result, our current understanding of the critical resources and activities to develop new services is inadequate given NSD’s importance as a service competitiveness driver. Until recently, the generally accepted principle behind NSD was that “new services happen” rather than occurring through formal development processes. Recent efforts to address this debate have been inconclusive. Thus, additional research is needed to validate or discredit the belief that new services happen as a result of intuition, flair, and luck. Relying upon the general distinctions between research exploitation and exploration, this paper describes areas in NSD research that deserve further leveraging and refinement (i.e. exploitation) and identifies areas requiring discovery or new study (i.e. exploration). We discuss the critical substantive and research design issues facing NSD scholars such as defining new services, choice in focusing on the NSD process or performance (or both), and specification of unit of analysis. We also examine what can be exploited from the study of new product development to further understanding of NSD. Finally, we explore one important area for future NSD research exploration: the impact of the Internet on the design and development of services. We offer research opportunities and research challenges in the study of NSD throughout the paper.
The companies that benefits from the `go downstream' theory are presented. Managing downstream businesses requires looking at new variables such as profit per installed unit, share of customer's total downstream-activity spending and total customer return over the product life cycle. Manufacturer's cannot afford to ignore the opportunities that lie downstream, if they do, the next decade will decade will be even bleaker than the last.
Product-Service Systems (PSS) have recently been of central attention for effective provision of diverse values. In this paper, a methodological framework for PSS design is proposed based on functions and activities. The proposed PSS design framework includes the following six steps: requirement identification and value targeting, stakeholder activity design, PSS function modeling, function-activity mapping and PSS concept generation, PSS concept detailing and PSS concept prototyping. In the proposed PSS design framework, requirements and values of various stakeholders are identified via life-cycle step analysis, and the various activities of stakeholders are defined and their relationships are analyzed via service blueprint approach. In PSS function modeling, overall function of PSS fulfilling target values is defined with the specification of service providers and receivers. The decomposition approach is then applied to obtain sub-functions and sub-providers/receivers. Then, PSS concepts are generated via the mapping between activities and functions, and they are compared with the introduction of a modified service blueprint. Sample case studies are conducted to validate the proposed PSS design framework.
Product-Service System (PSS) Design is new trend in new product and service design. In this paper, the E3 concept composed of economical, ecological, and experience values is proposed so that the PSS concept design and evaluation can be conducted with E3 values viewpoints. Economical values include cost reduction and income enhancement which can be achieved by differentiation, market creation, customer acquisition and retention. Ecological values address the issues such as energy and water saving, dematerialization, reducing hazardous materials, reuse and recycling. Experience values deal with more people-oriented viewpoints including utilitarian and hedonic aspects. With the adoption of consumer value framework by Holbrook, extrinsic and intrinsic value dimension is used as the first classifier of experience value and other aspects of experience such as emotional, social, and epistemic are also considered. In conceptual design phase, E3 values can be used by mapping onto lifecycle steps to identify various stakeholders' requirements. Lifecycle steps and stages can be arranged with E3 value attributes in matrix form. By forced relationship analysis, stakeholders' requirements can be identified in systematic manner. During the evaluation phase, E3 values can be used to compare PSS concept with its alternatives. Based on the concept of E3 value, alternative solutions can be compared with each other and relative importance or perceived preference can be assessed during the concept evaluation phase. We demonstrate how E3 values are used during design phase with the PSS case of a meal assembly kitchen: how to incorporate E3 values in the divergent and convergent activities of PSS design is described.
'Product/service-systems' (PSS) are innovation strategies where instead of focusing on the value of selling physical products, one focuses on the value of the utility of products and services throughout the product's life period. This approach enables companies to provide customers with offerings that continuously deliver value and create a strong competitive advantage. PSS attempts to transcend the old industrial credo that value is embedded in products and the consideration of 'cost-quality-time' relates to the physical artefact. While there is increasing interest in PSS, limited research has been done in the design and development aspects of PSS. The objective of this paper is to explore how a global manufacturing company is developing an offering to their customers that is focused on the utility of their products throughout their life time. The paper describes the process of how a company is shifting from selling office furniture to selling the benefit of sustainable office workspace performance - measured in economic, social and environmental terms. By relating the customer's business performance to the activities associated with the use of office workspace the company may enhance the value of their products. This process of re-defining the value of what the company is actually offering to its customers is seen as a key element in PSS development. PSS development is expected to expand conventional product development in new directions, such as new activities, roles and responsibilities, knowledge and competencies, and value network relationships. The implications of this are discussed in relation to the company's development approach.
Manufacturing companies have traditionally focused their efforts on developing and producing physical products for the market. Currently, however, many companies are rethinking their business strategies, from selling products to providing services. In place of the product alone, the activity and knowledge associated with the use of the product is increasingly perceived to be the new design object. But how to organise the design of combined products and services, over expanded time domains and new stakeholder boundaries? The design research community is paying increasing attention to this new design object and research paradigm, studying service‐oriented approaches to product development and seeking to understand how to spell the systematic development of these so-called Product/Service‐SystemProduct/Service‐Systems (PSS). When considering the shift towards PSS in the domain of engineering, it is interesting to understand the shifting focus and identification of boundary conditionboundary conditions that manufacturing organisations must undergo, in order to develop just as systematic an approach to the service-related aspects of their business development, as they have in place for their product development. This chapter will attempt to map out some of the boundary conditions for PSS design research, in order to ensure that the phenomenon is successfully transformed into a well balanced design research field, including the necessary domains of expertise and research content to fully understand, develop and also communicate the field to industrial manufacturing companies.
Looking back over the last decade, the importance of an expanded understanding of engineering design has been shared within the engineering design community. Presented concepts and methods to support such expansion include Functional Product Development, Service Engineering, and Product/Service-Systems (PSS) design. This paper first explains PSS design as an expansion of engineering design, away from merely the physical product. Secondly, it gives a review of PSS research and a projection of future research issues, also ranging out into untraditional fields of research. Finally, it presents a new promising concept beyond PSS design; via an integrated development of technology and business model. This can be of particular interest for further research, especially due to its high freedom for designers and thus high potential for innovation.
By 2028 Rolls-Royce predict a civil after sales market opportunity of USD 550 billion and for military engines of USD 300 billion. Naturally, with this anticipated business Product Service Systems (PSS) have experienced a growth in interest by both industry and research. To achieve effective and profitable PSS, the Through Life Costs (TLC) of products/systems needs to be considered comprehensively. However, uncertainty in the estimation of future factors such as operation costs, level of maintenance and so on make this extremely challenging to estimate and model. The research introduced in this paper proposes that Game Theory might be of value for modeling the uncertainty in costs arising from conflict situations in the life cycle. Therewith, the decision making process can be modeled and so be made visible with its various implications. To introduce this proposed approach a review of the literature in PSS, TLC and uncertainty is summarized and then applied to this proposal. The results of preliminary and further work will be described.
Manufacturers are increasingly designing and creating integrated product-service systems (PSS) to improve customer satisfaction and take advantage of opportunities for product life cycle management, including improved upstream information flow to product design and manufacturing. Two PSS for clothes washing are compared in terms of life cycle economic and environmental impacts. The two PSS investigated are a laundry service and home-based clothes washing. It is shown that home-based washing has 1.5 times the environmental impact of a laundry service, due to increased materials use, while costs are reduced by about 85% due to elimination of labor and overhead. The comparison suggests that a more service-oriented PSS has less environmental impact and higher costs. Therefore, improvement efforts should be focused on reducing the labor content for high service PSS, and reducing the amount of material within product-oriented PSS. It was also found that service-oriented PSS can result in higher transportation impacts.
Service-oriented manufacturing is a new manufacturing paradigm and it has appeared in large-scale enterprise clusters over the past few years. In this situation, the increasing service demands from production processes have led to more enterprise collaborations. And the more collaborations among different enterprises have led to the generation of a service-oriented enterprise collaboration network. The purpose of this article is to investigate the clustering characteristics of a service-oriented enterprise collaboration network through an integrating analytic hierarchy process and complex network theory. First, the concept of service-oriented manufacturing is introduced and a logical architecture for implementing the modeling and analyzing of a service-oriented enterprise collaboration network is put forward. Then, the authors establish a topology model of a service-oriented enterprise collaboration network and use an analytic hierarchy process method to estimate the network weights among different manufacturing or service enterprises. Next, service-oriented manufacturing blocks are illustrated and an improved genetic algorithm is adopted to find the optimal blocks. To verify the feasibility and rationality of the proposed method, finally, a case study is presented. It is expected that a reasonable decision of cross-enterprise collaborations and layout would be provided in the present study.
Services-led competitive strategies are critically important to Western manufacturers. This paper contributes to our basic knowledge of such strategies by examining the enabling information and communication technologies that successfully servitized manufacturers appear to be adopting. Although these are preliminary findings from a longer-term research programme, through this paper we seek to offer immediate assistance to manufacturers who wish to understand how they might exploit the servitization movement.
The product–service system (PSS) is a system in which its integrated products and services jointly fulfill customer needs. The current research proposes a structured tool called the PSS Board to visualize the PSS process. This is a matrix board where the customer activities, state of the products, services, dedicated infrastructures, and partners are placed in rows, and the general PSS process steps are placed in columns. The visualized PSS on the board shows how the PSS provider and its partners aid customers' job execution process. Previous PSS cases are visualized based on the proposed PSS Board; the utility of the PSS Board is also identified. The current research can serve as an effective basis to analyze PSS from the perspective of fulfilling customer needs, thus supporting companies in diagnosing and elaborating their respective PSSs.
This paper proposes a new systematic methodology to schematically represent a Product-Service System (PSS) with product and service elements for effective PSS design. PSS consists of many product and service elements, which are innovatively connected with each other for satisfying customer needs. Therefore, in order to concretely realize a PSS concept, the detailed service and product elements should be properly defined, represented and configured. In this representation scheme, the service element contains service provider and receiver and their activities. In addition, several product elements are associated with a service element. These service elements and associated product elements are explored with the service blueprint method and PSS functional analysis. The concatenation of those many service and product elements is later conducted based on flows that are defined in the PSS function analysis. The case example is studied and it is demonstrated that this method can help to systematically identify critical service and product elements. In addition, alternative product elements and their configuration to be associated with same service element can be easily conceived and compared with the proposed methodology.
As consumers demand diverse values reflecting their individual needs and wants from various viewpoints, including economical, ecological and experiential concerns, more comprehensive and more flexible ways to provide values to consumers are desired. Product-Service Systems (PSS) have been proposed as a solution to realize such diverse value provision. In this paper, a systematic methodology for designing PSS based on activities and functions is proposed, which is much different from the case of product design. The proposed PSS design process includes the following six steps: requirement identification and value proposition, stakeholder activity design, PSS functional modeling, function-activity mapping and PSS concept generation, PSS concept detailing and PSS concept prototyping. In the proposed PSS design process, the activities of stakeholders are defined and analyzed via service blueprint. The functions of PSS fulfilling target values are then defined and represented with the specification service providers and service receivers, and they are further decomposed into sub-functions. Then the relationship between stakeholder activities and functions are established by considering associated stakeholders, and the PSS concepts are generated by mapping product and service elements. Sample case studies are conducted to validate the proposed PSS design process.
This paper addresses the increasing complexity of life-cycle thinking at the supply chain level. In order to reduce life-cycle environmental impacts the supply chain perspective needs to be extended to include management of stakeholders, who are traditionally not viewed as part of the supply chain. Stakeholder collaboration may positively affect the life-cycle environmental impacts and help develop innovative products and services for customers. The paper draws on results of an action research that creates several scenarios for providing the service of power tools and garden equipment to households. The scenarios are based on data from a household survey, interviews with relevant actors and stakeholder workshops, during which the scenarios were evaluated. Life-cycle environmental impacts of the developed scenarios are estimated, as well as the costs for consumers. The roles of various actors in the system of service provision are discussed. Suggestions are provided for how the common goal of value delivery to final customers may potentially reduce life-cycle environmental impacts and what barriers exist for various actors to actively participate in such a system.
Integration of products and services has been receiving increased attention from both practice and academia, but there is no common systematic framework that can accommodate various concepts. In response, this paper first defines an umbrella term, ''integrated product-service'' (IPS), that encompasses all related concepts. An extensive literature review is conducted, allowing the production of a taxonomy of IPS, called the IPS dichotomy. As a typology of IPS, the IPS cube, comprising eight cells, is also proposed along with practical examples. This paper is expected to lay a foundation for further advances in the field of integration of products and services.
Looking back over the last decade, the importance of an expanded understanding of engineering design has been shared within the engineering design community. Presented concepts and methods to support such expansion include Functional Product Development, Service Engineering, and Product/Service-Systems (PSS) design. This paper first explains PSS design as a type of an expansion of the engineering design of a physical product. Secondly, it gives a review of PSS research and a projection of future research issues, also ranging out into untraditional fields of research. Finally, it presents a new promising concept beyond PSS design; via an integrated development of technology and business model. This can be of particular interest for further research, especially due to its high freedom for designers.
The past two decades have seen increasing efforts to consider the potential negative effects of products’ manufacture, use and disposal on the local and global environment (Ehrenfeld, 2001). Over this time efforts have been made to relate the goals and ideals of sustainability to the domain of product development, thus adding new dimensions, such as social and moral values, to the original agenda of environmental improvement. The redefinition of the role of the product developer, from environmentally conscious product developer to sustainably aware product developer has led to new insights into the way in which products are developed and used – and to where environmental effects occur in the lifetime of a product. The product developer has thus a more complex role in relation to sustainability, as the focus for improvement of a product may not (and very often does not) lie in the physical artefactual ingredients of the product or the processes used to create it. Rather, the focus for improvement of a product’s environmental performance most often lies in the manner in which the product is used and consumed. A product’s use phase is often environmentally significant, as this is the largest source of environmental impact. A product’s consumption, or rather, a given user’s consumption behaviour is even more important, as this dictates exactly how many use-phases, how many products and how much product redundancy is created, due to the user’s lack of awareness, motivation or ability to consume a product in an environmentally respectful manner (McAloone, 2005). The problem with both use and consumption is that the product developer traditionally has very little power over these two elements; they occur after the product has left the factory and entered into the hands of the user (the consumer). Until the real environmentally harmful phases of a product’s life can be harnessed by the producing company, it is often impossible to make the radical (Factor X) environmental improvements to the product itself that are necessary to maintain an environmental equilibrium (e.g. Rejnders, 1998).
This paper introduces a tool for conceptualising in the development of product/servicesystems (PSS), based upon the modelling of service activities. Our argumentation is built on two previous articles by the same author, previously presented at the 16. Symposium “Design for X” [1] and the 9th International Design Conference [2]. In this contribution, we take the step from a fundamental understanding of the phenomenon to creating a normative exploitation of this understanding for PSS concept development. The developed modelling technique is based on the Customer Activity Cycle (CAC) model by Vandermerwe [3]. Our subsequent development and tailoring of this model has been carried out in repeated applications (and evolution) via a number of projects conducted by Design & Innovation (D&I) engineering students at The Technical University of Denmark (DTU). The documentation of these projects, foremost a recent project in the shipbuilding industry [4], represent the main data source for this paper. The resulting Activity Modelling Cycle (AMC) model has been refined and changed in order to address many of the issues identified as central for PSS development. The model has been found to support the integrated consideration of the customers’ activities, possible PSS offerings and beneficial partnering options (i.e. between different supplier companies) within the delivery value chain.
This book considers two main questions: how do system innovations or transitions come about and how can they be influenced by different actors, in particular by governments. The authors identify the theories which can be used to conceptualise the dynamics of system innovations and discuss the weaknesses in these theories. They also look at the lessons which can be learned from historical examples of transitions, and highlight the instruments and policy tools which can be used to stimulate future system innovations towards sustainability. The expert contributors address these questions using insights from a variety of different disciplines including innovation studies, evolutionary economics, the sociology of technology, environmental analysis and governance studies. The book concludes with an extensive summary of the results and practical suggestions for future research.
This research aims at suggesting a novel approach to creating promising product-service system (PSS) concepts by resolving contradictions between product and service components. In order to resolve these interference problems, theory of inventive problem solving (TRIZ) method is applied and the suitability of this method for PSS is evaluated by applying the 40 inventive principles in TRIZ method to PSS cases among Fortune Global 500 companies. In addition, quality function deployment is adopted to identify the critical features of products and services. By applying the suggested approach to a car sharing service, a representative automobile PSS, its practicability and utility are verified.
In the past, there has been a lot of research on Product-Service Systems (PSS) – integrated bundles of products and services. However, the topic has been basically independently discussed by researchers of different disciplines. The purpose of this paper is to integrate the results of the fields of Information Systems, Business Management, and Engineering & Design and hence to investigate the state-of-the-art in PSS research by conducting a structured literature review. In total 265 articles have been intensively analyzed. A unified core definition of the PSS term is derived as well as the notion of the concept in the three disciplines is explained and summarized. A meta-analysis of previous literature reviews completes the picture. Based on our data it is shown that the understanding of PSS is very different in the three disciplines. Therefore, a research agenda for future research is developed which includes for example the need for clarifying the terminology, changing perspectives, and conducting more evaluations.
There is widespread concern that the ‘economy is crashing against the Earth’, already causing problems in terms of climate change, water depletion and loss of biodiversity. Yet, the global economy still will have to grow two- to four-fold to provide all future global inhabitants with the average yearly income of $10,000 that is needed to have a reasonable life expectancy and human development index. Rio+20 was intended to reconcile the need for poverty eradication with a green economy, but had limited perceived success. This paper analyses how some of the major international sustainability programs that contributed to Rio+20 could have supported a more far-reaching outcome. Two problems are identified: the programs showed significant overlap, and the programs themselves were often incremental in nature, seeking compromises and avoiding more radical approaches such as the ‘degrowth agenda’. To address the first problem, we suggest how a natural process of mutual collaboration, learning and strengthening could occur: the UN Green Economy Initiative could focus on providing the socio-economic rationale for sustainability; bodies like the IPCC and the UNEP Resources Panel could focus on providing the environmental rationale and planetary limits related to sustainability; programs in the field of sustainable consumption and production as well as resource-efficient and cleaner production could focus on providing hands-on support and proof of how to change direction. There seems no clear-cut answer for the second problem. Some authors suggest relying more on action outside formal policy systems that, by nature, seek compromises. However, they also see a required role for government action, which is exactly what Rio+20 and its supportive policy programs failed to achieve and negotiate.
Due to customers’ constantly increasing demand for personalized products and services, manufacturing enterprises must provide more diverse physical products and services in the product sale stage. However, the massive diversity of personalized products and services offered leads to the internal diversification of products and services, which greatly increases production costs. The application of the modular method can effectively improve the reusability of a product or service, and reduce internal diversification of the product and service. In this paper, the interactive modular design process is established by the analysis of the relationship between a product or service of integrated service product (ISP) and the analysis of the physical module and service module. This paper deals with the module partition principle of ISP, puts forward the three-stages module partition processes and methods, mainly including service module partition processes based on the “Top-Down” and “Bottom-Up” methods, the physical module partition process based on the “Top-Down”, and the module partition methods based on Quality Function Deployment and mapping matrix. Finally, a case study is done on an electric power transformer using proposed principle and methods, and the processes and methods can achieve the interactive module partition of ISP.
Compared to product design, a broader range of knowledge is required to Product-Service System (PSS) design, since both products and services are included in its design space. In this paper, a method for knowledge-based PSS design support is proposed. The proposed method is on the basis of the research on Japanese Service Engineering, which provides design methodology of the integrated provision of products and services. In addition, a prototype of computer-aided design (CAD) system to realize knowledge-based PSS design support is developed. The method and system support the acquisition of new PSS design solutions by integrating knowledge accumulated in a knowledge base. The developed system was applied to a design of an actual service: an accommodation service in Japan. The application result showed that the developed system was useful to support a design of the integrated provision of products and services.
Traditional outsourcing literature has claimed gains for the customer in terms of quality and costs. However, such gains are illusory in outsourcing of high-risk, complex tasks. The use of contracts and governance mechanisms for handling complex procurements is essential in obtaining rewards from outsourcing. Powerful incentives and risks are normally used in industrial service contracts to transfer risks to measure compliance with performance measures. The availability contracts for complex engineering services provision are forms of outsourcing contracts that transfer resources from government to external service providers on a substantial scale. The change moves the contractor role from creating resources to managing resources. Such role change mandates collaboration with customers and suppliers in supply/value chains. The management task is then perceived in terms of linking and optimising alignments rather than increasing service levels. Incentive design is one mechanism for linking the coordination of resources required in availability contracting to the business model. This article studies the impacts of agreed contract type and incentive mechanism on the customer and service provider profits using agent-based discrete event simulation model under multiple risk sharing scenarios.
As a means for providing the sustainable production and consumption, the concept of product-service system (PSS) has received increasing attention. What is at the core in the PSS is the design, since it determines the distinctive characteristics and quality of PSS. Even though some tools have been suggested for PSS design, previous tools mainly focus on identifying the relationship between actors in a conceptual level. Despite the fact that it is significant and cannot be neglected, what is more important in a practical situation is to represent the detailed flow or relationship of PSS elements, with the consideration of products and services. In response, this paper proposes a ‘‘product-service blueprint’ which is a new and systematic way to elucidate the relationship between products and services, providing the implication of how PSS can provide the sustainable production and consumption. Employing the service blueprint as a starting point, new areas, lines, and symbols are introduced to represent the distinctive features of PSS. The proposed product-service blueprint represents the product use throughout the life cycle, service flow from the management to the customer, and the relationship between products and services. Taken together, the product-service blueprint will help both managers and researchers to promote the product-service integration under the concrete framework.
Today, since a single product is no longer sufficient to cope with the dynamic market environment, firms are trying to provide the integrated offering of products and services. However, despite the importance and utility of product–service integration, a limited approach has been conducted regarding the planning of the strategic management of integrated offering. To deal with this issue, this paper firstly suggests the concept and typology of technological interface in product–service integration. Based on the technological interface, a generic structure of product–service integrated roadmap is developed. Extended from the generic structure, this paper finally proposes the typological configurations of integrated roadmap according to the technological interface and investigates the usage, characteristics, and roadmapping processes.
The design and development of a Product–Service System (PSS) raises new issues since the service component introduces further requirements than traditional product engineering. Compared to physical products, services are generally under-designed and inefficiently developed. For this reason, approaches such as New Service Development, Service Design and Service Engineering have emerged during the years to support the design and development of service either as a system itself or as a constituting element of a Product–Service System. However, only Service Engineering investigates service design and development with a systematic perspective and with a seamless integration of product and service contents. The purpose of this paper is to provide a holistic conceptualisation and an up-to-date review of the literature on Service Engineering with a specific focus on its adoption in the PSS context. A critical analysis is also performed with the aim to define a research agenda and the most prominent key actions that could give directions for future research.
The concept of Product–Service System (PSS) prevails as a systemic approach for enabling a strategic and managerial transition from selling physical goods to providing product–service solutions that fulfil customer-specific and changeable needs. Besides the potential strategic and economic relevance, many companies do not know how to provide a PSS in an effective way and often incur in high costs without any expected return.
In this context, it is becoming relevant to engineer PSS solutions envisioning and encompassing their whole lifecycle. For this purpose, it is necessary to rely on a well-framed PSS engineering process. The contribution of this paper is mainly addressed to understand which are the main characteristics (how) and the structure and sequence of the phases (what order) characterising a PSS engineering process model. The paper reports two case studies which provide the baseline for the identification of good practices and of a reference process model for PSS engineering.