Product Service System Implementation Research Articles

Identifying rebound effects in product-service systems: actors, mechanisms, triggers and drivers

AbstractThe implementation of product-service systems (PSS) is prone to the occurrence of rebound effects (RE). This research aims to systematically identify the rebound mechanisms in a PSS context. Through the case study of a use-oriented PSS offer, we showcase a structured way to address RE that led to a comprehensive mapping of 23 mechanisms. The analysis demonstrates an approach to mapping rebound triggers, drivers, and mechanisms within the actors’ realms that designers can apply to ensure the potential sustainability gains of PSS offers.

Product-Service System business model for plastics industry

Traditional business models increasingly less accurately accommodate changes taking place in the market. Growing competition, sharing economy, digital transformation, corporate environmental responsibility, and increasing customer requirements exert pressure on enterprises to change their business mentality. One can easily observe the need for integrated, environment-friendly solutions that generate new value added to customers. To achieve that, we need new business models that would allow to discover new potential in new markets.In the face of dynamic market changes, traditional business models are increasingly less capable of addressing the growing competition, sharing economy, digital transformation, corporate environmental responsibility, and the rising demands of customers. There is a clear need for integrated, environmentally friendly solutions that generate new added value for customers. Achieving this goal requires the development of new business models that enable the discovery of potential in new markets.Therefore, searching for and creating new business models that would stand up to requirements is vital. These problems could be solved by a PSS considered a personalized business model operating in an extended time horizon. PSS is an opportunity to sell product functions and availability, as well as a perspective for multiple uses of products.This paper presents a pioneering attempt to develop a Product-Service System (PSS) business model specifically tailored for the plastics industry. An innovative approach consists in the integration of a machinery and a tool into a production unit and adding an array of services to it. This groundbreaking research, unprecedented in its scale, involved a comprehensive questionnaire-based study conducted across 60 plastics processing plants employing prevalent production techniques. The study is unique in its extensive scope and depth, as such an analysis of PSS business models within the plastics industry has not been previously explored in the open literature. The research methodology applied is thorough, covering a wide range of practical aspects crucial for the effective implementation of PSS in the plastics sector. This paper stands out for its detailed examination of 60 enterprises in the plastics industry, focusing on their interest in 95 services essential for the optimal operation of plastics processing plants and their engagement with representatives from the plastics industry. This extensive study offers valuable insights into the usage of machines and tools in plastics processing, as well as the specific needs, requirements, and challenges faced by businesses in this sector.Results of analyses demonstrate that interest in services differs depending on the size of an enterprise, processing technique, having a toolroom or not, product range, and the duration of breakdowns. A new PSS business model for plastics processing was built based on the analysis of PSS design methods and sectors to which they are addressed, PSS used in practice, plastics processing sector, questionnaire-based studies conducted among plastics processing plants, statistical analyses, advice and consultancy sessions with experts from the investigated industry, finances and trade patterns for machines. Until to date the question of precise design of such a business model for the plastics processing sector has neither been examined nor discussed or evidenced. The paper aims to bridge this gap. The approach to the issue was innovative, based on a questionnaire survey and consultations with experts which allowed to faithfully reproduce the current condition of the investigated sector. In addition, each service added on to the production unit underwent a detailed statistical analysis. The hereto presented business model is extremely comprehensive as it can be used in plastics processing plants of different sizes.

Value Leakage in Product–Service System Provision: A Business Model Alignment Perspective

To stay competitive, manufacturing companies offer product–service systems (PSS) to avoid commoditization of their products. The potential to create value through PSS offerings lies in a company's ability to successfully implement the PSS business model. However, many companies are unable to realize the benefits because PSS represents significant changes to all the business model elements, which comprise value creation, value delivery, and value capture. This leads to misalignment among the business model elements, which is a topic of interest within PSS and business model literatures. This article aims to provide empirical insights into the business-model-element alignment problems and conceptualize their consequences, which manufacturing companies face during PSS implementation. This article utilizes an abductive multicase study of three Swedish manufacturing companies with long-term experience of PSS provision to provide novel insights by identifying six alignment problems that companies face as a consequence of the interaction among the three business model elements. Furthermore, we contribute to both the PSS and business model literature by conceptualizing the consequences of business model element alignment problems, explaining the three value leakages that occur as a result of inappropriate resource and capability utilization, unattractive offer configurations, and inefficient service network processes in PSS provision.

Identification of the causal relationship between features and barriers of product–service systems based on Bayesian network model

Product-service systems (PSS) potentially offer a promising avenue for balancing resource efficiency improvement and economic growth to achieve sustainability. To successfully implement and operate PSS, early identification and mitigation of implementation barriers are required for enhanced social acceptability. To this end, determining the interrelationship between designing PSS features and potential barriers is crucial. Existing research focused on the PSS attributes and its barriers in isolation, falling short of a holistic understanding of their causal relationships. This paper aims to fill this gap by amalgamating case study data from literature survey and subsequently constructing a Bayesian network model. By establishing a graphical model and probability table, this study identified the stochastic dependencies between PSS features and barriers. This approach not only captures their relationship but also assists in predicting potential barriers based on PSS characteristics during the design phase. The results of this study are expected to furnish PSS designers with a tool for anticipating and addressing implementation barriers, thereby facilitating the successful implementation of PSS.

Does PSS help to increase circularity? A framework for the circular design process and case study of five pilots in the Dutch infrastructure sector

The circular economy (CE) has been established as one of the leading strategies to achieve a more sustainable system leading to national and global goals. One of the models coupled with CE is Product-Service Systems (PSS), with service integrated into products to various degree. PSS implementation in the infrastructure sector has been studied to a limited extent, with evidence of circularity lacking. This study analyzed five PSS infrastructure assets: bridge deck, guide rails, road lights, and municipal and provincial roads. Circularity improved in the design, input materials, and availability of secondary materials. A three-step framework is suggested to enable a circular process: incorporating R-strategies and circularity metrics during design, tracking material circularity, and evaluating implemented metrics and strategies. We suggest mandatory data collection by law to allow traceability, transparency, and the establishment of a secondary resource market.

Bibliometric Analysis of a Product–Service System’s Rebound Effect: Identification of a Potential Mitigation Strategy

A product–service system (PSS) is a concept concerning sustainability, as it offers the opportunity to decouple economic success from material consumption, thereby reducing the environmental impact of economic activities. However, researchers have identified significant barriers frequently impeding sustainability potential, which are called rebound effects. Unfortunately, the existing studies are insufficient, and there are few published studies on the actual avoidance of the rebound effect, which is a significant limitation for practical applications for decision-makers and policymakers. Therefore, this study aims to conduct a comprehensive bibliometric review of the relationship between the rebound effect and PSSs, including its drivers and mitigation strategies. This study incorporates multiple perspectives to map and analyze the landscape of rebound effect research in the context of PSSs and used 152 articles from a systematic literature review covering all publication years. Using the Scopus and Web of Science database, journals, citations, authors, and keywords were identified. This study identified the annual trend of research, listed the most influential articles, and uncovered six research topic clusters related to the rebound effect and PSSs. As an innovative feature of this study, it categorised the identified drivers based on their contextual dependencies to elucidate their interrelationships. This study also presents a categorisation of mitigation strategies based on the type of approach. This study is expected to support decision-makers and practitioners in developing sustainable PSS implementation strategies.

Nurture: A Novel Approach to PSS-Rebound Effect Identification

The product–service system is a significant research subject related to business model innovation and sustainability. However, the product–service system feature has affected the consumption behaviour, affecting nurture. The authors identified an apparent knowledge gap in the prior literature concerning nurture in the product–service system. This study examined whether nurture should be a prominent issue in the product–service system since certain features can significantly affect the achievement of set targets by generating a rebound effect. This study demonstrated that the business model system is complex, with interconnected solutions and issues. Solutions are not implemented in isolation, therefore, each decision affects the system. This study employed feedback system thinking using system dynamics. To validate its findings against the actual situation, this study employed car-sharing as a case study. The findings of this study indicate that the variable of nurture is a significant indicator of profit growth but generates a deterioration in the environmental and social performance of product–service system implementation, which leads to a rebound effect of the product–service system.

Smart product-service systems in the healthcare industry: Intelligent connected products and stakeholder communication drive digital health service adoption

Smart product-service systems (PSSs) have emerged as a solution for the ongoing digitalization of products and services, especially during the COVID-19 pandemic and under social distancing. However, the conditions for smart PSS adoption remain unclear, requiring the identification of driving attributes and the interrelationships of the attributes for smart PSS implementation in the healthcare industry. This study contributes by determining the cause-effect interrelationship among smart PSS attributes and by identifying and prioritizing the criteria that drive smart PSS adoption in chronic disease management. The study constructed a five-aspect theoretical model to deepen the understanding of digital health service adoption drivers. Data were collected from 233 healthcare industry practitioners to validate the smart PSS adoption attributes. Exploratory factor analysis (EFA) determined the structure of the attributes, the reliability of the criteria, and the validity of the aspects. The EFA result suggested 24 valid and reliable criteria drivers of smart PSS adoption in the healthcare industry, and they were grouped into five aspects. Following the smart PSS literature and stakeholder theory, the aspects are named digital health service adoption, intelligent connected products, stakeholder communication, environmental benefits, and use schemes. In addition, 17 practitioners treating patients with chronic conditions were interviewed to understand the interrelationships among the aspects and criteria. The fuzzy decision-making trial and evaluation laboratory (FDEMATEL) determined the cause-effect interrelationships based on their dependence and driving power. The FDEMATEL results indicated that intelligent connected products and stakeholder communication are the causal and focal attributes of improving digital health service adoption and providing alternative use schemes. For patients and physicians, the driving criteria include managing data, multifunctionality, data reliability, interoperability, patient communication, and resource efficiency. The theoretical and managerial implications are discussed.

Guidelines and facilitators for minimizing barriers in the implementation of product-service systems: a framework focused on circular economy

The transition to a circular economy is gaining notoriety as society demands alternative forms of production and consumption. In this context, Product-Service Systems have the potential to reconcile economic and socio-environmental development. However, the implementation of Product-Service Systems has limitations, such as poor understanding of the system, difficulties in monitoring and establishing relationships with stakeholders. In order to guarantee guarantee a successful implementation of Product-Service Systems, there is a need to understand these organizational challenges and to present opportunities to mitigate these barriers. The goal of this paper is to identify facilitators and construct guidelines, capable of minimizing barriers in the implementation of a Product-Service System. To achieve this goal, a systematic literature review was conducted, contemplating bibliometric and content analysis (57 papers were read in full). The results of the bibliometric analysis point to the need to expand business proposals to different economic and cultural contexts, since they are mainly concentrated in developed countries. The content analysis presented a framework with guidelines, subguidelines, and facilitators, classified according to the PSS dimensions: provider, offer, and consumer. Thus, 111 facilitators were identified, and 26 subguidelines and 11 guidelines were built, demonstrating the contribution of the Circular Economy for the minimization of barriers in the implementation of the Product-Service System. The research highlights that approximately 73% of the facilitators correspond to the provider dimension, emphasizing the need to promote organizational changes and to adapt business proposals, adding value to the solution or to the results. However, the research highlights the need for the involvement of all stakeholders, where the customer must also promote changes in habits and an awareness of sustainable development. Finally, it is emphasized that this research provides a theoretical basis for the development of empirical studies, applying and expanding the knowledge of the interrelationship between Circular Economy and Product-Service Systems.

A conceptual model to support sustainable Product-Service System implementation in the Brazilian agricultural machinery industry

Many studies demonstrate the potential contribution of the Product-Service System (PSS) to the development of sustainable management practices and Circular Economy (CE). However, companies face challenges when implementing PSS, and few studies examine how the manufacturing industry can develop sustainable offerings by adopting product-oriented PSS, especially in the agricultural machinery industry. Thus, we investigated how this industry perceives environmental sustainability and product-oriented PSS, and we identified practices that can be implemented to qualify the life cycle management of their products. Based on that, we proposed a conceptual model for implementing product-oriented PSS in the agricultural machinery sector. An exploratory research was carried out in two steps: a systematic literature review complemented by multiple case studies. We list the possibilities of product-oriented PSS services that can be offered for traditional industries to guide their business towards sustainable practices. In parallel, we have identified good practices and benefits of adopting product-oriented PSS. Subsequently, we conducted a diagnosis on sustainability and product-oriented PSS in agricultural machinery companies. Although companies already offer some services to customers, our results show ample opportunities for improvement, especially to offer product-oriented PSS considering socio-environmental issues. In this sense, the conceptual model proposed allows industries to expand their understanding and adherence to product-oriented PSS. As contributions, we demonstrate how the agricultural machinery industry can develop sustainable practices and promote CE through product-oriented PSS implementation.

The Use of Business Model Canvas in the Design and Classification of Product-Service Systems Design Methods

The implementation of Product-Service Systems (PSS) calls for the modification of existing business models. The goal of the paper is to work out an analysis and a classification of PSS design methods used in the development of new business models. Using a systematic review method, we identified 60 PSS design methods. Following the examination of the major business model templates, we selected the Business Canvas Model for further studies. Then, coding rules were adopted to specify what elements of the Business Model Canvas impacts individual PSS design methods and an analysis was performed. In the final stage, methods were broken down by Business Model Canvas domains. Various PSS design methods presented in the literature address different areas of Business Model Canvas. The available PPS methods can be classified into three main groups: Group 1—including infrastructure and offering; Group 2—including infrastructure, offering and customers; and Group 3—including infrastructure, offering, customers and finance. Very few methods consider areas such as Key Partners, Customer Segments, Cost Structure and Revenue Streams. Nevertheless, there is no PPS design method that would address all of Business Model Canvas building blocks. The paper discusses PSS design in business model context. Classification of PSS design methods was proposed together with new possibilities to develop business models based on this classification. The proposed approach illustrates the combination of PSS design methods applied in food processing and agricultural machines industry.

Achieving Circularity through Novel Product-Service Systems in the Mining Industry: An Opportunity for Circularity

The evolution toward sustainable mining can be achieved by implementing circular economies (CEs), and one way forward is via product-service systems (PSSs). However, applying PSSs in the mining industry is an area with little extant research. We seek to contribute to CE and sustainability research by proposing a model by which mining companies can achieve circularity through their suppliers: something which has not yet been explored. First, we present a critical literature review of published papers about the barriers and benefits in industries where servitization or PSS has been applied. We discuss barriers impeding PSS implementation in the mining industry, along with related concepts including CE and PSSs in digital technologies. With this study we hope to draw more discussion to the topic of PSSs in the mining industry and provide useful guidelines to academics and industry professionals for PSS implementation in mining: an important step toward circularity.

A method for identifying the relationship between PSS features and barriers based on Bayesian networks

Product-service systems (PSS) are gaining traction as a means of achieving sustainability. To successfully implement PSS, it is necessary to estimate the barriers that may arise in the implementation of the PSS at the design stage, and to take measures to increase social acceptability in advance. On the other hand, to realize this, it is essential to understand the relationship between the characteristics of PSS and the barriers that may arise in its implementation. However, existing research only investigates PSS features and barriers individually, and the relationship between them has not been fully understood. This paper thus aims to grasp the relationship between PSS features and barriers by collecting case study data through a literature survey and constructing a Bayesian network based on the data. As a result, the relationship between PSS features and barriers was represented as a graphical model and a probability table. The result is expected to assist PSS designers in estimating the expected barriers based on PSS features during the design phase, thereby contributing to successful PSS implementation.

A study of the rebound effect on the product-service system: Why should it be a top priority?

The increasing intensity of competition, environmental pressures and diversification of customer demands call for integrated solutions, and this circumstance has propelled the product-service system (PSS) into a central position to satisfy consumer requirements and sustainability agendas. However, it is essential to emphasise that not all shifts toward PSS result in sustainability. Even when well-designed, PSS could generate unwanted side effects, usually referred to as rebound effects. Unfortunately, the study of rebound effects within PSS is constrained by the classical concept, which is concerned only with energy efficiency and its environmental impact. It is crucial to develop transitional awareness in observing the rebound effect on PSS by performing an in-depth assessment. This study aims to expand the discussion about the potential rebound effect within the PSS context and propose a framework for the PSS-rebound effect from a life cycle perspective. This study classifies and comprehensively depicts the rebound effect inside the PSS concept, highlighting the various features and cases/types of PSS based on current literature. Then a method is proposed to identify types of rebound effects, their causes and their period of occurrences within the product’s life cycle based on three sustainability characteristics. Case studies are provided to illustrate the application of the framework to identify the PSS-rebound effect relationship from the life cycle perspective. The result is beneficial for identifying potential rebound effects associated with PSS implementation to foster sustainability.

Towards territorial product-service systems: A framework linking resources, networks and value creation

While many models for sustainable product-service systems (PSS) integrate the multi-actor perspective, few provide insights on how the territory in which actors implement the system influences its sustainability. This paper explores the implementation of a territorial PSS at a city or regional scale as a means to structuring value networks and enhancing its sustainability potential. The research combines a multidisciplinary literature review with two exploratory sustainable PSS cases in packaging and cloth baby diapers. The paper proposes a framework explaining how sustainable PSS providers develop territorial networks that consider a diversity of actors from civil, industrial, and public spheres to mobilize resources for value creation at organizational, network, and territorial levels. It identifies contextual factors, such as proximity, social embeddedness of relations, and the visions that influence the consolidation and sustainability of the territorial PSS networks. The empirical cases show the development of territorial networks enhances embed social relations among actors and enables the sustainable PSS concept to adapt to locally articulated sustainability principles and priorities. The paper discusses the implications of this approach for PSS for sustainability managers and designers. The study fills a gap by showing the importance of integrating a diversity of territorial actors as a pre-condition for PSS to contribute to the sustainability transitions and resilience of territories. Future research may validate the proposed framework and focus on identifying opportunities and barriers for the territorial PSS approach in different contexts such as industries and company sizes.

Preparing for smart product-service system (PSS) implementation: an investigation into the Daimler group

This paper aims at investigating the main factors behind advancing the integration of products and services in the Brazilian subsidiary of Mercedes-Benz (MBB), and how Smart PSS has been perceived by other business units of the Daimler Group. We conducted an in-depth qualitative single-case study research to investigate the critical steps preceding the implementation of a smart PSS. The study was based on the main tactical areas of a PSS business model which was applied to MBB’s possible integration of their equipment (called Fleetboard) in a smart PSS solution. The findings demonstrate that the internal culture of a product-centric automotive manufacturing firm can prohibit the sales of services, even when service technologies are available. On the other hand, financial pressures can create the sense of urgency required for the firm to appreciate the necessity of change. The process of change is too complex, since it requires capabilities in key areas such as the law, marketing, networking/partnerships, design, sustainability, and organisation and human resources management. Our study shows how the company considers alternative options in order to reduce organisational barriers, develop partnerships and legal competence to offer PSS contracts, as well as seeking alignment between design, marketing and sustainability requirements.

Evaluating the interactions of multi-dimensional value for sustainable product-service system with grey DEMATEL-ANP approach

Thus far, researches related to sustainable product-service system (PSS) largely investigate the interrelationships of factors with a focus on consumer, and concentrate on the requirement identification for PSS design; few address the interactions of multiple value from different stakeholders in the sustainable PSS implementation. In this paper, the multi-dimensional value elements for sustainable PSS are recognized to maximize the mutual value among stakeholders and realize sustainable benefits in PSS, considering customer value perceptions, customer service requirements, sustainability potentials and partnership establishment simultaneously. Then the interdependencies of value elements are prioritized with a hybrid model, which incorporates Decision-Making Trial and Evaluation Laboratory (DEMATEL), Analytical Network Process (ANP) and grey theory. In accordance with cause-effect relationship, strength of interactions, as well as influential weight of criteria, the predominant value factors and the improvement direction for sustainable PSS are identified. The results of the present work can provide the decision-makers in manufacturing enterprise with theoretical guideline to implement sustainable PSS successfully from the perspective of multi-dimensional value coordination among different stakeholders.

A Bibliometric Analysis of Product-Service Systems’ Design Methodologies: Potential Root-Cause Identification of PSS’ Failures

Product-service system (PSS) innovation is acknowledged as a promising way to achieve sustainability through better exploitation of given resources. Nevertheless, PSS implementation is also described as increasing failure risk for companies. Despite that authors have identified paradoxical situations as a source of failure while implementing PSS, few researches have focused on understanding the origin of these paradoxes. In this review, we aim at understanding how methodologies cope with the challenges of designing PSS throughout the complete company perimeter as well as how to manage interactions within this perimeter to avoid potential paradoxes and thus failure. To do so, we will rely on the business model innovation literature and, more specifically, the business model canvas to define and discretize the company perimeter. As for the interactions and their imbrication regarding paradoxes appearance, we will refer to Putnam et al. theory to gain deeper understanding of paradoxes-appearance mechanism. Our bibliometric strategy brought us to analyze 14 international articles via our graph, enabling us to highlight that some poles’ interactions during design are partly unaddressed, resulting potentially in the creation of tension sources and therefore potential paradoxes and ultimately implementation failure. Considering this, future research works could focus on defining all significant interactions to consider while designing a PSS as well as the typology of answers to engage while facing tensions. In that respect, these works could provide actionable solutions to lower PSS implementation-failure risk, thus benefiting those who wish to achieve better sustainability through PSS.

Perception value of product-service systems: Neural effects of service experience and customer knowledge

Digital trends in product-service system (PSS) development focus on developing win-win solutions for both companies and customers, particularly when considering human behavior issues. It is useful for the PSS provider to know the PSS value creation mechanism when customers are buying and utilizing a PSS, particularly in the service-dominant logic (SDL) and cognitive neuroscience perspective. This study solved the PSS implementation that satisfied the demands of both customers and manufacturers and the value cocreation mechanism during product and service configuration with the impacts of consumer learning and the service experience. The proposed neuroscience methodology is based on an ERP (event-related potential) experiment using PSS stimuli, representing the perception value creation process during customer decision making and the PSS configuration process. The effectiveness of the service experience is more important than customer knowledge during PSS value perception due to positive emotions with pleasant memories for the service experience and the conflicting cognition process of customer learning. The combination of service science and neurology may measure and observe human behavior and psychology through the brain science method and effectively solve the human factors in service science. The findings suggest a more objective and personalized understanding of PSS value perception, particularly the practical requirements of a resulted-oriented PSS and an application-oriented PSS.

A Strategic Planning Method to Guide Product—Service System Development and Implementation

The societal and environmental crises in recent decades have promoted a social awareness of existing challenges to sustainability. While product–service systems (PSS) are considered a promising way to achieve a sustainable future, PSS features also create barriers that hinder the widespread implementation of PSS in society. Recent studies have therefore increasingly focused on the challenges to PSS implementation. However, the existing literature fails to facilitate a strategic plan or practical guide for PSS design activity despite taking into account the importance of visioning in PSS design. This paper, therefore, proposes a strategic planning method for PSS development and implementation by combining technology roadmap and transition scenarios. To illustrate its applicability and validity, the proposed approach is applied to a PSS development project for solving wildlife damage in a suburban city of Tokyo. The case study was conducted as a participatory workshop, which involved relevant stakeholders to develop a roadmap toward a sustainable future PSS vision based on the proposed method. The result of this application demonstrates that the proposed approach enables the formulation of a long-term PSS design strategy, while comprehensively converging the perspectives and knowledge of each stakeholder participating in the PSS development.