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Building smart product-service systems capabilities for circular supply chains in the Industry 4.0 era

Surajit Bag, Shivam Gupta, Hau-Ling Chan () and Ajay Kumar ()
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Surajit Bag: PULV - Pôle Universitaire Léonard de Vinci
Shivam Gupta: NEOMA - Neoma Business School
Hau-Ling Chan: POLYU - The Hong Kong Polytechnic University [Hong Kong]
Ajay Kumar: EM - EMLyon Business School

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Abstract: A smart product-service system is an integrated digital infrastructure that brings together products and services to provide clients with a full range of options. A smart product-service system is a crucial capability that enhances collaboration among several parties in a supply chain and gives businesses valuable insights into performance. This study investigates (a) the zero-level capabilities (also known as organizational capabilities) that influence dynamic capabilities (i.e., smart circular product-service systems capabilities) building in the Industry 4.0 era while environmental dynamism acts as a moderator, and (b) how the smart circular product-service systems capabilities can support firms' (financial and environmental) performance. Based on the data collected from the manufacturers who have been actively involved in smart circular product-service system based projects, our findings reveal that three zero-level capabilities (i.e., product lifetime database creation capabilities, analytics and business intelligence capabilities and actuating capabilities) are crucial for building dynamic capabilities (i.e., smart circular product-service systems capabilities) in a volatile business environment. Besides, we also highlight how these capabilities can positively affect firms' financial and environmental performance.

Keywords: Smart Product-Service Systems; Industry 4.0; Empirical Study; Digital Technologies; Circular Supply Chains (search for similar items in EconPapers)
Date: 2024-08-01
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Citations: View citations in EconPapers (1)

Published in Transportation Research Part E: Logistics and Transportation Review, 2024, 188, pp.103625. ⟨10.1016/j.tre.2024.103625⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05531907

DOI: 10.1016/j.tre.2024.103625

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