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

Marina P. P. Pieroni*, Tim C. McAloone, Daniela C. A. Pigosso

*Corresponding author for this work

    Research output: Contribution to journalJournal articleResearchpeer-review

    486 Downloads (Orbit)

    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.
    Original languageEnglish
    Article number3727
    JournalSustainability
    Volume11
    Issue number13
    Number of pages22
    ISSN2071-1050
    DOIs
    Publication statusPublished - 2019

    Keywords

    • Business model innovation
    • Circular economy
    • Product-service system (PSS)
    • Configuration
    • Action research

    Fingerprint

    Dive into the research topics of 'Configuring New Business Models for Circular Economy through Product–Service Systems'. Together they form a unique fingerprint.
    • CIRCit: Circular Economy Integration in the Nordic Industry for enhanced sustainability and competitiveness

      McAloone, T. C. (PI), Pigosso, D. C. A. (Project Manager), Blomsma, F. (Project Participant), Pieroni, M. (PhD Student), Kravchenko, M. (PhD Student), Frederiksen, T. B. (Project Participant), Jönbrink, A.-K. (Project Participant), Hildenbrand, J. (Project Participant), Dahlström, J. (Project Participant), Shahbazi, S. (Project Participant), Li, J. (Project Participant), Kristoffersen, E. (PhD Student), Li, Z. (Project Participant), Wiik, C. (Project Participant) & Nielsen, K. D. (Project Participant)

      01/02/201731/12/2020

      Project: Research

    Cite this