Towards product-service system oriented to circular economy: A systematic review of value proposition design approaches

Sânia da Costa Fernandes*, Daniela C. A. Pigosso, Tim C. McAloone, Henrique Rozenfeld

*Corresponding author for this work

Research output: Contribution to journalReviewResearchpeer-review


Based on service-based value propositions, product-service systems (PSS) are commonly understood as a means to realize circular economy. However, the design of value propositions of circular product-service system is not widely investigated and understood in literature, leading to the lack of guidance for the incorporation of circularity into product-service system design. This study presents a systematic analysis of 46 approaches that can support the design of circular and/or product-service system value propositions in the context of business model innovation. The research methodology is based on a three-step systematic literature review, followed by a critical analysis grounded on content analysis procedures. The 46 approaches identified were classified according to their theoretical and practical characteristics (development level, nature of data, representation style, process type, actors’ perspective, and purpose). The results point to a heterogeneity of approaches, although most are focused on the development of business models in a broader scope, with no clear boundaries on value proposition design. A critical analysis is presented in relation to the interface of the design scope of value propositions oriented to circular economy and product-service system. The paper proposes guiding principles that can support effective development of value propositions of circular product-service system at the early stages of the business modeling. A research agenda is outlined and indicates key trends oriented towards the development of an integrated and systemic approach based on a multiple stakeholder perspective, definition of design options of value propositions of circular product-service system, exploitation of perceived value, and more quantitative and empirical studies.
Original languageEnglish
Article number120507
JournalJournal of cleaner production
Number of pages16
Publication statusPublished - 2020


  • Business model innovation
  • Value proposition design
  • Circular economy
  • Product-service system
  • Circular product-service system

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