Configuring New Business Models for Circular Economy through Product–Service Systems
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 develop...
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doaj-65c8ebd24cee47539f3b91e97505e12f2020-11-24T21:54:38ZengMDPI AGSustainability2071-10502019-07-011113372710.3390/su11133727su11133727Configuring New Business Models for Circular Economy through Product–Service SystemsMarina P. P. Pieroni0Tim C. McAloone1Daniela C. A. Pigosso2Technical University of Denmark (DTU), Department of Mechanical Engineering, Nils Koppels Allé 404, DK-2800 Kgs. Lyngby, DenmarkTechnical University of Denmark (DTU), Department of Mechanical Engineering, Nils Koppels Allé 404, DK-2800 Kgs. Lyngby, DenmarkTechnical University of Denmark (DTU), Department of Mechanical Engineering, Nils Koppels Allé 404, DK-2800 Kgs. Lyngby, DenmarkProduct—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<i>—</i>to contribute to circular economy; and (ii) they are often <i>‘niche solutions’</i>, 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.https://www.mdpi.com/2071-1050/11/13/3727business model innovationcircular economyproduct-service system (PSS)configurationaction research |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Marina P. P. Pieroni Tim C. McAloone Daniela C. A. Pigosso |
spellingShingle |
Marina P. P. Pieroni Tim C. McAloone Daniela C. A. Pigosso Configuring New Business Models for Circular Economy through Product–Service Systems Sustainability business model innovation circular economy product-service system (PSS) configuration action research |
author_facet |
Marina P. P. Pieroni Tim C. McAloone Daniela C. A. Pigosso |
author_sort |
Marina P. P. Pieroni |
title |
Configuring New Business Models for Circular Economy through Product–Service Systems |
title_short |
Configuring New Business Models for Circular Economy through Product–Service Systems |
title_full |
Configuring New Business Models for Circular Economy through Product–Service Systems |
title_fullStr |
Configuring New Business Models for Circular Economy through Product–Service Systems |
title_full_unstemmed |
Configuring New Business Models for Circular Economy through Product–Service Systems |
title_sort |
configuring new business models for circular economy through product–service systems |
publisher |
MDPI AG |
series |
Sustainability |
issn |
2071-1050 |
publishDate |
2019-07-01 |
description |
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<i>—</i>to contribute to circular economy; and (ii) they are often <i>‘niche solutions’</i>, 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. |
topic |
business model innovation circular economy product-service system (PSS) configuration action research |
url |
https://www.mdpi.com/2071-1050/11/13/3727 |
work_keys_str_mv |
AT marinapppieroni configuringnewbusinessmodelsforcirculareconomythroughproductservicesystems AT timcmcaloone configuringnewbusinessmodelsforcirculareconomythroughproductservicesystems AT danielacapigosso configuringnewbusinessmodelsforcirculareconomythroughproductservicesystems |
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