Abstract

The Product Service System (PSS) is a novel concept which emphasizes more on service provision than on the sale of products. It is believed that if designed properly, it can achieve a win-win situation—gain economic profit for companies while contribute to business sustainability in the world. Although PSS has various merits, however, companies may still hesitate to adopt it due to the risks associated with the unfamiliarity with this new concept. In view of the importance of PSS implementation in addressing the issue of the growing worldwide Sustainable Consumptions and Production (SCP), there appears to be an urgent need for companies to developing an evaluation framework of PSS implementation as an insight for managers to decide whether they should implement PSS beforehand. In this study, an assessment structure was proposed to identify the potential products for implementing PSS. Based on the literature, an influencing framework which includes 32 factors recognized by using Fuzzy Delphi Method (FDM) that may affect the decision making of companies to implement PSS was proposed. These factors are grouped into two aspects, namely, products (including services) and organization. With respect to the products, sustainability performance which includes performance as related to the economic, environmental, and social aspects is considered. For the organizational aspect, management capability and the external factors which may affect the success of PSS are considered. Both of Fuzzy Analytic Hierarchy Process (FAHP) and Simple Additive Weighting (SAW) are, then, utilized to recognize the relative weighting of evaluation criteria and determine the priority alternatives for illustrated case of the electronics firm and great retailer, respectively. The results of illustrated cases imply that the evaluation framework of PSS implementation has the advantage for managers to identify prior PSS products and understand the situation of product-based and organization-based for implementing PSS.

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