Sustainable Product Service Systems in Small and Medium Enterprises (SMEs): Opportunities in the Leather Manufacturing Industry

Ricardo J Hernández Pardo,Ran Bhamra,Tracy Bhamra

doi:10.3390/su4020175

Ricardo J Hernández Pardo, Ran Bhamra + Show 1 more

Open Access

https://doi.org/10.3390/su4020175

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Journal: Sustainability	Publication Date: Jan 30, 2012
Citations: 57	License type: CC BY 3.0

Affiliation: Loughborough University

Abstract

This paper presents an approach to identify opportunities to develop sustainable Product Service Systems (PSS) involving Small and Medium Enterprises (SMEs). The purpose of the research is to build understanding of how the integration of product and service design and the use of Information and Communication Technologies (ICT) can contribute to identify opportunities to develop sustainable PSS involving SMEs. In order to develop the approach, research with 16 Colombian Manufacturing SMEs was carried out. A reference model and four generic types of PSS according to the relationships between product and service design and ICT are used to analyse the data. Finally, the possibility of extending the approach into a general framework to work with other industries is discussed.

Highlights

Sustainable business development is a relatively new area and its implementation, especially inSmall and Medium Enterprises (SMEs), is limited
Taking into account the lack of instruction oriented to SMEs in developing economies to develop these systems, the approach explored in this paper investigates the integration of product and service design with the use of Information and Communication Technologies (ICT) as a possible path to create opportunities to develop sustainable Product Service Systems (PSS) in these firms
Up to 80% of the costs associated with product development, manufacturing and use are established during the design stage [21]

Summary

Introduction

Sustainable business development is a relatively new area and its implementation, especially inSmall and Medium Enterprises (SMEs), is limited. Alternatives to support the strategic development of sustainable SMEs are needed. Product Service Systems (PSS) moving the business focus away from producing and selling physical products to offering systems of services and products to satisfy the user needs in innovative ways is one alternative approach [3]. The literature shows that if the system is designed to be sustainable benefits can arise such as dematerialization, better consumption patterns through innovative scenarios of use, new market opportunities, more efficient use of resources and cost savings [4,5]. More efficient firms with higher innovation capacity, flexible operations and better communications skills are part of the benefits of a sustainable PSS but are part of the competences required for PSS

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