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Toward a policy landscape to support the product‐as‐a‐service design process for a circular economy

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Neramballi, Abhijna, Milios, Leonidas, Sakao, Tomohiko, Matschewsky, Johannes·2024·Journal of Industrial Ecology
DOI 10.1111/jiec.13535
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Abstract

Despite the widely recognized potential of product‐as‐a‐service (PaaS) business models to contribute to the circular economy, many industrial case studies have reported that several systemic factors tend to hinder product manufacturers from effectively designing such solutions. More specifically, factors such as linear value chains, organizational structures, and market and financial conditions tend to restrict the freedom of product manufacturers to design circular PaaS solutions effectively. In this article, we take a novel approach to advance the body of knowledge concerning the interactions between policies and circular PaaS designing. We first explore the potential of the existing policy landscape to support designing for a circular economy in the manufacturing industry. The results suggest that the existing policy landscape is primarily focused on regulating product design outcomes and is thus deemed unsuitable for supporting circular PaaS designing. Subsequently, we investigate the literature to uncover how internal and external systemic factors may hinder the implementation of the key facets of circular PaaS designing in the manufacturing industry. Based on these findings, we propose a prospective policy framework that includes a mix of complementary policy interventions that systemically target the identified internal and external factors to support the implementation of the key facets of circular PaaS designing.

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  • Firm-centric value capture mechanisms are only viable if they successfully facilitate a shift in the consumer's role from a passive end-user to an active partner in value co-creation.

    “However, these firm-centric value capture mechanisms are only viable if they successfully facilitate a shift in the consumer's role from a passive end-user to an active partner in value co-creation (Neramballi et al. 2024).”

    From Integrating Life Cycle Assessment, Monetised Externalities and Value Alignment for Strategic Reconfiguration of Circular Business Models: The Case of Smartphones (2026) · cites this paper as Neramballi et al. 2024

    Section 3.3.1 (p. 4) says that developing circular PaaS value propositions requires a shift from unidirectional value delivery to co-creation with customers. Section 3.5.1 (p. 5) discusses value-capture elements, but does not say that firm-centric value-capture mechanisms are viable only if they bring about that shift. (LLM, conf=0.84)

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  75. Howtocite this article: Neramballi, A., Milios, L., Sakao, T., & Matschewsky, J. (2024). Toward a policy landscape to support the product-as-a-service design process for a circular economy. Journal of Industrial Ecology , 28 , 1045-1059. https://doi.org/10.1111/jiec.13535 https://doi.org/10.1111/jiec.13535

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Authors
Neramballi, A., Milios, L., Sakao, T., & Matschewsky, J.
Affiliations
  • Linköping University (SE)
  • Lund University (SE)
Corresponding author
Neramballi, Abhijna
ORCID
Venue
Journal of Industrial Ecology
Publisher
Springer Science and Business Media LLC
Published
2024-07-26
Volume
28
Issue
5
Pages
1045-1059
ISSN
  • 1088-1980 (ISSN-L)
  • 1530-9290
DOI
10.1111/jiec.13535
OpenAlex
W4401025023
Cited by
24
References
3
Citations by year
2026: 13 · 2025: 10 · 2024: 1
FWCI
8.09
Type
journal article
Language
en
Open access
Licence
Locations
  • Journal of Industrial Ecology (publishedVersion, cc-by)
  • KTH Publication Database DiVA (KTH Royal Institute of Technology) (submittedVersion, other-oa)
  • Lund University Publications (Lund University) (submittedVersion)
Funders
Stiftelsen för Miljöstrategisk Forskning (2014/16)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Sustainable Supply Chain Management
  • Social Sciences › Business, Management and Accounting › Marketing › Service and Product Innovation
  • Social Sciences › Business, Management and Accounting › Marketing › Sharing Economy and Platforms
Keywords
product-as-a-service, circular economy, policy framework, circular design, business models, manufacturing industry, systemic barriers, organizational structure, policy interventions, design regulation

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