Overcoming barriers towards Sustainable Product-Service Systems in Small and Medium-sized enterprises: State of the art and a novel Decision Matrix

Abstract

The Sustainable Product-Service Systems are a promising approach based on a Triple Bottom Line perspective of the sustainability. However, its practical and effective adoption is still very limited and addresses significant barriers for the manufacturing firms. Furthermore, this emergent topic has been discussed by literature mainly in large company’s context, turning in a very limited and immature stage the current body of knowledge for the Small and Medium-sized Enterprises (SMEs). Thus, considering the significance of small companies to the global economy and their intrinsic difficulties, the purpose of this study was to identify the main barriers involving the transition towards Sustainable Product-Service Systems in manufacturing Small and Medium-sized Enterprises as well as the strategies to overcome them. A systematic literature review of the past two decades was organized capturing the state of the art of the area. Findings reveal that internal barriers associated with intrinsic characteristics of SMEs become still more sensitive during the transition (e.g., limited financial resources, the lack of competences, follower mentality and resistance to change). As well as, barriers related with the novelty of Sustainable Product-Service Systems models require new attitudes to small companies (e.g., changing mindsets from product ownership to use, replacing the value of exchange by value in use involving long-term relations, understanding the Product-Service Systems concept) and particularly highlight the lack of models/methods supporting this transition. The practical contribution of this study is in organise a comprehensive body of knowledge on strategies to overcome barriers towards Sustainable Product-Service offering. Moreover, an innovative decision matrix supporting decision-makers during the Sustainable Product-Service System development was proposed from the literature review findings.