Article

Extended responsibility through servitization in PSS: An exploratory study of used-clothing sector

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Abstract

Purpose The global textile-fashion industry is resource inefficient thus requiring higher product-service systems (PSS) intervention. Further, insight of how PSS extends corporate responsibility is rather limited; knowledge of which may contribute towards increased PSS viability. The paper explores how companies operating with used-clothing PSS extend their responsibilities through servitization. Design/methodology/approach An exploratory study of seven companies operating with various used-clothing PSS is conducted through semi-structured interviews and supplementary document studies. Findings Six dominant ways through which servitization drives responsibility in used-clothing PSS are identified. These are through: value-adding services, product leverage, collaborative partnership, information transparency, awareness and platform-enabled networking. Two trade-offs exist in terms of their focus on physical process or digitalization, and developed by honing core competency or collaborative partnership. Further three differentiating attributes underlie these mechanisms for: raising awareness and/or improving transparency, collaboration in value creation and/or in promoting consumption, and product ownership and/or leverage. Research limitations/implications A wide range of used-clothing PSS exists each in its own way extending responsibility. In-depth studies are required to investigate the relationship between servitization and extended responsibility for diverse PSS-types and on type of responsibilities they address. Practical implications By identifying the key mechanisms or ways and their underlying characteristics companies can identify new servitization forms and ways to extend their responsibility, identify best practices and establish viability beyond the traditional measures, e.g. financial. Originality/value So far no studies have investigated the role of servitization in PSS and how it extends corporate responsibility, especially in industries like textile-fashion, where both resource efficiency and responsibility is low.

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... Consumers are more willing to consume sustainably because of the increasing awareness of the ready-to-wear industry's detrimental environmental impacts (McQueen et al., 2022). As a product-focused and resource-intensive sector, ready-to-wear is a relevant industry for servitization solutions, and companies are increasingly offering product-service bundles (Corvellec and Stål, 2017;Pal, 2016). Clothing product-service systems that include maintenance and repair can be a sustainable business opportunity that increases product longevity and reduces demand for new purchases, which will, in turn, slow down the resource flow and reduce overall environmental damage (Armstrong et al., 2015;Pal and Gander, 2018;Larsson et al., 2019;Dissanayake and Weerasinghe, 2021;McQueen et al., 2022). ...
... Servitization research consists of main research streams such as operations management, services marketing and systems engineering and has mainly focused on the servitization of manufacturing, product-service differentiation, customer relationships and competitive strategy; however, studies on the retail ready-to-wear sector are scarce (Lightfoot et al., 2013;Narvaiza et al., 2016;Pal, 2016;Corvellec and Stål, 2017;Raddats et al., 2019;Ricchiardi and Bugnotto, 2019;Won and Kim, 2020;Dissanayake and Weerasinghe, 2021). The literature that examines consumer behavior regarding clothing longevity and repair is newly emerging (McNeill et al., 2020;McQueen et al., 2022). ...
... Many sustainable business models cannot become the standard in the ready-to-wear industry because of incompatibility with customer expectations (Pal and Gander, 2018). The transformation of fashion consumption into services changes the value model, and its implications vary according to consumers' personal differences and perceptions; thus, understanding the impact of servitization on consumer perceptions and examining consumers' purchase and recommendation intentions is crucial in the ready-to-wear industry (Pal, 2016;Ricchiardi and Bugnotto, 2019). That requires considering consumer traits and their impact on consumer perceptions. ...
Article
Purpose This study examines the impact of servitization in the form of repair and maintenance services on consumers' quality perceptions, purchase intentions and recommendation intentions while considering consumer frugality as a moderator in the retail ready-to-wear sector. Design/methodology/approach A quantitative approach based on consumer research was pursued. Study 1 tested the research model using a fictitious ready-to-wear brand within an experimental design. To increase the generalizability of results, Study 2 retested the model with a well-known ready-to-wear brand. For both studies, regression, mediation and moderation analyses were conducted in SPSS. Findings Both studies showed that servitization positively influences perceived quality. Servitization positively affects purchase intentions and recommendation intentions indirectly via the mediating role of perceived quality. Frugality moderates the relationship between servitization and perceived quality for the fictitious brand (Study 1), whereas it is not significant for a well-known ready-to-wear brand (Study 2). Servitization positively influences perceived quality regardless of consumers' frugality levels for a stronger brand. Originality/value This study suggests and tests an original conceptual model that relies on signaling theory. It is among the first studies to examine the impact of servitization on retail fashion consumers' quality perceptions and consequent purchase and recommendation intentions. This study also contributes to the literature by presenting empirical findings based on consumer research on servitization while considering frugality as a moderator. Practical implications Bundling products with additional services can contribute to quality perceptions and consequently to purchase and recommendation intentions for ready-to-wear brands.
... Limited studies are dedicated to developing typologies for CFC practices and studying their sustainability potentials (e.g. Armstrong and Lang, 2013;Pal, 2015Pal, , 2016Kotzlowski et al., 2018). Armstrong and Lang (2013) highlight that CFC models, more specifically PSSs, have the potential to decrease the reliance on material resources, diminish waste, and increase consumer satisfaction, by providing services that foster utilisation. ...
... Armstrong and Lang (2013) highlight that CFC models, more specifically PSSs, have the potential to decrease the reliance on material resources, diminish waste, and increase consumer satisfaction, by providing services that foster utilisation. Pal (2016) concurs highlighting that servitization drives responsibility in used-clothing PSS and can be further enhanced through value-adding services, product leverage, collaborative partnership, information transparency, awareness, and platform-enabled networking. ...
... Thus, the role of the 'user' is extended from solely being someone who consumes (obtains), to also becoming a 'provider' (Matthews and Hodges, 2016;Henninger et al., 2019;Philip et al., 2019). Pal (2016) and Tunn et al. (2018) insist that uptake and participation could be enhanced by developing: 1) a resource use strategy (e.g. improving transparency, collaboration), 2) objectives for consumption levels, 3) co-creating mechanisms, and 4) a financially viable framework for businesses that benefit both companies and consumers. ...
Article
Collaborative consumption in the fashion industry has been put forward as a way to overcome current challenges of the ‘take-make-use-dispose’ economic system that is currently dominating the market, and has gained interest from practitioners, academics, and policy-makers. The purpose of this paper is to explore the state of collaborative fashion consumption research across various disciplines by critically reviewing and synthesizing this fragmented body of work. To do so, this systematic literature review critically evaluates where, how, and what research has been conducted on collaborative consumption in the fashion context, by further outlining gaps and a future research agenda. The paper reviews publications between 2004 and 2020 within peer-reviewed journals written in English, focusing on product service systems, access-based consumption, and collaborative consumption as key words. The analysis demonstrates that scholarly work addresses issues of terminology, attitudes, and motivations, specific modalities of engagement and practices of use and disposal, as well as business models that can help facilitate collaborative fashion consumption. The review also highlights that various gaps remain that require further enquiries, arguing that a deeper and more critical research agenda is required in order to provide a coherent terminology, better understand motivations to uptake collaborative consumption practices, as well as more cross-country analysis.
... Nowadays, the activities of this industry take place in dynamic and complex supply chains (SCs) with many production steps that hinder visibility beyond direct suppliers (Pedersen and Andersen, 2015), move sustainability risks and their management from the corporate to the SC level. Sustainable chain management (SSCM) comes into the game (Khurana and Ricchetti, 2016) mobilising fashion researchers and practitioners towards the search of radical solutions for SC sustainability (Business of Fashion (BOF) and McKinsey, 2019;Pal, 2016;Pal et al., 2019). ...
... Regarding the virtuous cycle, our findings come to extend and structure what was already observed by Pal (2016) when referring to the "information transparency" mechanism for extended responsibility through servitisation. In his work, Pal illustrates how the SSCM decision of participating in a used-clothing product service system brings not only the more direct sustainability (mainly environmental) benefits, but also reinforces other SSCM mechanisms as deeper interaction with SC partners and collaborative decision-making (Pal, 2016). ...
... Regarding the virtuous cycle, our findings come to extend and structure what was already observed by Pal (2016) when referring to the "information transparency" mechanism for extended responsibility through servitisation. In his work, Pal illustrates how the SSCM decision of participating in a used-clothing product service system brings not only the more direct sustainability (mainly environmental) benefits, but also reinforces other SSCM mechanisms as deeper interaction with SC partners and collaborative decision-making (Pal, 2016). This would consequently result in better in-store collections and enhanced customer service (thus improving the economic and social dimensions) (Pal, 2016). ...
Article
Purpose – The relationship between sustainability, traceability and transparency in the fashion-apparel industry, characterised by complex, labour-intensive and geographically dispersed supply chains (SCs), needs further clarification. The first goal of this study is to revise, refine and adapt to the scope of this industry, the conceptualisation of traceability and transparency and their interrelations with sustainability. The second goal is to uncover the key elements responsible for fostering and hindering their relationship in the fashion-apparel practice. Design/methodology/approach – A Delphi study with fourteen experts representing key stakeholders in the entire fashion-apparel SC was carried out. Findings – Operational definitions for and clear boundaries amongst sustainability, traceability and transparency are identified, and a relational model including stakeholder groups and roles, drivers and barriers is developed. Traceability, defined as an ability, together with transparency, conceptualised as an internal decision and assisted (inter alia) by cross-sector collaboration are found to be necessary but not sufficient conditions to achieve SC sustainability, which is conceived as an outcome. Originality/value – The work adapts concepts from the sustainable supply chain management (SSCM) literature to the particular fashion-apparel context, incorporating the practical vision and nuances of all the key stakeholder groups and highlighting the mutually reinforcing relationship among traceability, transparency and cross-sector collaboration for effective SSCM in the fashion-apparel industry.
... The phenomenon of clothing underutilisation is incentivised by the high availability, affordability, as well as the low quality of garments produced in the fast fashion segment. The fast fashion operating model is the industry predominant, characterized by short lifecycle, trend-based designs, frequent replenishment, and large-scale production (Pal 2016). ...
... (2) complete product leverage for extending physical responsibility; (3) collaborative partnership for extending financial responsibility; (4) information transparency for extending informative responsibility; (5) raising awareness for extending informative responsibility; and (6) platform-enabled networking for extending informative responsibility (Pal 2016). The mechanisms transfer ownership and risk from the customer to the actors upstre-ile est model Carbon footprint and scarcity-weighted water use of the Swedish apparel sector over one year (Roos et al. 2016) 14 feasibility of servitization am in the value chain (Pal 2016), such as producers and retailers. ...
... (2) complete product leverage for extending physical responsibility; (3) collaborative partnership for extending financial responsibility; (4) information transparency for extending informative responsibility; (5) raising awareness for extending informative responsibility; and (6) platform-enabled networking for extending informative responsibility (Pal 2016). The mechanisms transfer ownership and risk from the customer to the actors upstre-ile est model Carbon footprint and scarcity-weighted water use of the Swedish apparel sector over one year (Roos et al. 2016) 14 feasibility of servitization am in the value chain (Pal 2016), such as producers and retailers. Creating circularity through servitization in the textile and fashion industry business models addresses the clothing underutilisation. ...
... For example, Armstrong et al. (2015) conducted focus groups to uncover consumers' preferences and perceptions about eight clothing PSS features. Pal (2016) carried out semi-structured interviews and supplementary document studies to explore the underlying characteristics of preowned clothing PSS. Pedersen and Netter (2015) conducted semi-structured interviews to identify the opportunities and barriers of fashion libraries. ...
... For Model 1, the sale of redesigned clothing (M1), consumers are encouraged to purchase clothing that has been redesigned or repurposed from old clothing items. Redesigned clothing can be considered a form of upcycling and yield profits from transforming underused products into something useful and valuable ( Janigo and Wu, 2015;Pal, 2016), which gives old clothing a second life. For instance, the online store etsy.com ...
... Repairing may include darning a rip or tear, reinforcing a ruptured seam, replacing a broken zipper, reattaching a button and so on. Alteration entails adjusting the length or the fit of a garment ( Janigo and Wu, 2015;Pal, 2016). Some existing clothing repair/alteration retailers include Angies list and SewNeau. ...
Article
Purpose The purpose of this paper is to identify whether fashion leadership is an obstacle or catalyst to consumers’ purchasing intention in sustainable clothing product-service systems (CPSS), which include sale of redesigned clothing, clothing repair/alteration service, clothing renting, clothing swapping and style consultancy service. Design/methodology/approach The present study examined the causal relationship between fashion leadership and intentions to engage in CPSS. By applying the theory of planned behavior (TPB), this study also considered self-interest and social values in consumers’ intention to adopt CPSS. A series of multiple regression analyses and structural equation modeling were conducted on data collected from 431 females in the USA through an online survey. Findings A significantly positive influence of fashion leadership on consumers’ intention to engage in each CPSS retail model was found; and demographics, including age, income and education have moderating influences on these relationships. Furthermore, the results also confirmed positive relationships between fashion leadership with attitude and subjective norms as well as overall intention to adopt CPSS. Several implications related to the present study were discussed. Originality/value This study is the first of its kind in several aspects; first, affirming the argument that fashion need not contradict sustainability; second, extending TPB model by adopting fashion leadership as the external factor; third, providing new CPSS retail models advocating less material consumption by increasing product longevity and utilizing intangible services. Current studies mainly focus on the synthesis of general benefits of product-service systems (PSS) and how PSS are operated. Existing studies on CPSS primarily focus on consumer preferences and motivations in only a few exploratory qualitative studies. This is the first time that a quantitative study has been conducted to determine the interrelationship between the individual personal characteristic, fashion leadership and the intention to adopt PSS in the clothing industry.
... Within this framework, servitisation is recognised as a lever to improve resource efficiency and create positive environmental effects for society (Mont & Tukker, 2006;Tukker, 2015). Product-Service Systems (PSSs) are acknowledged as effective enablers for implementing circular economy processes through a better use of resources (Roy, Shehab & Tiwari, 2009;Vezzoli & Manzini, 2008;Tukker & Tischner, 2006) and positively influencing the extension of corporate responsibility (Pal, 2016). Servitisation processes generate new revenue streams, achieve new competitive advantages (Baines et al., 2009), and increase consumer awareness (Vezzoli et al., 2015). ...
... Retail and the services offered in the sales and after-sales phases of the fashion product, especially in recent years, appear to be a promising and relevant setting for taking action in this direction and promoting behavioural change through informative, educational and collaborative design actions that can engage the consumer positively through the implementation of specifically targeted Product-Service Systems (PSSs) (Pal, 2016;Tukker, 2015). ...
Article
Full-text available
Due to the growing environmental impact of the fashion industry, the demand for sustainable consumption is currently an urgent issue. The exponential increase of textile waste and the progressive reduction of product lifespan call for a shift to circular models, and in this context, consumer awareness has also become crucial. The retail environment, driven by an increasing shift towards a servitisation of the consumer experience, with its associated Product-Service Systems (PSSs), can provide a compelling opportunity to nurture consumer awareness, thus acting as a proactive mechanism to induce more responsible and sustainable behaviour. Within this framework, retail design is emerging as a key driver for sustainable behavioural changes in fashion consumption. This article, therefore, reflects on how fashion brands are actively orchestrating strategies within retail, defining dedicated PPSs to promote responsible consumption practices involving informative content, empowerment tools and co-creation initiatives that, going beyond awareness, can evolve into advocacy.
... In a context within which the promotion of collaborative approaches to the fashion supply chain becomes increasingly relevant from the perspective of sustainability (Iran & Schrader, 2017) and business responsibility (Pal, 2016), the adoption of a business perspective is aimed at identifying and analysing how different approaches to the second-hand market create value within the system of the involved stakeholders (Zott & Amit, 2010). A collaborative approach to value creation is linked to the ability to activate partnerships and cross-stakeholder interactions to co-create services and generate added value for both the object of exchange and the actors involved. ...
... Several studies investigate the positive impact that the servitisation of the fashion industry, and the consequent push towards collaborative and more responsible consumption models, could have in terms of reducing resource use, tackling waste, and enhancing awareness and responsibility on behalf of both consumer and business communities (Tukker, 2015;Vezzoli et al., 2015). Within this framework, two parallel and converging drivers can be identified that are stimulating and supporting a shift towards more sustainable and responsible consumption practices: on the one hand, consumer awareness driving him/her to search for alternative consumption models guided both by awareness of the impact of mass production on the environment and by the ethical rejection of the traditional production chain (Guiot & Roux, 2010;Machado et al., 2019); on the other hand, the adoption of corporate policies that promote environmental, economic and social sustainability strategies, actions and projects aimed at all stakeholders in the supply chain within Corporate Social Responsibility agendas (Pal, 2016;Thorisdottir & Johannsdottir, 2020). ...
Conference Paper
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The second-hand market has been in the spotlight when it comes to circular and collaborative fashion studies. Resale service dynamics and designs have been reinvented over time, currently influenced by consumer demands and their new ways of thinking about the fashion industry. Within this context, this paper aims to draw an up-to-date mapping of current second-hand practices in the fashion sector in the Brazilian context. Through a proposed model - an interpretative framework for PSSs in fashion second-hand market - three different clusters (thrift shops, digital marketplaces, and virtual social communities) were identified, mapped and analysed, representing three different approaches to the servitisation of the sector by establishing variable relations and connections between the ecosystem actors: territories, communities and companies.
... In recent years, there has been a growth in alternatives, such as second-hand platforms to replace personal ownership with utilisation options (Strähle, 2018;Gyde and McNeill, 2021). Whilst these remain small in relative terms, with ethical sustainable fashion market worth $6.35bn (The Business Research Company, 2020) compared to $1.78tr global fashion market (Business Wire, 2021), there is evidence to suggest growth in the sharing economy because of increased consumer awareness (Hamari and Ukkonen, 2013;Pal, 2016;Mont et al., 2019;Mukendi and Henninger, 2020). Like second-hand consumption, circular and sharing initiatives, such as rental clothing schemes, also replace personal ownership with increased utilisation of products. ...
... Mukendi and Henninger (2020) established that sustainability played a large role in motivating consumers to participate in rental. To support this, environmental factors, including reducing waste, extending garments life and decreasing reliance on resources are found important (Armstrong et al, 2015;Pal, 2016). However, despite an increase in awareness in recent years, Park and Joyner-Armstrong (2019) reported that actual users of apparel renting do not engage in collaborative consumption to practice sustainable consumption or support the environment, suggesting a need for more synonymous research. ...
... Only one study has considered sportswear-related PSS scenarios for Houdini, a sportswear manufacturing company (Holtström et al., 2019). Moreover, in five studies (Armstrong et al., 2015;Armstrong et al., 2016;Holtström et al., 2019;Johnson & Plepys, 2021;Lang & Armstrong, 2018) consumers were interviewed from developed economies like the United States, Finland, and Sweden, whereas, in two studies (Pal, 2016;Stål & Jansson, 2017), the PSS providers were The focus in the maintenance and repair related scenarios was to sell F I G U R E 1 Product-service system (adapted from Tukker, 2004 ...
... Five studies suggested customers' involvement in the design of their clothes. This involvement can be in the form of customers going to stores and assembling different parts (Armstrong et al., 2015) or using online configurators and technology (Pal, 2016). Here, the focus is on product longevity through customer attachment to the product. ...
Article
The existing footwear ecosystem is not environmentally friendly and thus poses a threat to sustainability. In this article, our objective is to take a product‐service systems approach to propose alternative footwear consumption scenarios from a sustainability viewpoint and investigate the perspective of Indian consumers toward the proposed scenarios. To this end, we initially conducted a comprehensive literature review to explore alternative consumption scenarios in the realm of fashion products. This step led to the development of 10 alternative footwear consumption scenarios that focus on maintenance and repair, takeback, assembly, customization, personalization, advice and consultancy, rent, sequential share, swap, and functionality. Next, we adopted the focus group interview methodology to investigate the perception of Indian consumers toward the 10 alternative footwear consumption scenarios, which can inform the footwear industry's product development, marketing strategies, and sustainability initiatives. Our results indicate that while the participants found the consumption scenarios to be interesting and practical, they feel that the proposed scenarios may prove to be more feasible for comparatively expensive footwear products because of the associated logistics costs. Furthermore, the participants pointed out a few cultural as well as hygiene‐related issues that may hinder the adoption of certain alternative footwear consumption scenarios.
... Another way to avoid acquiring and disposing of clothing is by prolonging the life of a garment through clothes care (Norum, 2013). This refers to laundry knowledge, i.e. knowledge about right water temperatures, detergents, frequency of washing and line drying, but also mending skills including repairing, altering or redesigning Durrani, 2018;Janigo and Wu, 2015;Laitala and Klepp, 2018;Lang et al., 2016;Lapolla and Sanders, 2015;Middleton, 2015;Norum, 2013;Pal, 2016;Twigger Holroyd, 2016). Mending can mean for example replacing a zipper or a seam, altering the size of a garment or making something completely new from old clothing. ...
... Other concepts that represent the category of design for longevity are Make it Yourself toolkits, referring to kits containing materials and tools to make and personalise a garment, as well as customised, participatory design, referring to building a garment by selecting clothing components or working with a designer to create a one-of-a-kind garment . These two strategies can also be seen as product-service systems (PSS) Lang and Armstrong, 2018b;Pal, 2016Pal, , 2017Pal and Gander, 2018;Str€ ahle and Erhardt, 2017;Stål and Jansson, 2017). By combining products with services, PSS aim at making the products more valuable to the consumer, extending garments' lifespan and thereby reducing consumption . ...
Article
Full-text available
The fashion system constitutes one of the most unsustainable industries. In response, the majority of the sustainability research has concentrated on finding ways to boost acquisition of greener products, whereas more recent research has regarded anti-consumption as the pathway to sustainable consumption. However, there appears to be a conceptual ambiguity in the relationship between the constructs of sustainable consumption and anti-consumption. In addition, it is unclear which phases of consumption – acquisition, usage and/or disposal – are to be opposed when one opposes consumption. To clarify these ambiguities, a systematic literature review of the concepts relating to sustainable anti-consumption of clothing is conducted. In the review, 58 papers are identified and analysed to construct a relational framework of the concepts manifesting anti-consumption of clothing from an environmental sustainability perspective, and with respect to the cycle of consumption. The analysis shows that the multitude of overlapping concepts aim at decreasing either acquisition or disposal, but are not against usage. On the contrary, the analysis emphasises how by intensifying and prolonging the usage, it is possible to decrease acquiring and disposing of clothing, and slow down the cycle of fashion. In this way, the current research constructs conceptual and societal contributions that highlight clearer guidelines for consumers to redirect their behaviour and to companies to develop their business models in a way that releases usage from the negative connotations of consumption.
... Several challenges currently hinder fashion remanufacturing in reaching an industrial scale and in reaping the real benefits (Pal, 2016;Dissanayake and Sinha, 2015;Sinha et al., 2009). These are related to: ...
... The concept of servitization, defined as the ability to better create mutual value through a shift from selling products to selling product service systems (Baines et al., 2009) is also described as having the potential to improve resource efficiency and decrease the environmental impact. This, as previous research by Tukker and Tischner (2006) points out, makes it a feasible solution for the highly resource inefficient global textilefashion industry (Pal 2016). It is also indicated that servitization could generate an improved revenue stream thus creating a competitive advantage increasing firm value. ...
... The empirical papers were mainly from industries related to manufacturing, such as capital equipment, defence, or household appliances. Nevertheless, a growing number of publications focussed on lower value product industries, such as textiles (Corvellec and Stål, 2017;Pal, 2016 Table III. Descriptive analysis of the literature review PSS papers were also differentiated based on the type of PSS. ...
... Two cases mentioned remanufacturing of products and components, which were implemented to facilitate spare-part provision and to rejuvenate the employed equipment (Colen and Lambrecht, 2013;Sundin et al., 2009). Recycling activities were only mentioned in cases of textile PSS, in which H&M and other companies implemented take-back schemes for clothes to either use them to produce lower value textiles or give them to charity (Corvellec and Stål, 2017;Pal, 2016). One case mentioned training activities to increase resource efficient product use (Chakkol et al., 2014). ...
Article
Purpose The purpose of this paper is to test the link between servitisation and circular economy by synthesising the effect of product-service systems (PSS) on supply chain circularity (SCC). Design/methodology/approach Following a systematic literature review methodology, the study identified 67 studies and synthesised them using content analysis. Findings A conceptual model is developed illustrating how PSS business models impact SCC through increased product longevity, closure of resource loops and resource efficiency. It also identifies six contextual factors affecting the implementation of SCC including: economic attractiveness of SCC; firm sustainability strategy; policy and societal environment; product category; supply chain relationships; and technology. Research limitations/implications The conceptual model proposes that SCC increases with servitisation. It also proposes that the main circularity effect stems from increased product longevity, followed by closed resource loops and finally resource efficiency. The model is deduced from the literature by using secondary data. Practical implications The review provides practitioners with a framework to increase SCC through PSS business models. It also gives insight into the various contextual factors that may affect how a manufacturer’s servitisation strategy contributes to SCC. Originality/value This review contributes to the understanding of the relationship between servitisation and SCC by synthesising the different effects that exist. Moreover, it creates new knowledge by identifying a range of contextual factors affecting the relationship between PSS and SCC.
... Earley and Goldsworthy's (2015) findings align with current practices in the industry, where companies such as Nudie Jeans, Patagonia, VIGGA and Filippa K all have integrated life-extending practices to their business models through either reuse, repair, resell or renting. These companies all produce clothes of high quality and durability, which enable them to maintain the value of the clothes (Pal, 2016). Despite efforts to extend the life of garments, GFA and BCG (2017) find that 82 per cent of clothes are sent to incineration or landfill. ...
... As mentioned in Section 4.3, collaboration is crucial for change towards circularity (Pal, 2016;Poldner, 2013; C1; R1; R2; R3; O1; O3; O4; O5; O6; O7) (see Table III). ...
Article
Purpose The purpose of this paper is to explore the drivers, inhibitors and enablers of creating a textile-to-textile recycling system in the Scandinavian fashion industry. It investigates the technology, innovation and systemic changes required to enable circular supply chains. Design/methodology/approach The research study uses a qualitative, interpretivist approach, drawing on in-depth semi-structured interviews with stakeholders in the Scandinavian fashion industry. Findings The main inhibitors to textile-to-textile recycling systems in the Scandinavian fashion industry are: limited technology which creates a challenge for separating materials; high costs of research and development and building the supporting logistics; complexity of supply chains including the multitude of stakeholders involved in product development. The enablers are design and use of new materials, increased garment collection and collaboration. This research suggests that sorting and recycling technology can be enhanced with the use of digital technologies, as this would create transparency, traceability and automatisation. Research limitations/implications The research is limited by a small sample size and lack of representation of all key stakeholder groups, which limits the ability to generalise these findings. However, as an exploratory study, the findings provide insights that can be further tested in other contexts. Originality/value Understanding of textile-to-textile recycling is emerging both theoretically and practically, however, there is still much that is not understood. This research contributes to furthering understanding of how technology, collaboration and systemic change in the fashion industry can support opportunities for textile-to-textile recycling, thereby aligning with circular economy principles.
... With regard to sustainability issues (RQ3), this literature review yielded promising results. CFC mainly contributes to sustainability by de-valuing material consumption and altering traditional consumption patterns (Mont, 2002a;Maxwell and Van der Vorst, 2003;Pal, 2016). It helps to decrease negative environmental impact, reduces the reliance on resources and extends the lifecycle of a product (Hu et al., 2014;Gill et al., 2016;Pal, 2016). ...
... CFC mainly contributes to sustainability by de-valuing material consumption and altering traditional consumption patterns (Mont, 2002a;Maxwell and Van der Vorst, 2003;Pal, 2016). It helps to decrease negative environmental impact, reduces the reliance on resources and extends the lifecycle of a product (Hu et al., 2014;Gill et al., 2016;Pal, 2016). Waight (2013) identified re-use as the best option for a green economy. ...
Article
Purpose The purpose of this paper is to explore the existing literature on CFC together with its relative concepts and discuss the current state of knowledge in the field of alternative apparel consumption. Drivers, barriers and future pathways of CFC – from the business and consumer’s perspective – are extracted, summarized and discussed. By using a holistic approach, this study aims to demonstrate the linkages and interplays among the actors. Helpful implications for the industry and policy makers are derived. Design/methodology/approach A holistic systematic literature review was conducted. More than 2,800 journal articles were reviewed for this conceptual paper, and the ones meeting the search criteria were subjected to a qualitative content analysis. Findings The findings facilitate a better understanding of what enables or prevents CFC from becoming a mainstream consumption approach. The study also examines the sustainability aspects of CFC, discussing both the positive environmental benefits and its negative impacts. Practical implications The results of this study can help businesses, governments and institutions develop more efficient strategies toward promoting sustainability in the fashion industry. Understanding the drivers and barriers of CFC, in addition to the possible sustainability benefits of CFC, can facilitate and accelerate adoption of future business models of CFC. Originality/value CFC is a relatively new concept in the field of academic research. In fact, this study is among the first to explore the interplay of drivers and barriers from both the consumer and industry perspectives. This paper can support further academic and business efforts aimed at promoting CFC.
... fashion industry (Khitous et al., 2022). An example of this is the application of PSS in the second-hand clothing sector, enabling the delivery of added value, product leverage, collaborative partnership, information transparency, awareness, and platform-enabled networks (Pal, 2016). ...
Article
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Sustainability has become a crucial issue today in order to align lifestyle with the physical limits of the planet, so economic, social, and political agents must urgently adopt actions. In the case of the textile industry, it has traditionally been characterized by short and highly changing fashion cycles, leading to unsustainable production and consumption practices by producers and consumers, generating between 2 and 8% of global carbon dioxide emissions, as well as a significant amount of waste. However, significant improvements have been observed in the sector in recent years to adopt sustainability principles, so this research article proposes a systematic literature review to identify them. Our findings show progress in four dimensions: (a) changes in consumer behavior: increased awareness and value towards sustainability; (b) new value propositions based on sustainability principles; (c) application of circular economy principles to the fashion industry; and (d) new business models and niches in the sustainable fashion industry. Additionally, a future research agenda is proposed, highlighting the main challenges that need to be addressed in each of the analyzed dimensions.
... In this regard, Lewis and Howard (2009) point out that if a manufacturer lacks service-related capabilities such as knowledge on local markets, it is preferable that they outsource these services to intermediaries. For instance, a fashion company could resort to a Logistics Service Provider (LSP) to deliver rental clothes to users and collect them back (Pal 2016). Companies may not only outsource only service-related activities when they embark on servitization, but also production-related ones. ...
Article
Full-text available
Servitization poses several challenges to supply chain managers. Existing supply chain features can facilitate or hinder servitization, which, in turn, transforms supply chain features, requiring planning and adaptation. We address this bidirectional relationship through a systematic literature review (n = 70), analysing ten supply chain features across three dimensions: configuration, collaboration and coordination. We find that decentralized supply networks, aligned strategies, high trust, improved information technology and joint planning are antecedents supportive of servitization. Both upstream and downstream supply chain positions provide resources essential for servitization, while different vertical integration levels support different types of services. Consequences of servitization include a downstream shift, increased outsourcing, stronger operational linkages and potential power imbalances, favouring firms with strategic resources. After comparing and integrating the diverse literature perspectives, we summarize our findings in two tables and a conceptual framework. We conclude by providing six future research directions and a checklist of managerial recommendations.
... Different supply chain partners and other actors such as charity organisations and service providers are taking initiatives such as product take-back, repairing, and upcycling to achieve sustainability (Paras, 2018). There exist several sustainable models in the fashion business, which are elaborated further below (Pal, 2016). ...
... India, with 18 articles, is in 16th place among the top 20 nations in terms of research activity in the domain. Indeed, Western experts tend to be more interested in Servitization, smart supply chains and circular economy practices (Kamal et al., 2020;Paiola et al., 2021;Pal, 2016). Table 7 displays the total figure of citations for each country. ...
Article
Purpose This study aims to explore a paradigm for using servitization in circular supply chains, with research fields including smart, sustainable supply chains, circular economy, innovation, digital technology, product service systems and sustainability as focal areas. Design/methodology/approach A comprehensive statistical analysis of the literature on servitization, circular economy and smart supply chains reveals the history of the industry, including scholarly work, major concerns and future research prospects. The database for the analysis is provided by Scopus. Consequently, 288 research articles were reviewed, and the research trends of servitization, circular supply chains and smart supply chains from 2014 to 2022 (Q1) were covered. Findings The analysis reconnoitres bibliometric statistics highlighting notable authors, contemporary keywords for sifting through the literature, scientific dimensions related to smart supply chain, servitization and the circular economy, historical growth based on exploration trends and country-by-country investigation of the research field. The study also proposes a conceptual framework that illustrates how a greater emphasis on removing barriers to servitization could increase the efficiency of various circular supply chains. Given this, there is room for further research into the role servitization plays in ensuring long-term sustainability. Originality/value This paper helps to understand current scholarly publications on servitization, smart supply chains and their significance in the circular economy. It also provides a template to utilize the field’s prior accomplishments as a guide to future research opportunities.
... For instance, "platform-as-a-service" models [29] have developed because they unlock new sustainable opportunities for the sector, as the entire lifecycle responsibility is transferred to the textile manufacturer, who maintains the product ownership [30]. Furthermore, an extreme case is represented by the concept of "clothes as-aservice" [31] where the item is provided for free in exchange for the supply of all the services and whose revenues are generated from the entire lifecycle. ...
Chapter
Organizations are increasingly transforming their business models from the provision of products toward the provision of services to gain a competitive advantage. This phenomenon is known as servitization, a form of transformation which is particularly accelerated by the impact of digital technologies. Digital servitization is a contemporary topic in academic literature, with few contributions investigating the main forces acting as drivers and barriers. Despite textile manufacturers are progressively developing advanced solutions to stay ahead in the competition, little is known about sectoral-specific drivers and barriers of digital servitization. By addressing this gap, this study aims to shed light on the phenomenon through semi-structured interviews with textile manufacturers and their business partners. This paper provides a first attempt of mapping drivers and barriers, and, by leveraging the contingency theory lens, these have been grouped into six main factors: “technology,” “organization,” “customer,” “competition,” “collaboration,” and “governments and other associations.”
... A change to conventional business models (BMs) and consumption habits is needed to reduce current unsustainable impacts [7]. BMs based on ideologies under the circular economy and the sharing economy are anticipated to contribute to sustainability objectives [8] and can be seen as solutions in the fashion industry [9]. Tukker et al. (2015) has analysed and noted BMs like product-service systems (PSSs) often recognise different sustainability goals and are seen as pathways to the acceptance of service-based societies and more sustainable solutions [10]. ...
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Business models like product-service systems (PSSs) often recognise different sustainability goals and are seen as solutions for the impacts of consumption and fast fashion, but there is a lack of evidence supporting the environmental claims of such business models for clothing. The research aimed to understand if rental clothing business models such as PSSs have the environmental benefits often purported by quantifying the environmental impacts of rental formal dresses in a life-cycle assessment (LCA) in a case study in Stockholm, Sweden. The effects of varying consumer behaviour on the potential impact of a PSS vs. linear business model are explored through three functional units and 14 consumption scenarios. How users decide to engage with clothing PSSs dictates the environmental savings potential that a PSS can have, as shown in how many times consumers wear garments, how they use rental to substitute their purchasing or use needs, as well as how consumers travel to rental store locations.
... The shift to service-based offerings or servitization means that a result or a function is sold instead of a product (Mont, 2002). The provider retains ownership, has more opportunities to capture value in the supply chain (Vandermerwe and Rada, 1988;Parry and Tasker, 2014) but also more responsibilities (Pal, 2016). The provider now has to manage assets that are located at the customers' locations. ...
... The fashion industry is a highly competitive industry because products have relatively short life cycles and are relatively easy to copy in the global market. Servitization is ongoing in the fashion industry to survive dynamic competition in the market [11,12]. Thus, the second part is an in-depth case study of servitization in the fashion industry to identify specific practices. ...
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Servitization is a customer service with integrated product-service offerings, called product-service systems. This study aims to analyze consumer awareness and user behavior of servitization and focus the personal styling service in fashion industry. We used the social network and text mining techniques to capture social network service communications, which is a great source of useful information close to customers. Frequency analysis, centrality analysis, clustering analysis, and network visualization were conducted to investigate consumer awareness and user behavior using big data in social media. “Shoes” and “clothes” were the most frequently apparent keywords with the notion of “servitization,” and the keywords “home” and “fashion” had the highest degree of centrality in the network. Four clusters were found on the notion of servitization: fundamentals, fashion, home, and job seeking. A significant transition toward servitization is ongoing in various industries, especially the fashion industry, according to the clustering analysis. To gain a better understanding of this transition, a commercially available personal styling service was investigated. Three major companies were selected by sales volume and reputation, and the names of these companies were used as search keywords to acquire related data on social media. The keywords “men’s fashion” and “subscription box” appeared frequently apart from common fashion-related hashtags. In betweenness centrality, “best quality” and “low price” were the most important keywords in the market. This study contributes to the investigation on the trend of servitization and provides insights to service providers on consumer awareness and user behavior toward this trend via social media.
... In that way, value is created through quicker product introductions, new business models, supporting customer success, developing a product as a part of broader system, and data analytics (Rymaszewska et al., 2017). Similarly, in a fashion setting, Pal (2016) developed six dominant ways to create value by driving responsibility, and these are value-adding services, product leverage, collaborative partnership, information transparency, awareness and platform-enabled networking. ...
Chapter
The transition from goods-dominant logic to service-dominant logic has captured the attention of industries for decades now. Servitization is one of the concepts that enable organizations to make this transition by providing services along with their products and has become an important competitive strategy for organizations to survive in their ecosystems. Thus, in this chapter, the objective is to increase the understanding of servitization concept in the era of Industry 4.0 from supply chain management perspective. The content analysis methodology is used to examine articles that bring together servitization and supply chain management and to find out where servitization stands with regards to Industry 4.0 applications. The findings show Industry 4.0 applications during servitization operations are yet to develop, and accordingly, the chapter concludes with further research directions in relations to servitization and Industry 4.0 applications in the frame of supply chain management.
... In particular, SMEs will benefit from the digitalization of data and the knowledge management process significantly . Manufacturing companies, in their turn, could leverage the support of collaborative partnership and platform-enabled networking in their servitization initiatives aimed at building integrated product-service offer, which enables value in use (Pal, 2016). Crowd-based open business models, in particular, reward-based crowdfunding, go far beyond just fundraising campaigns -together with capital values it brings technical and market knowledge (Nucciarelli, 2017). ...
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The aim of the present study is to explore Digital Transformation frontiers using the lens of Open Innovation. By implementing bibliographic coupling method, the authors bring together segmental publications from different research fields and provide a comprehensive overview of the combined Open Innovation and Digital Transformation field's intellectual structure, revealing the different groups of thoughts, influential authors and pressing topics. The research findings illustrate, the research area has polycentric composition with absence of overlaps between articles. Five main research groups are identified: Co-evolution of Digital Technologies and Open Innovation; Digital Peer-communities; Digital Ecosystems; Knowledge Management in the Open and Digital Era; Open Innovation, Digital Technologies and Businesses Performance. The current research contributes both Open Innovation and Digital Transformation fields by cross-exploring each phenomenon and revealing how Digital Transformation shape the nature of innovation as a collaborative activity as part of independent research area.
... Sustainability reporting can therefore be viewed as a crucial driver in building corporate sustainability in large industrial companies in both the service sector (Carballo-Penela and Castromàn-Diz, 2015) and servitized organizations (Beuren et al., 2013;Bigdeli et al., 2017). Communication plays an essential role in environmental strategies (Gonzáles-Benito and Gonzáles-Benito, 2005), so servitization can extend corporate responsibility in terms of information transparency (Pal, 2016). ...
Article
Servitization is a process adopted by some industries and companies to create competitive advantage and increase the value of physical products by adding services. Manufacturing companies may decide to integrate a product–service system into their activities. However, there is no clear evidence of the effects of servitization on performance or sustainability, particularly in a circular economy. The aim of this study was to assess the potential impact of servitization on sustainability in a sample of 208 European listed manufacturing companies by investigating corporate sustainability disclosure, environmental performance, and policies. Using the business descriptions in the Bloomberg database, we identified two groups of companies: “pure manufacturers” and “non pure manufacturers.” We examined potential differences in sustainability between the two groups resulting from servitization. Data were collected for the fiscal year 2016. Our findings suggest that servitization leads to improved energy consumption and therefore enhances environmental performance. However, servitization had no effect on corporate sustainability disclosure and other environmental policies such as environmental assurance, emissions reduction policies, and environmental supply chain management.
... elektronik cihaz i?in (?rn.,Lodhia ve di?., 2017; Bahers ve Kim 2018) ortaya koymu?tur. Pazarlama literat?r?ne bak?ld???nda ise G?S'?n a??rl?kl? olarak moda end?strisinde (Kant Hvass, 2014;Pal, 2016) yap?lan ?al??malarda incelendi?i g?r?lmektedir. ...
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Teknolojinin hızla gelişmesiyle elektronik ürünlerin ömürleri kısalmakta ve elektronik atıkların sayısı buna paralel biçimde artış göstermektedir. Elektronik atıkların kazanılmasında ve/veya uygun bir biçimde bertaraf edilmesinde belediyelerin, üreticilerin ve tüketicilerin sorumlulukları vardır. Bu çalışmanın amacı elektronik atıkların önemli bir bölümünü oluşturan cep telefonlarında üreticilerin sorumluluklarını "genişletilmiş üretici sorumluluğu" kapsamında incelemektir. Genişletilmiş üretici sorumluluğu, cep telefonu üreticilerinin (n=12) kurumsal web siteleri aracılığıyla içerik analizi kullanılarak incelenmiştir. Araştırma sonuçlarına göre cep telefonu üreticilerinden sadece bir tanesi Türkiye’de cep telefonlarını geri alma programı uygulamakta ve konuya dair bilgileri web sitesinde ayrı bir sayfa olarak aktarmaktadır. Diğer üreticiler ise henüz Türkiye’de geri alma programı uygulamamaktadır. Ayrıca diğer üreticilerin konu ile ilgili web sayfalarında yer alan bilgilerin bazıları Türkçe bazıları da İngilizce olarak yer almaktadır.
Chapter
This chapter is a systematic literature review of research papers on the role of digital technologies and digital marketing in fashion and textile supply chain management. Over the last decade, the fashion and textile industries have faced criticism over poor working conditions, employee exploitation, and human rights violations. This has led to a growing interest in how technology can transform the fashion and textile supply chain. Despite the negative perception associated with ‘fast fashion’, which is criticized for harming the environment and fueling consumers’ instant gratification, digital technologies in general and digital marketing in particular offer a pathway to improve supply chain operations. Research findings from a careful examination of 74 papers indicated four interwoven key research themes: digital transformation in fashion and textile supply chains, sustainable supply chain and circular economy, digital resilience in the fashion and textile industry post-COVID-19, and evolving business and supply chain models. In theme 1, prominent technologies, including blockchain, 3D-virtual technologies, and the Internet of Things, were major motors driving the supply chain transformations. Emerging advanced technologies, including AI, robotics, and cloud computing, are instrumental in enhancing supply chain operational transparency and efficiency. Digital marketing and e-commerce technologies further the advancement of supply chain transparency and efficiency in creating a demand-driven supply chain model, which results in not only shortened lead time but also complicated the issue of supply chain sustainability. Findings on Theme 2 on supply chain sustainability and Theme 3 on the impact of COVID-19 reinforce the interwoven characteristics of the topics. While sustainability is a sure concern of supply chain management, Covid-19 heightened the urgency of sustainability as a pressing issue, accelerated the development of digital technologies, and eventually led to the rise of new business models in supply chain management. Findings in theme 4 on business models further confirm that digital technologies enable new models within four categories of models, embracing both upstream and downstream supply chains, and addressing both pertinent supply chain concerns of lead-time and sustainability. The review identified research gaps and proposed future research directions, including but not limited to the adoption of digital technologies for disruptive situations and the integration of advanced technologies in a more specific, process-oriented approach, a broader context for the impact of digital marketing and e-commerce on the supply chain, a holistic approach to how digital technology application would impact sustainability and the evolution of multiple business models in the fashion supply chain. The chapter contributes to understanding how digital technologies and digital marketing are reshaping the fashion and textile supply chain, highlighting the potential for improvements in sustainability, efficiency, and resilience.
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Purpose: This review paper provides an inductive analysis on "Smart product service systems" in fashion industry by explaining how servitization as a form of service innovation is critical for sustainability, and the promise of digital technologies for smart fashion industry based on analysing current challenges, opportunities, and digital technologies for the implementation of Smart PSS in the fashion industry. Methodology: The study employed an inductive analysis approach to identify the servitization domains, respective Smart PSS applications and the environmental sustainability results. The environmental sustainability results matched with the services were derived from the extensive literature by inductive coding of all identified Smart PSS applications through systematic literature review. Findings: Fashion industry applications of Smart PSS were matched with the respective servitization domain, and the discussion were extended with the possible environmental sustainability results based on the literature content. Further research questions have been proposed. Originality: Recent research calls for contributions about the effects of digitalization on different outcomes of servitization beyond financial performance and draws attention to the small number of studies addressing the environmental benefits of digital servitization to the circular economy. This study addresses the research gap for a scholarly discussion about the environmental sustainability results of digital servitization in fashion industry and provides a comprehensive future research agenda.
Article
Purpose This study aims to examine how degree of servitization and breadth of servitization affect the firm performance, and the moderating roles of corporate social responsibility (CSR) and green innovation. Design/methodology/approach The hypotheses are tested using panel data regression models from 2010 to 2020 based on 10,539 firm-year observations from 2,362 Chinese listed manufacturers. Findings Considering the classification of servitization, the results show that both degree and breadth of servitization have positive impacts on firm performance. In addition, CSR strengthens these impacts, while green innovation only strengthens the impact of degree of servitization on firm performance. Practical implications This study suggests that manufacturers should obtain greater profits by actively implementing the servitization strategy, and effectively take their social responsibility by achieving value co-creation with stakeholders. Also, they should carry out green innovation, develop green products and provide eco-friendly services. Originality/value This study contributes to the servitization literature by deepening the understanding of the value creation effect of services based on the service-oriented logic. Also, this study contributes to the sustainability literature stream by revealing the moderating roles of CSR and green innovation based on the stakeholder theory.
Article
Purpose Using an abductive perspective, this study aims to review the scientific literature about the governance and management of the digital supply chain (DSC) in the context of the business organizations, providing an overview of the state of the art of the research and outlining a future research agenda with a knowledge management (KM) focus. Design/methodology/approach After investigating the Scopus database, 54 articles were identified as relevant and then subjected to an initial discernment. After this assessment, 34 articles focusing on operations management were further analyzed through both a bibliometric analysis and a content analysis. Findings The DSC represents a research area of increasing attention, with relevant contributions to several aspects of the field, as well as about KM. At the same time, the results show that the scientific literature on DSC models, solutions and applications is fragmented. Although the analysis has found a heterogeneous literature, two main streams of research seem to emerge: KM in the business culture development about DSC and KM in the business technological evolution about DSC. Originality/value Although there exists growing interest in the scientific community, or perhaps because of this, area of research remains fragmented and under-theorized, thus requiring more systematic studies considering both economic and social aspects of the DSC. This study aims to provide innovative insights about this evolution, especially highlighting the two main contributions of KM in DSCs that have been revealed (business culture development and business technological evolution).
Article
Purpose Australians consume twice the global average of textiles and are deeply engaged in a linear take/make/waste fashion model. Furthermore the Australian fashion sector has some unique supply chain complications of geographical distances, sparse population and fragmentation in processing and manufacturing. This research aims to examine how Australian fashion small to medium enterprises (SMEs) are overcoming these challenges to run fashion businesses built around core principles of product stewardship (PS) and circularity. Design/methodology/approach SMEs make up 88% of the Australian apparel manufacturing sector. This qualitative exploratory study included in-depth interviews with three Australian fashion SMEs engaged in circular design practice, and a focus group of 10 Western Australian fashion advocates of sustainability. Analytic coding and analysis of the data developed eight distinct themes. Findings This study examines the barriers to circular economy (CE) that exist in the Australian fashion sector, and maps the practice of Australian SMEs with circular business models in overcoming these barriers. In CE innovation, Australian SMEs may have an advantage over larger fashion companies with more unwieldy structures. Employing design-thinking strategies, Australian SMEs with a foundation of PS and circular purpose are creating new systems of viable closed-loop business models and design processes. Originality/value The themes from this research contribute to the limited literature on circular innovation examples that link CE theory with practice in the fashion sector. The model for circularity maps the practice of three SMEs built around core principles of PS and circularity in overcoming the barriers to CE in an Australian context, and may be used as a visual tool in education and understanding.
Article
Purpose Ubiquitous digital technologies are driving organisations to embrace non-traditional digitally transformed business models incessantly. Heterogeneous literature contributions have resulted in a spur in the research related to business transformation driven by digital technologies in recent years; consequently, the research under the digital transformation (DT), even though becoming a hotspot, remains very fragmented. The authors endeavour to holistically present the literature's intellectual structure under DT as a concept, its evolving journey and the emerging research streams in the business and management domains using the techniques of bibliometric analysis. Design/methodology/approach By performing bibliometric analysis on 234 research articles published over the last 20 years in the DT domain, retrieved from Thompson Reuters Web of Science TM , this study culls out thorough insights from the citation, co-citation and keyword analysis. Further emerging research streams were evaluated using VOSviewer software. Findings The study depicts an overall incremental trend of year-on-year publications, authors' performance, publication journals, associated institutions and research driving countries, along with key insights from co-citation network analysis. Furthermore, the study evaluates four research areas – organisational impacts, applied applications and insights, operational processes and social aspects, comprising eighteen research streams that comprehensively cover-up research under the DT domain. Research limitations/implications The study contributes to the literature of DT by amalgamating the status of the present research, but more importantly, by deriving the research areas and research streams, which can be further expanded by researchers as future research streams. Practical implications For the practitioners, the study aims to act as a ready reckoner repository with practice-oriented literature references to facilitate them building knowledge and taking effective strategic decisions to harness the benefits of DT more proficiently. Originality/value This study illustrates the bibliometric structure of the DT literature and presents insights from the growth of the literature year-on-year.
Chapter
The transition from goods-dominant logic to service-dominant logic has captured the attention of industries for decades now. Servitization is one of the concepts that enable organizations to make this transition by providing services along with their products and has become an important competitive strategy for organizations to survive in their ecosystems. Thus, in this chapter, the objective is to increase the understanding of servitization concept in the era of Industry 4.0 from supply chain management perspective. The content analysis methodology is used to examine articles that bring together servitization and supply chain management and to find out where servitization stands with regards to Industry 4.0 applications. The findings show Industry 4.0 applications during servitization operations are yet to develop, and accordingly, the chapter concludes with further research directions in relations to servitization and Industry 4.0 applications in the frame of supply chain management.
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Product-service systems (PSS) are often presented as an inherently sustainable business model. The argumentation is often based on theoretical considerations, which cite circular economy (CE) characteristics in PSS business models as an explanation. In this paper we examined to what extent positive and negative sustainability effects of PSS could actually be observed, based on use cases. For this purpose, we conducted a systematic literature review and analyzed the statements on sustainability effects based on the triple bottom line approach. We find that positive sustainability effects, especially on the environmental sustainability of PSS, are described disproportionately often, which may be indicating a possible publication bias. In addition, the methods used to derive statements on sustainability effects are very heterogeneous and often unsystematic, making it difficult to compare the described effects. Furthermore, we were able to identify drivers that are particularly often considered in literature to be responsible for sustainability effects. As a result, we were able to derive direct implications for future research in the field of sustainability assessment of PSS.
Article
Purpose Unsustainable fashion consumption and wasteful practices have recently garnered attention in practice and academia; however, research in this field is limited. This study is based upon an extensive review of the literature and aims to fill this gap by providing an in-depth understanding of various drivers and actors operating in the closed-loop fashion value chain. The purpose of this study is to develop a framework of transformation from the linear economy (LE) to the circular economy (CE) for the fashion industry based on “transition theory.” Design/methodology/approach This study is conducted in two phases. In Phase 1, a bibliographic compilation on the given subject is done. In Phase 2, data about the case company is collected through trade media and semi-structured interviews with the founder and the designers. Findings The study found that key drivers for the closed-loop fashion value chain are collaboration with partners, innovation, waste management system, customer connect and changing utilization patterns. Based on the extensive literature review and analysis of the case study, it can be concluded that to incorporate CE principles, namely, reduce, repair, reuse and recycle into current business models, redefining existing value propositions and transforming various business model elements is essential. Practical implications A three-level (discrete level, aggregator level and the peripheral level) framework is developed that can help the fashion industry in transition from LE to CE. This study will help fashion houses to understand how they can work in tandem with various stakeholders to develop sustainable business models. Originality/value This paper contributes to research by advancing the understanding of how to further develop and redesign an innovative business model framework for the circular fashion value chain. A three-level framework is developed that can be used for transition from LE to CE, especially in the fashion industry. This study is one of the first research that has tried to analyze the Indian case company for CE practices in fashion.
Article
Purpose The purpose of this paper is to discuss how organisational complexities influence the design of circular business models, which have recently been introduced as a new panacea for aligning the interests of business with the needs of the environment. Design/methodology/approach The Service Shirt, a new garment concept, is used as an illustrative case example for demonstrating some of the organisational complexities of making circular business models operable. The shirt was developed through a series of design workshops for the fashion brand Fashion Alpha. Findings The analysis highlights multiple challenges emerging when a fashion product with a significantly extended lifecycle passes through different users, organisations and business models. It is concluded that it is difficult to talk about a circular business model (singular) as circular economy solutions depend on the contributions of multiple stakeholders with business models. Practical implications The findings illustrate how fashion companies interested in the circular economy fundamentally have to rethink conventional approaches to value, organisational boundaries and temporality. Originality/value Drawing on a case example from the fashion industry, the paper demonstrates the organisational complexities linked to the design of new business models based on circular economy thinking, as these require the coordination of actions between autonomous actors driven by different logics regarding value creation, value delivery and value capture.
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Servitisation studies in extant literature contribute to the resource-based view and relational view where industrial organisation view was largely ignored due to the focus on individual manufacturing units. In international business industry, competitiveness is required to enhance the performance of individual organisations. Following post-positivism epistemology, a multi-case study approach has been employed in this study. The unit of analysis is the network consisting of manufacture, supplier and the customer. Two such units of apparel manufacturing industry in Sri Lanka and two units from textile manufacturing industry in Taiwan were selected. This study establishes the link between servitised industry and national competitive advantage. The collaboration with suppliers, indirect competitors and other partners were identified as critical factors to differentiate a business-to-business (B2B) manufacturing industry in an international business.
Article
Purpose The purpose of this paper is to analyze the business model of second-hand fashion stores and explore their challenges/opportunities and suggest potential strategies for second-hand fashion retail stores. Design/methodology/approach A qualitative research method using in-depth interviews of convenience sample of owners/store managers from within the USA was employed. Findings Contrasting the traditional retail stores, customers are the primary partners and suppliers of second-hand fashion stores. These stores retain minimal profits given a business model that typically involves sharing profits with customers. Cheaper price, thrill of finding great deals, value for brands and variety are the primary reasons mentioned by respondents for shopping at second-hand stores. Research limitations/implications Limitations include the use of a convenience sample of store owners/managers as well as the research is limited to women and children’s stores. Respondents of the study were from the same geographical region and the characteristics of the redistribution markets may vary in a different region. Practical implications As a means to foster textile waste reduction through second-hand clothing business, these stores could adopt innovative revenue streams, additional partnerships, and improved fashion and store appeal that may be effective in increasing profits and the number of customers. Originality/value This study is one of the early attempts to examine the business model of second-hand fashion stores, a form of collaborative consumption in the fashion context. The study contributes in promoting second-hand fashion stores as a sustainable business model in the fashion industry.
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In most nations, textile waste management is recognized to be a multi-actor system; however most participating actors tend to play a significant role in handling and treating the textile waste single-handedly thus resulting in a very fragmented system fraught with many challenges. In addition, the main textile waste treatment, e.g. in Sweden is still incineration (nearly 55% of per capita disposal) resulting in low degrees of value generation. Nearly 20% of the waste is handled by ten major charities in Sweden. This highlights the necessity for the actors to perform in a network and expand their collaboration, thus move more efficiently towards development of a sustainable value innovation, and find an alternative new way to manage textile waste. Given this our study strives to investigate the challenges and opportunities of implementation of a collaborative business model for sustainable innovation. By taking the benefits of actor-, activity- and value-mapping technique, our study helps in gaining a better realization of the Swedish textile waste management system. The core values of actors have been identified along with the identification of their shared and conflicting values with the aid of a value mapping tool. Data was collected through semi-structured interviews from seven organizations representing the Swedish textile waste management system. Overall our study provides a rich and descriptive picture of the participating actors, their activities, collaboration and value-orientations within the Swedish textile waste management system, and highlights the key drivers of a collaborative solution, viz. legislation, trust and shared understanding and communication, that can be foreseen to increase dialogue and collaboration among actors to support the movement from egocentric to a multi-actor business model. A clear benefit of such collaborative business models is substitution of incineration by higher degrees of reuse of textiles, which has high potential to generate positive environmental impact, through reduction of toxic effects of textile incineration and also new production processes.
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Sustainable Fashion and Textiles: Design Journeys brings together for the first time information about lifecycle sustainability impacts of fashion and textiles, practical alternatives, design concepts and social innovation. It challenges existing ideas about the scope and potential of sustainability issues in fashion and textiles, and sets out a more pluralistic, engaging and forward-looking picture, drawing on ideas of systems thinking, human needs, local products, slow fashion and participatory design, as well as knowledge of materials. The book not only defines the field, it also challenges it, and uses design ideas to help shape more sustainable products and promote social change. Arranged in two sections, the first four chapters represent key stages of the lifecycle: material cultivation/extraction, production, use and disposal. The remaining four chapters explore design approaches for altering the scale and nature of consumption, including service design, localism, speed and user involvement. While each of these chapters is complete in and of itself, their real value comes from what they represent together: innovative ways of thinking about textiles and garments based on sustainability values and an interconnected approach to design.
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Executive Overview Conventional wisdom in value chain strategy assumes a one-directional flow of primary activities, starting from inbound logistics to operations, outbound logistics, marketing and sales, and finally to service. Our recent study, extensive discussions with executives, and on-site visits suggest that this wisdom may not be complete for certain industries or products. Customers on average return about 6% of everything they buy. Companies need to view this as an opportunity to give this returns pile a new lease of life. Yet many companies are not used to thinking that the things they expel such as products, waste, and resources actually have value. In fact, few retailers and suppliers capture the wealth of information that is locked inside a box that has been returned to the warehouse. Elevating the returns process to a new marketing opportunity builds a loyal customer base and also attracts new ones. In this paper, we present a redefined value chain strategy that entails a closed-loop system for industries in which reverse chain activities (reuse, repair, refurbishing, recycling, remanufacturing, or redesign of returned products from the end user) may create additional competitive advantages for the firm. Firms that do not recognize the importance of an effective reverse logistics strategy as part of their value chain risk damaging customer relations and may seriously jeopardize their brand image and reputation. A good reverse logistics program can be a differentiator and provides a means of gaining market advantage. In our perspective, a redefined value chain should be a part of the overall business strategy for manufacturers or retailers who handle product returns.
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Sustainable Product-Service Systems (S.PSS) carry great potential to deliver social well-being and economic prosperity while operating within the limits of our planet. They can however be complex to design, test, implement and bring to the mainstream. To increase our understanding of the potential benefits, drivers and barriers in S.PSS design, the research community has been inspired to collect and analyse an extensive number of cases in diverse sectors and to develop and test several design methods and tools. This Special Volume on “New Design Challenges to Widely Implement ‘Sustainable Product-Service Systems’” presents results of key studies in the following areas: user satisfaction and acceptance of S.PSS solutions, how industrial partnerships and stakeholder interactions can be designed for environmental and socio-ethical benefits, how knowledge of socio-technical change and transition management feeds S.PSS design processes, and the role of policy instruments to foster their implementation and scale-up. This Introduction reviews the current state of research and summarises the articles presented. The articles demonstrate increasing confidence in integrating approaches and theoretical frameworks from other arenas. These approaches include sociological practice theory, to shed new light on consumer practices in S.PSS configurations, and strategic niche management, to foster a suitable design and experimentation milieu. Experimentation, iteration and cyclical design processes were also seen by many authors as crucial to implementing and stabilising S.PSS solutions, but also their continuous sustainability evaluation. Several articles highlight the importance of local authorities, in developing S.PSS-enabling policies as well as supporting novel networks of stakeholders in the co-production of value. Finally this Introduction highlights key issues for a design research agenda, including but not limited to the development of new knowledge to support S.PSS designers (such as S.PSS design in low and middle-income contexts) and the role of Higher Educational Institutions (HEIs) in the diffusion of knowledge and know-how to companies. Together, the papers in this special volume provide insight into the promise of the S.PSS concept for understanding, advancing and accelerating sustainability.
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The accelerated pace of consumption in the Western world has led to an increase in clothing and textiles disposed of in the garbage rather than being reused or recycled. The purpose of this article is to increase understanding of how clothing and textile consumption can become more sustainable by demonstrating how members of a network view and deal with this problem. The study is based on meetings over one and a half years and on a survey. Different views on the problem as well as various solutions on how to increase reuse and recycling of clothing and textiles are presented, including means and challenges. A macromarketing perspective, involving different actors in society, is necessary in order to make consumption more sustainable and for finding long-term solutions. We argue that understanding symbolic consumption and the fashion system can contribute to the macromarketing study of societal development from a sustainable perspective.
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Research on open innovation suggests that companies benefit differentially from adopting open innovation strategies; however, it is unclear why this is so. One possible explanation is that companies' business models are not attuned to open strategies. Accordingly, we propose a contingency model of open business models by systematically linking open innovation strategies to core business model dimensions, notably the content, structure, governance of transactions. We further illustrate a continuum of open innovativeness, differentiating between four types of open business models. We contribute to the open innovation literature by specifying the conditions under which business models are conducive to the success of open innovation strategies.
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In line with the current trend toward sustainability and CSR, organizations are pressured to assume extended responsibility. However, taking such a responsibility requires serious and challenging efforts as it appears to involve a wider range of issues and increased need for close interaction between actors along commodity chains. Using a qualitative case study approach, the present article focuses on Swedish public and private procurement organizations with attention paid to textiles and chemical risks. It focuses on two crucial aspects of buyers’ relationships with suppliers in their efforts to advance environmental responsibility-taking—monitoring and trust—as well as how they intersect. The aim is to demonstrate, both theoretically and empirically, the limits and possibilities of monitoring and trust for developing extended upstream responsibility. The article demonstrates the problems with, on one hand, simple ritualistic monitoring and, on the other, simple trust, and explores potentially constructive pathways to extended upstream responsibility at the intersection of monitoring and trust. In connection with the findings, the article argues that theories on responsible and sustainable supply chain management must also take the enormous variety of organizations into account: not only large, private, transnational companies, which the literature has until now been preoccupied with.
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Purpose – The purpose of this paper is to study the reuse and recycling of garments from the fashion industry's perspective. Through multiple case studies the paper maps the emerging organizational field of post-retail responsibility of garments, describing how and why several fashion companies have engaged with reuse and recycling practices and which opportunities and challenges they face. Design/methodology/approach – The study relies on the qualitative multiple explorative case study method. The data were collected from 12 in-depth, semi-structured interviews with seven fashion companies and documentation analyses of two companies. Data were analyzed using the thematic analyses approach. The main limitation of the study is the limited selection of cases and therefore a larger data set and further studies are required to extend the understanding of the phenomenon for more generalized statements and in-depth understanding. Findings – The findings demonstrate that post-retail responsibility of fashion is an emerging field in the fashion industry that offers several business opportunities to fashion companies, but also requires rethinking of existing value propositions and engagement of a wider stakeholder group in order to find sustainable solutions for garments’ end of life. The field is still new with limited best practice, however, two main strategies of how fashion companies address post-retail responsibility of their products can be distinguished: second hand retailing and product take-back schemes. Originality/value – This paper contributes to research by advancing understanding of fashion industry's role in the end-of-life of their products and the associated opportunities and challenges. This study belongs to the first round of research that directly addresses the post-consumer textile waste from the fashion industry's perspective.
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Though transparency is increasingly central to corporate sustainability and sustainable supply chains, the scholarly conversation about supply chain transparency is limited, as it defines supply chain transparency inconsistently and lacks an empirical basis. We address these shortcomings by developing a multidimensional definition of supply chain transparency and studying the Swedish garment retailer Nudie Jeans' attempt to become “the most transparent company in the world.” We extend the scholarly conversation by analyzing how a company, in practice, attempts to work with supply chain transparency and how to explain the transparency outcomes of such attempts. We argue that three underlying tradeoffs, i.e., threat vs. collaboration, standardization vs. differentiation, and means vs. ends, shape a firm's transparency outcomes. We question whether more supply chain transparency is always desirable, and argue that managers must choose between a compliance or cooperation approach to supply chain transparency.
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The concept of open innovation captures the increasing propensity of firms to work across their traditional boundaries of operation. This phenomenon has largely been studied from the viewpoint of manufacturing businesses while services have received much less attention despite the predominant role they play in advanced economies. This paper focuses on open innovation in services, both as a subsector of the economy and as a component of the activities of manufacturing firms. We study the open innovation practices of business services firms and then consider the implications for open innovation of the adoption of a service inclusive business model by manufacturing firms. Our analyses are based on a unique dataset with information on open innovation activities amongst UK firms. Overall, engagement in open innovation increases with firm size and R&D expenditure. Business services are more active open innovators than manufacturers; they are more engaged in informal relative to formal open innovation practices than manufacturers; and they attach more importance to scientific and technical knowledge than to market knowledge compared to manufacturing firms. Open innovation practices are also associated with the adoption of a service inclusive business model in manufacturing firms and service-integrated manufacturers engage in more informal knowledge-exchange activities. The paper contributes towards a reconceptualisation of open innovation in service businesses and a deeper evidence-based understanding of the service economy.
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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.
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Product-service system (PSS) innovation is a promising approach to address sustainability challenges in the automotive industry. Starting form this assumption, this paper presents and discusses the potential contribution that policy measures can have in fostering the automotive sector in innovating on a PSS level. A set of policy instruments (general instruments and specific PSS-targeted ones) are presented and classified, underlining the effects they could produce at the company and environmental levels. In order to effectively support sustainable PSS diffusion in the automotive industry, the paper suggests the integration of general policy measures (such as internalisation of external costs, extended producer responsibility programmes and informative policies), with the PSS-targeted ones (such as Green Public Procurement focused on sustainable PSS, support of companies in acquiring information related to PSS, support of demonstrative pilot projects). In addition, the paper suggests the necessity to involve actively universities and research centres.
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Closed-loop supply-chain channels are distribution systems that include activities supporting both the forward flow of goods from the manufacturer to the consumer as well as the reverse flow from the consumer to the manufacturer. In this paper, we identify the reverse logistics supply-chain channels, identify problems that companies face when they handle product returns along these channels and present the critical role that information technology and collaboration can play to mitigate many of the problems and deficiencies. A key element in reducing uncertainties in the different stages of the reverse channel of a supply chain is access to accurate and timely information on the status, location, and condition of products moving about in the supply chain. It is imperative that firms operating in the reverse supply-chain channels collaborate to integrate and share information in a timely fashion. We present a case study based on our interaction with two major consumer electronics companies and demonstrate how the use of radio frequency identification device technology in a warehousing operation can reduce the overall distribution costs for the organisation.
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Thematic analysis is a poorly demarcated, rarely acknowledged, yet widely used qualitative analytic method within psychology. In this paper, we argue that it offers an accessible and theoretically flexible approach to analysing qualitative data. We outline what thematic analysis is, locating it in relation to other qualitative analytic methods that search for themes or patterns, and in relation to different epistemological and ontological positions. We then provide clear guidelines to those wanting to start thematic analysis, or conduct it in a more deliberate and rigorous way, and consider potential pitfalls in conducting thematic analysis. Finally, we outline the disadvantages and advantages of thematic analysis. We conclude by advocating thematic analysis as a useful and flexible method for qualitative research in and beyond psychology.
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Purpose The purpose of this paper is to report the state‐of‐the‐art of servitization by presenting a clinical review of literature currently available on the topic. The paper aims to define the servitization concept, report on its origin, features and drivers and give examples of its adoption along with future research challenges. Design/methodology/approach In determining the scope of this study, the focus is on articles that are central and relevant to servitization within a wider manufacturing context. The methodology consists of identifying relevant publication databases, searching these using a wide range of key words and phrases associated with servitization, and then fully reviewing each article in turn. The key findings and their implications for research are all described. Findings Servitization is the innovation of an organisation's capabilities and processes to shift from selling products to selling integrated products and services that deliver value in use. There are a diverse range of servitization examples in the literature. These tend to emphasize the potential to maintain revenue streams and improve profitability. Practical implications Servitization does not represent a panacea for manufactures. However, it is a concept of significant potential value, providing routes for companies to move up the value chain and exploit higher value business activities. There is little work to date that can be used to help practitioners. Originality/value This paper provides a useful review of servitization and a platform on which to base more in‐depth research into the broader topic of service‐led competitive strategy by drawing on the work from other related research communities.
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Purpose The purpose of this paper is to develop a technical product‐service systems (t‐PSS) for the BoX ® (Big OptiX) ultra precision free‐form grinding machine which has been designed and developed at Cranfield University. BoX is a new machine concept where advanced mass production and ultra precision technologies are combined. Design/methodology/approach This work utilises the machine as a demonstration case study to investigate t‐PSS for the machine tool providers. It develops three t‐PSS business models for the BoX machine: product‐, use‐ and result‐oriented. Findings The paper discusses the stakeholders' responsibilities, cash flows, application sectors, and consequently benefits and shortcomings of the three business approaches. Practical implications The enhancement of competition from low cost economies, vibrant market requirements and increasing customer demands cannot be addressed merely by the latest achievements in technology. As a response to this, the modern manufacturing industry is shifting its orientation towards t‐PSS. t‐PSS is an integrated product and service offering that delivers value in use. Originality/value The novelty of this paper lies in identifying and analysing the key implications of t‐PSS on machine tool industry using the BoX machine as an example case study.
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Strategic networks such as collaborative networked organisations (CNOs) and virtual customer communities (VCCs) show a high potential as drivers of value co-creation and co-innovation. Both look at the network structures as a source of jointly value creation and open innovation through access to new skills, knowledge, markets and technologies by sharing risk and integrating complementary competencies. This collaborative endeavour is able to enhance the adaptability and flexibility of CNOs and VCCs value creating systems in order to react in response to external drivers such as collaborative (business) opportunities. Strategic business networks are active entities continuously adapting to their environment in order to enhance their capabilities to respond to short-term business opportunities, and therefore allow their business ecosystems to follow the rhythm of industry dynamics, and customers’ changing needs and preferences. Value co-creation is the new trend in open-business models trying to integrate organisations’ competencies and involve customers’ individual preferences into network and community formations for the co-creation of the next level of value for products, services and experiences to be launched into the market. This article presents a literature review on value co-creation and co-innovation concepts and styles, and proposes a reference framework for creating interface networks, also known as ‘experience-centric networks’, as enablers for linking networked organisations and customer communities in order to support the establishment of sustainable user-driven and collaborative innovation networks.
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This paper investigates how the new concept of product service systems can be used and extended to transform, elevate, and revitalize traditional equipment manufacturing industry such as the Mold and Die (MD) sector. A mold and die production service systems (MPSS) framework is established based on recent developments within our industrial collaborators. Within the MPSS framework, MD manufacturers become more specialized in producing MD products and components while sharing and outsourcing manufacturing-oriented services (MOS) from a service provider. Typical services include collaborative order pooling and release, collaborative project progress status tracking, contractor-managed collaborative outsourcing, collaborative product design, collaborative production planning and scheduling, and after-sales technical supports. MOSs are designed, developed, and deployed as SaaS (software as application services) following the service-oriented architecture. Collectively, they form iMPSS—an Information and Collaboration Platform that enables MPSS. The use of iMPSS leads to benefits for stakeholders involved in providing mold and die functionality including better shopfloor decisions and reduced IT investments. KeywordsProduct service system (PSS)–Service-oriented manufacturing–Manufacturing-oriented services–Mold and die–Collaboration platform–Service-oriented architecture (SOA)
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Commentators suggest that to survive in developed economies manufacturing firms have to move up the value chain, innovating and creating ever more sophisticated products and services, so they do not have to compete on the basis of cost. While this strategy is proving increasingly popular with policy makers and academics there is limited empirical evidence to explore the extent to which it is being adopted in practice. And if so, what the impact of this servitization of manufacturing might be. This paper seeks to fill a gap in the literature by presenting empirical evidence on the range and extent of servitization. Data are drawn from the OSIRIS database on 10,028 firms incorporated in 25 different countries. The paper presents an analysis of these data which suggests that: [i] manufacturing firms in developed economies are adopting a range of servitization strategies—12 separate approaches to servitization are identified; [ii] these 12 categories can be used to extend the traditional three options for servitization—product oriented Product–Service Systems, use oriented Product–Service Systems and result oriented Product–Service Systems, by adding two new categories “integration oriented Product–Service Systems” and “service oriented Product–Service Systems”; [iii] while the manufacturing firms that have servitized are larger than traditional manufacturing firms in terms of sales revenues, at the aggregate level they also generate lower profits as a % of sales; [iv] these findings are moderated by firm size (measured in terms of numbers of employees). In smaller firms servitization appears to pay off while in larger firms it proves more problematic; and [v] there are some hidden risks associated with servitization—the sample contains a greater proportion of bankrupt servitized firms than would be expected.
Book
Do we need a new car or a new refrigerator every ten years? What happens to our PC which is exchanged for a new model every three years? Why do our shoes last only a year or so, while those of our great grandfather served for a genera­ tion? Are businesses deliberately marketing products in a way which encourages sub-optimal use and induces consumers to buy new products? More and more consumers respond ''yes'' objecting to the business practices which reduce the life span of a product or pay no attention to efficiency in con­ sumption. The growing concem with sub-optimal use of consumer durables arises as a response to the volume of waste, as wen as to the growing conviction that over-consumption is encouraged by marketing techniques and approaches that favor lesser durability and sub-optimal use. There are signs that those things will have to change. Firstly, client orientation - a condition sine qua non of marketing success in the saturated markets of rich countries - is gaining popularity. Consumers are better informed and more influential and "intelligent consumption" is on the rise. Buyers are becoming more and more hostile towards marketing manipulation, inducing them to consume faster, more and at higher prices. The public increas­ ingly resists messages in advertisements (preventive resistance) which are pre­ dominantly persuasive (rather than educational or informative) and conceived to stimulate demand for the "new", the superficial and the fashionable.
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- This paper describes the process of inducting theory using case studies from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.
Chapter
In the 1970s, the first wave of environmental regulation targeted specific sources of pollutants. In the 1990s, concern is focused not on the ends of pipes or the tops of smokestacks but on sweeping regional and global issues.This landmark volume explores the new industrial ecology, an emerging framework for making environmental factors an integral part of economic and business decision making. Experts on this new frontier explore concepts and applications, including Bringing international law up to par with many national laws to encourage industrial ecology principles.Integrating environmental costs into accounting systems.Understanding design for environment, industrial metabolism, and sustainable development and how these concepts will affect the behavior of industrial and service firms. The volume looks at negative and positive aspects of technology and addresses treatment of waste as a raw material.This volume will be important to domestic and international policymakers, leaders in business and
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Design for Environmental Sustainability is a technical and operative contribution to the United Nations "Decade on Education for Sustainable Development" (2005-2014), aiding the development of a new generation of designers, responsible and able in the task of designing environmentally sustainable products. Design for Environmental Sustainability provides a comprehensive framework and a practical tool to support the design process. The book offers an organic vision of methodologies, tools and strategies for the integration of environmental requirements into product development. Possible strategies and design guidelines are highlighted, accompanied by a large selection of high-quality environmentally-aware product design case studies. Divided into four parts, the first part covers environmental sustainability and presents the general guidelines that can be followed to reach it. The second part examines the Life Cycle Design approach and the strategies to minimise consumption of resources, select low environmental impact resources, optimise product life span, extend the life of materials, and design for disassembly. The third part presents methods and tools to evaluate the environmental impact of products (e.g., Life Cycle Assessment) and other support tools for the integration of environmental requirements into real design processes. The fourth and final part describes the historical evolution of sustainability, both in design practice and research. Design for Environmental Sustainability is an important text for all students, designers and design engineers interested in product development processes.
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Purpose – The purpose of this paper is to explore barriers and opportunities for business models based on the ideas of collaborative consumption within the fashion industry. Design/methodology/approach – The analysis is based on a multiple-case study of Scandinavian fashion libraries – a new, clothes-sharing concept that has emerged as a fashion niche within the last decade. Findings – It is concluded that fashion libraries offers interesting perspectives, e.g. by allowing people to experiment with styles without having to pay the full cost and becoming a meeting place for young designers and end consumers. However, at present fashion libraries remain a small-scale phenomenon with difficulties reaching the mainstream market, not least due to limited financial and human resources as well as conventional fashion consumption patterns. Research limitations/implications – The study is limited to the new phenomenon of fashion libraries and does not cover other types of collaborative consumption within the fashion industry (Swap-parties, etc.). Originality/value – The paper is one of the first attempts to examine new business models of collaborative consumption in general and the fashion library concept in particular. The study contributes to the discussions of whether and how fashion sharing and collaboration holds promise as a viable business model and as a means to promote sustainability.
Article
The purpose of this study was to understand how fashion-oriented females in two different countries evaluate three use-oriented product–service systems (PSS): clothing consultancy, renting and swapping. A mixed-method approach was utilized, including focus group interviews and a questionnaire. Both countries exhibited a higher level of interest in use-oriented PSS schemes than product-oriented offerings. Positive evaluations of use-oriented PSS included the ability to reduce excess consumption via smarter purchasing, becoming more knowledgeable about personal style and fit, and enhancing creativity with items already owned. Participants also positively evaluated the ability for some PSS concepts to satisfy their desire for change and social support or interaction as well as to save money and increase product satisfaction. Negative evaluations included lack of trust in the provider related to issues such as quality, maintenance and hygiene of shared goods as well as skepticism about the business model's viability. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment
Article
Article
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.
Article
Consumers’ clothing disposal decisions have lasting ecological effects because the decomposition process of certain materials may take many years. Unfortunately, in the USA, much post-consumer used clothing is discarded into landfills at the end of the use life cycle rather than recycled, with little consideration of these impacts. The primary aim of this mixed methods study was to explore a process involving consumers in redesigning their used garments as a sustainable alternative to disposal and to develop a process that future entrepreneurs might follow when starting a new clothing redesign business. Redesign requires deconstruction and reconstruction of a garment, which is a more involved process than alterations a tailor might make to improve a garment’s fit. Redesign could vary by the extent of the garment’s change, from adding minor design details such as a decorative trim, to changes of the garment’s silhouette such as adding a peplum, and to complete transformation of the garment’s original purpose such as changing from a dress to a top.Twenty-seven women (ages 18‐62, 89 percent Caucasian) participated in focus groups and the collaborative redesign process, in which the used clothing were redesigned. As a result of their evaluative responses following the redesign, the women remarked they were comfortable with used clothing and were interested in using a redesign service in the future. Participants were mostly satisfied with their redesigned garment and reported they will continue to wear their garments for a mean of approximately two years. Many (52 percent) suggested redesign could be marketed as a social experience to commemorate life events (i.e. engagement or marriage).
Article
Studies on Product–Service Systems (PSS) are emerging as a growing body of literature driven by the desire to combine economic prosperity and sustainable resource management. However, knowledge about how companies can adopt and implement PSS has remained limited. In this study, a systematic literature review is conducted related to understanding implementation of PSS business models and five sets of tactical practices. Based on an in-depth analysis of 67 articles, it was found that PSS is increasing rapidly as a research field, which is spread across a variety of disciplines and research domains. More specifically, research findings were accumulated from the field to present a framework supporting the implementation of well-established categories of PSS business models, that is, product-oriented, use-oriented, and result-oriented business models. Each business model category is linked to five operational-level tactics that ensure the model can be implemented successfully and subsequently generates value. These tactical sets include 1) contracts, 2) marketing, 3) networks, 4) product and service design, and 5) sustainability operational practices. This study concludes by proposing suggestions for future research.
Article
The world's developed economies are increasingly oriented around services, with services comprising more than 70% of aggregate gross domestic product and employment in the Organization for Economic Cooperation and Development countries. As a result, both individual companies and entire economies face the challenge of how to innovate in services. In earlier work, the author has argued for the concept of open innovation - that companies should both organize their innovation processes to be more open to external knowledge and ideas and also let more of their ideas and knowledge flow to the outside when not being used internally. Yet initial discussion of open innovation contrasted it to traditional R&D and product development; this had the effect of placing the focus more on product and technology innovation than on service innovation. Open innovation works somewhat differently in service businesses, in part because the role of the customer is different; in a service business, the customer is often involved in an iterative process with the company that results in a customer experience. In addition, innovation processes work differently in services. Few companies have formal R&D operations for the services they provide, and the customer may need to participate throughout the service innovation process. Some of the concepts of open innovation apply readily to service innovation. For example, Amazon. com has not only created open service innovation by bringing the "outside in" - think of customer reviews on Amazon.com and third parties selling products via Amazon's site - but also by taking the "inside out," by, for example, using internal knowledge and infrastructure to create a business selling cloud computing services to other companies. Companies interested in moving toward open service innovation can try techniques such as working closely with customers to develop new solutions for them; focusing offerings on utility for customers, rather than on products; and embedding the company in a customer's organization. Companies that have traditionally been product oriented may need to make some organizational changes, such as changing service pricing, as they move to a more service-oriented approach. Reprint 52211. To order reprints of this article, see page 8.
Article
Purpose – The purpose is to conceptually construct a service-dominant (S-D) logic-based integrated product service system (IPSS) business model. Design/methodology/approach – The model is constructed through literature reviews and inferences. Findings – IPSS model is in compliance with the ten fundamental premises of S-D logic as well as conforming to triple bottom lines of sustainability. Research limitations/implications – To convert a firm from goods-centric model to service-centric IPSS model is not easy. There are quite a few challenges to be overcome. Practical implications – There are many successful cases adopting service-centric business model. The key success factors are to be identified in the future studies. Originality/value – It is the first paper discussing the sustainability of IPSS model and its relationship with S-D logic.
Article
Concerns with the issues of validity in qualitative research have dramatically increased. Traditionally, validity in qualitative research involved determining the degree to which researchers’ claims about knowledge corresponded to the reality (or research participants’ construction of reality) being studied. The authors note that recent trends have shown the emergence of two quite different approaches to the validity question within the literature on qualitative research. The authors categorize and label these ‘transactional’ validity and ‘transformational’ validity. While useful, the authors assert that neither approach is sufficient to meet the current needs of the field. The authors propose a recursive, process-oriented view of validity as an alternative framework.
Article
Eco-efficient Product-Service System (PSS) innovations represent a promising approach to sustainability. However the adoption of such business strategies is still very limited because it often involves significant corporate, cultural and regulatory barriers. An important challenge is not only to conceive eco-efficient PSS concepts, but also to understand the contextual conditions that facilitate their societal embedding, and which strategies and development pathways are the most appropriate.The combination of theoretical insights from innovation studies (in particular Strategic Niche Management and Transition Management) and a case studies research (exploring the innovation journeys made by six companies in introducing their eco-efficient PSS innovations in the market) is used to investigate the factors that influence the implementation and diffusion of this kind of innovations. The article provides a structured overview of these factors, grouping them in four clusters: implementation of socio-technical experiments; establishment of a broad network of actors; building up of a shared project vision; creation of room for broad and reflexive learning processes.Based on these results it is argued that a broader and more strategic system approach should be adopted by companies. Companies should focus not only on the PSS solution and its value chain, but also on the contextual conditions that may favour or hinder the societal embedding of the PSS itself. The article concludes by outlining a key area for future research.
Article
This study contributes to current knowledge of sustainability in textile and clothing production and consumption. When the textile and clothing industry aims to promote sustainability, the main change factors have been linked to eco-materials and ethical issues in production. At present, however, business models are mainly linked with a large volume of sales and production. Although industrial development has moved toward smaller environmental impact, production as well as consumption has increased to levels where the benefits of technological development are reduced. A change is thus needed to reach a systemic transformation, not only in production but also in consumption. The aim of this paper is to open up the discussion on opportunities for radical change in this industry. The paper presents ways to rethink and redesign business in the textile and clothing field by offering an overview on several design strategies that exist today in niche markets. Furthermore we evaluate how interested consumers are in these design strategies and discuss the opportunities these design approaches offer to sustainable development through new value creation.
Article
This special issue on Product-Service Systems: reviewing achievements and refining the research agenda shows the progress that has been made in the PSS field in the last decade, including various national and international research projects and companies' initiatives, important achievements and gaps at theoretical and practical levels. Most of the papers can be of interest to practitioners, company managers and consultants, since they present methods and tools for helping companies to shift towards PSS in environmentally sound ways and to evaluate the outcomes of the shift. In addition, this issue can be of interest to the research community since it evaluates the progress in the PSS field and outlines a future research agenda.
Article
Purpose The purpose of this paper is to reflect on how representative the literature is in identifying industrial practice to designing product‐service systems (PSSs). Design/methodology/approach The paper analyses literature to report on the existing approaches used to design PSSs. A single exploratory case study approach, based on semi‐structured interviews and archival data analysis, was used to understand an existing product‐service organisation's approach to designing PSSs. A total of 12 senior managers were interviewed from a cross section of the organisation, to gain multiple perspectives on the PSS design process and ten company reports were analysed. Findings The research has identified that the PSS design process reported by literature is not representative, lacking inputs and outputs to some phases and feedback. In total, 18 inputs and 11 outputs have been identified from the case study that are not reported by the literature. These create five feedback loops within the PSS design process used by the case study organisation. This suggests that the PSS design process is cyclic and iterative and not sequential, as reported by existing literature. Research limitations/implications This research is based on a single‐case study approach, limiting the ability to generalise findings, and does not provide a complete PSS design approach. Practical implications This research compares literature against industrial practice to PSS design, presenting insight to aid practitioner's design PSSs. Originality/value This paper fills a gap in the servitization and PSS literatures; evaluating the approaches reported by literature against existing industrial practice.
Article
This volume explores the philosophical underpinnings, history, and key elements of five qualitative inquiry approaches: narrative research, phenomenology, grounded theory, ethnography, and case study. Using an accessible and engaging writing style, author John W. Creswell compares theoretical frameworks, methodologies in employing standards of quality, strategies for writing introductions to studies, the collection and analysis of data, narrative writing, and result verification. New to the Second Edition: (a) Brings the philosophical and theoretical orientations to the beginning of the book: This change helps ground students in the foundational thinking behind these methods much earlier. (b) Gives broader coverage of narrative research: Creswell expands one of the original five approaches from "Biography" to "Narrative," thus exploring a wider range of narrative opportunities--biography still being one of them. (c) Offers a much deeper discussion of interpretive approaches: This edition places much more emphasis on interpretive and postmodern perspectives such as feminism, ethnicity, and critical theory. (d) Provides more specific steps for doing research within each approach: Creswell discusses the actual procedure for each approach and includes the types of qualitative research within each of the five approaches. (e) Illustrates phenomenology and ethnography: The Second Edition contains two new, recent sample journal articles: one covering a phenomenological study, the other covering ethnographic study. (f) Includes additional examples: The author provides examples from the field of human services to enhance the already robust examples from education, sociology, and psychology. Intended Audience: This is a useful text for advanced undergraduate and graduate courses in introductory qualitative research methods across the social, behavioral, and health sciences. (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Article
In the last decade many researchers, institutes and programs in the EU paid attention to product-service systems (PSS). Given this massive effort, it is time to take stock. Is PSS research a theoretical field in its own right? Is the PSS concept indeed the road to the Factor 10 world? Is it the road to enhanced competitiveness? What is needed to really use the potential of the concept? This paper discusses these questions summarizing the analysis done in the PSS review book ‘New Business for Old Europe’, various EU sponsored projects and the conceptual approach chosen in a new research network on Sustainable Consumption and Production, called SCORE!
Article
Open Innovation has been one of the most-debated topics in management research in the last decade. Although our understanding of this management paradigm has significantly improved over the last few years, a number of important questions are still unanswered. In particular, an issue that deserves further attention is the anatomy of the organizational change process through which a firm evolves from being a Closed to an Open Innovator. The paper represents a first step in overcoming this limitation. In particular, adopting a longitudinal, firm-level perspective, it addresses the following question: which changes in a firm's organizational structures and management systems does the shift from Closed to Open Innovation entail? In answering this question, the paper uses established concepts in organizational change research to look into a rich empirical basis that documents the adoption of Open Innovation by four Italian firms operating in mature, asset-intensive industries. The results show that the journey from Closed to Open Innovation involves four main dimensions of the firm's organization, i.e. inter-organizational networks, organizational structures, evaluation processes and knowledge management systems, along which change could be managed and stimulated.
Article
Function-oriented business models or product–service systems (PSSs) are often seen as an excellent means for achieving ‘factor 4’. SusProNet, an EU network on PSSs, showed a more complicated reality. At least eight different types of PSS exist, with quite diverging economic and environmental characteristics. The economic potential of each type was evaluated in terms of (i) tangible and intangible value for the user, (ii) tangible costs and risk premium for the provider, (iii) capital/investment needs and (iv) issues such as the providers' position in the value chain and client relations. The environmental potential was evaluated by checking the relevance of certain impact reduction mechanisms (e.g. more intensive use of capital goods, inherent incentives for sustainable user and provider behaviour etc.). Most PSS types will result in marginal environmental improvements at best. The exception is the PSS type known as functional results, but here liability and risk premium issues, amongst others, need a solution. Copyright © 2004 John Wiley & Sons, Ltd and ERP Environment.
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In recent years, increased attention has been paid to issues of responsibility across the entire product lifecycle. Responsible behaviour of organizations in the product chain is dependent on the actions of other parties such as suppliers and customers. Only through co-operation and close interaction between the different parties involved is it possible to come to a specified form of responsible chain management. Drawing on stakeholder theory and literature on the resource-based view of the firm, this article presents a framework for assessing the organizational capabilities of responding to claims from internal and external parties. Interpretations of stakeholder interests, integration into business processes, monitoring these processes, and communication with stakeholders are the central processes in this framework. The application of this framework to three cases of responsible chain management illustrates the functioning of the framework as a tool for assessing organizational capabilities. Copyright © 2002 John Wiley & Sons, Ltd. and ERP Environment
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This paper describes the process of inducting theory using case studies-from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.
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Functional sales have both economic and environmental benefits—especially when the functional sales contracts are used in connection with product remanufacturing. This paper elucidates these benefits and provides an argument for why products to be used for functional sales should be remanufactured. To achieve an efficient remanufacturing process, the products aimed for remanufacturing should be adapted for the process as much as possible. The analyses of remanufacturing facilities for household appliances and automotive parts revealed that the cleaning and repairing steps are most critical in the remanufacturing process. To facilitate these two steps, the product designers should focus on giving the products the following properties: ease of access, ease of handling, ease of separation and wear resistance.
Article
The product service systems’ (PSS) sustainability potential is described in the framework of the new types of stakeholder relationships and/or partnerships, producing new convergence of economic interests, and a potential concomitant systemic resources optimization.In this perspective, it is argued that the design competencies should move towards those of the ‘strategic design’, thus introducing the concept of ‘strategic design for sustainability’: the design of an innovation strategy, shifting the business focus from designing (and selling) physical products only, to designing (and selling) a system of products and services which are jointly capable of fulfilling specific client demands, while re-orienting current unsustainable trends in production and consumption practices.Some examples of PSS are presented and discussed using the PSS categories ‘services providing added value to the product life cycle’, ‘services providing final results to customers’, and ‘services providing enabling platforms for customers’. The cases derive from an analysis of the ‘environmental friendly innovation’ yearly endowed prize submissions. The Politecnico di Milano University together with the Bocconi University and Legambiente (an environmental NGO) promotes the initiative in Italy.
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A shift in business thinking from selling products to providing service solutions to customer needs is becoming noticeable. It is driven by increasing competition and the need to identify new profit centres for producers of mature products. This paper identifies a new product group that could be interesting from the product-service system perspective – baby prams. The study presents a new business model based on selling the function that baby prams provide through leasing prams. It discusses potential barriers and necessary changes in product design and the supply chain to make it work. The product-service system in this case could include the organisation of a reverse logistics system with different levels of refurbishment and remanufacturing of prams, partially by retailers. The new model may provide customers with a high quality pram in a “like new” condition for the period they need it, and may help avoid transaction costs of having to sell the pram on the second-hand market. Economic estimations point to a significant potential for increased profits, while the environmental potential should be further investigated.
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A new trend of product–service systems (PSSs) that has the potential to minimise environmental impacts of both production and consumption is emerging. This article attempts to build a theoretical framework for PSS and serves as a background for identifying possible investment needs in studying them. There are three main uncertainties regarding the applicability and feasibility of PSSs: the readiness of companies to adopt them, the readiness of consumers to accept them, and their environmental implications. The main finding is that successful PSSs will require different societal infrastructure, human structures and organisational layouts in order to function in a sustainable manner.