PSS Strategic Alignment: Linking Service Transition Strategy with PSS Business Model

Mar’atus Sholihah, Tatsuru Maezono, Yuya Mitake and Yoshiki Shimomura
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Mar’atus Sholihah: Department of System Design, Tokyo Metropolitan University, Tokyo 191-0065, Japan
Tatsuru Maezono: Department of System Design, Tokyo Metropolitan University, Tokyo 191-0065, Japan
Yuya Mitake: Department of System Design, Tokyo Metropolitan University, Tokyo 191-0065, Japan
Yoshiki Shimomura: Department of System Design, Tokyo Metropolitan University, Tokyo 191-0065, Japan

Sustainability, 2019, vol. 11, issue 22, 1-30

Abstract: One of the most promising business models towards economic circularity is product-service system (PSS). Despite its great potential benefits, shifting the traditional business model of a manufacturer into PSS business model commonly refers to service transition and triggers inconsistencies between strategic direction and organization arrangement at an operational level. The absence of alignment between the service transition strategy and the PSS business model is greatly emphasized as a crucial enabler, risk factor and key success factor of the service transition. However, limited academic works have concretely contributed to the strategic alignment. Through a systematic literature review, this paper proposes a PSS business alignment that enables the manufacturer to identify the strategic objective of its service transition strategy and align it with PSS business model. The theoretical version of the proposed framework is redefined and redeveloped through two cycles of action research involving 11 Japanese companies.

Keywords: strategic alignment; service transition; product-service system; strategy; strategic objective; strategy map; business model (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 (4)

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