Configuring New Business Models for Circular Economy through Product–Service Systems

Marina P. P. Pieroni, Tim C. McAloone and Daniela C. A. Pigosso
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Marina P. P. Pieroni: Technical University of Denmark (DTU), Department of Mechanical Engineering, Nils Koppels Allé 404, DK-2800 Kgs. Lyngby, Denmark
Tim C. McAloone: Technical University of Denmark (DTU), Department of Mechanical Engineering, Nils Koppels Allé 404, DK-2800 Kgs. Lyngby, Denmark
Daniela C. A. Pigosso: Technical University of Denmark (DTU), Department of Mechanical Engineering, Nils Koppels Allé 404, DK-2800 Kgs. Lyngby, Denmark

Sustainability, 2019, vol. 11, issue 13, 1-22

Abstract: Product—service systems (PSSs) are often outlined as potential enablers of new business models for circular economy. However, not all business models based on product-service systems have superior circularity potential. This research demonstrates how the application of a previously developed business model configurator for circular economy can support the design and assessment of customer value, economic and resource decoupling potential for product-service system business models in practice. By applying action research in two Nordic manufacturing companies from the furniture sector, different business model concepts based on product-service systems were proposed and assessed. Results indicate positive uptake by companies regarding the usefulness of the obtained outcomes. This research identified two key findings about ‘product-service system business models for circular economy’: (i) their configuration should fulfil certain simultaneous conditions—i.e. superior customer value, economic growth, and resource decoupling potential — to contribute to circular economy; and (ii) they are often ‘niche solutions’ , fulfilling specific needs and customer segments, and more likely to flourish with certain types/characteristic of products, segments or geographical locations. Lastly, a framework outlining the conditions and trade-offs for assessing the circularity potential of business models based on product-service systems is introduced as one of the key contributions.

Keywords: business model innovation; circular economy; product-service system (PSS); configuration; action research (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (31)

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