The Product–Service System Supply Chain Capabilities and Their Impact on Sustainability Performance: A Dynamic Capabilities Approach

Dian Retno Sari Dewi (), Yustinus Budi Hermanto, Elizabeth Tait and Martinus Edy Sianto
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Dian Retno Sari Dewi: Industrial Engineering Department, Widya Mandala Catholic University, Surabaya 60114, Indonesia
Yustinus Budi Hermanto: Faculty of Economics, Darma Cendika Catolic University, Surabaya 60117, Indonesia
Elizabeth Tait: Information Studies, Charles Sturt University, Parramatta, NSW 2650, Australia
Martinus Edy Sianto: Industrial Engineering Department, Widya Mandala Catholic University, Surabaya 60114, Indonesia

Sustainability, 2023, vol. 15, issue 2, 1-24

Abstract: In response to competition and other market challenges, many consumer manufacturing companies are offering Product–Service Systems (PSSs) in order to improve their sustainability performance. This paper aims to examine the relationship between the PSS supply chain (SC) capabilities and sustainability performance. It empirically investigates a framework that hypothesises the impact of seven PSS SC capabilities on sustainability performance. Data were collected from 447 official motorcycle service partners in Indonesia and analysed using structural equation modelling. The findings reveal that innovative service delivery and sustainable product–service capability positively affect sustainability performance, whereas partner development, reflexive control, and re-conceptualisation positively affect sustainable product–service capability. The results also validate that collaboration and knowledge assessment do not directly affect sustainability performance. A contribution of this study is the innovative use of quantitative methods to provide empirical evidence that the PSS SC capabilities can contribute to sustainability performance, directly and indirectly. It also broadens the utilisation of Dynamic Capabilities (DCs) in PSS SC research. The findings also guide managers and decision-makers in the implementation of the PSS SC capabilities required to enhance sustainability performance.

Keywords: Product–Service Systems; supply chain capabilities; sustainability performance; dynamic capabilities (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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