Cited by 150Sustainable Supply Chain ManagementService and Product InnovationEnvironmental Sustainability in Business

The DOI matches its Crossref record; 56 of the 56 references it cites were found in a registry or an index; 28 of the 55 sources its claims cite were checked for support.

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

Open access
P. P. Pieroni, Marina, C. McAloone, Tim, C. A. Pigosso, Daniela·2019·Sustainability

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.

Overview

AI snapshot

Written from the paper’s full text.

TL;DR

This paper applies a previously developed CE-Driven Business Model Configurator, embedded in a CE-Oriented Business Model Innovation process, in action research with two Nordic furniture manufacturers to design and assess product-service system business models for circular economy. It concludes that PSS business models qualify as "CE-oriented" only when they simultaneously deliver superior customer value, economic growth, and resource decoupling, and that such models tend to be niche solutions.

Key findings

  • Configuring PSS business models for CE requires fulfilling simultaneous conditions — superior customer value, economic growth, and resource decoupling potential — with trade-offs between them being inevitable; a framework outlining these conditions and trade-offs is presented as a key contribution.
  • CE-oriented PSS business models are often (but not exclusively) "niche solutions" fulfilling specific needs and customer segments, and are more likely to flourish with certain product types, segments, or geographical locations; a "Market Potential" condition was added to the superior-customer-value category as a result.
  • Resource decoupling potential was estimated at 20–45% for Ope's concept (utility indicator, due to no need to produce new products), 7–28% for Vestre's configuration 1, and 14–28% for configuration 2 (utility and longevity indicators, due to life-extension and no need to produce new products).
  • Economic assessments showed delayed breakevens: Ope's concept was profitable but had a 10-year breakeven; Vestre's configuration 1 had an acceptable pay-back of around 6 years, while configuration 2 had a delayed pay-back of around 9 years. Ope's customer value criterion was not fulfilled (perceived sacrifices exceeded benefits), leading to a redesigned concept scoped to event spaces.
  • Common barriers confirmed from prior literature included breakeven delays with negative initial cash flow for access/use-oriented PSS, customer demand for all-inclusive furniture portfolios, long usage time and technical simplicity of office furniture, and geographically widespread customers; favorable conditions included customers with short-term project work and additional services improving PSS attractiveness.

Methods

  • Action research (following Mathiassen's guidelines and a four-step cyclical process) with two small Norwegian furniture manufacturers: Ope (AR cycle A, July 2018, Stavanger) and Vestre (AR cycle B, January 2019, Oslo), selected for being Nordic furniture manufacturers intending to explore CE transformation via PSS and willing to provide access and feedback.
  • Workshops of 3–4 hours over roughly one month per company, with up to six participants including key decision-makers; the CE-Driven Business Model Configurator's four modules were applied (Modules 1–2 in the "sense" stage, Modules 3–4 in the "seize" stage), supported by tools such as the Circular Strategies Scanner, pattern cards, Customer/User Journey Map, and BM visualization frameworks.
  • Data collection comprised a researcher journal, workshop recordings, and structured evaluation questionnaires (multiple-choice and open-ended, 4-point Likert satisfaction scale) answered by participants after each workshop; data were analyzed to evaluate the process model and tool and identify improvement opportunities. The configurator's patterns were compiled from literature and retrospective analysis of more than 150 cases across six industry sectors, with approximately 35 furniture cases; in the furniture sector, 13 of 41 patterns address collaborations.

Limitations

  • Stated by the paper: the key limitations are the sample (number of companies) and time constraints for generalizing assumptions and verifying long-term success of the CE-oriented PSS business models; future empirical work is needed with a broader group of manufacturing companies in different organizational contexts and industry sectors.
  • Stated by the paper: both companies will continue experiments, so adjustments or selection of new concepts may occur (e.g., Ope decided not to focus on "event solutions" and is instead experimenting with a leasing scheme for two active customers), requiring a new round of interviews to explore the implementation stage.
  • Stated by the paper: the CE-Driven Business Model Configurator still requires further development (e.g., a more flexible/dynamic software, adjustment of the level of information in design options, refinement of the logic for suggesting pattern configurations), and in its current version is limited to six industry sectors.
  • Evident from the text: the assessment of customer value is qualitative and based on perceived benefits and sacrifices, and the resource decoupling figures are described as "potential" estimates rather than measured outcomes; the second AR cycle had as few as one company participant in workshops 2 and 3, with internal validations conducted afterward.

Model-written summary. Check it against the paper before relying on it.

Integrity signals

Registry

Crossref · 10.3390/su11133727

Cites

56 of 56 references verified0 citation errors · 0 not checkable

Statistics

Nothing to recompute.

Verification

Claims the paper makes

61 Own interpretation · 38 No basis given · 35 Own result · 9 No full text of the sources · 7 Supported · 7 Partly supported · 4 Couldn’t confirm · 3 Supported so far · 3 Sources not found · 3 Own method · 1 Not supported · accuracy not yet measured

Show all 58 claims

  • Probably not a substantial claim. 89
  • It may state two separate claims as one. 48
  • The quote only partly states this claim. 4
113 of 113
  • The paper relies on this without support.

    The two Nordic furniture manufacturers are representative enough that findings about PSS business models for circular economy can be generalized to other companies.

    “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.”
    “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 l”
  • The paper relies on this without support.

    The CE-Driven Business Model Configurator and its patterns are valid tools for designing and assessing PSS business models for circular economy.

    “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.”
  • The paper relies on this without support.

    The action research method with workshops and questionnaires can reliably evaluate the usefulness of the process model and tool.

    “Data collection methods to evaluate the application of the CE-Oriented BMI Process and the CE-Driven Business Model Configurator comprised a journal with the researcher's observations and post reflection; recordings of the workshops to enable the compilation of comments and verbal feedback; and structured evaluation questionnaires standardized for all companies and answered by the participants at”
  • The paper relies on this without support.

    The furniture sector's characteristics are relevant to the study's conclusions about PSS business models for circular economy.

    “The furniture sector was selected in this study due to its economic representativeness for the European Union (EU) and Nordic markets, the environmental challenges and potential opportunities in a CE context.”
  • The paper relies on this without support.

    Venue owners are not necessarily the owners of the modular furniture/materials used for creating stands at events.

    “currently, the venue owners are not necessarily the owners of modular furniture/materials for space creation of stands.”
  • The paper relies on this without support.

    The product could be used or refurbished for 10 cycles.

    “could be used/refurbished for 10 cycles, but it is reaching 2 cycles in this configuration”
  • The paper relies on this without support.

    Market requirements regarding the time taken for products to be returned back and made available for new contracts limit the number of use cycles the product reaches in this configuration.

    “imposed by market requirements regarding the time taken for products to be returned back and made available for new contracts”
  • The paper relies on this without support.

    Manufacturing companies planning to engage in CE through PSS need guidance on where and how to start.

    “This can benefit manufacturing companies that are planning to engage in CE through means of PSS and need to define where and how to start.”
  • The paper relies on this without support.

    The configurator and the findings derived from two Nordic furniture manufacturers transfer to manufacturing companies and sectors beyond the two case companies.

    “Moreover, since the tool incorporates the learnings from the two aforementioned key findings, it can help manufacturing companies to focus on problem-solving for CE, instead of only trying out any type of PSS concept (which are not necessarily impactful for CE).”
  • The paper relies on this without support.

    Participants' questionnaire responses and testimonials are a valid indicator of the configurator's usefulness.

    “Formal feedback provided by individual participants in questionnaires indicates their satisfaction with the obtained results, with testimonials indicating that the configurator “made the process easier” and “has clarified and confirmed many choices that have been based on assumptions earlier.””
  • The paper relies on this without support.

    The binding of a 10-year contract should not be critical for customers.

    “Sacrifices: binding of 10-year contract (should not be critical).”
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Self-check

Percentages, sums and reported differences re-computed from the paper’s own numbers.

Each contradiction between two passages listed here was confirmed by an independent check.

3 of 3

Citations

Cites

Research works printed but not linked: 2

  1. Ritchey, T. (, January July). General Morphological Analysis: A general method for non-quantified modelling. Proceedings of the16th EURO Conference on Operational Analysis, Brussels, Belgium.
  2. Antikainen, M., Lammi, M., and Paloheimo, H. (2017, January 18–21). Creating value for consumers in CE-Tools as a service Creating value for consumers in CE-Tools as a service. Proceedings of the XXVIII ISPIM Innovation Conference—Composing the Innovation Symphony, Vienna, Austria.

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Metadata

Authors
P. P. Pieroni, M., C. McAloone, T., & C. A. Pigosso, D.
Affiliations
Technical University of Denmark (DTU), Department of Mechanical Engineering, Nils Koppels Allé 404, DK-2800 Kgs. Lyngby, Denmark
Venue
Sustainability
Publisher
MDPI AG
Published
2019-07-08
Volume
11
Issue
13
Pages
3727
ISSN
2071-1050 (ISSN-L)
OpenAlex
W2955607550
Cited by
150
References
55
Citations by year
2026: 21 · 2025: 18 · 2024: 21 · 2023: 24 · 2022: 29 · 2021: 16 · 2020: 17 · 2019: 4
FWCI
25.34
Type
journal article
Language
en
Open access
Locations
  • Sustainability (publishedVersion, cc-by)
  • RePEc: Research Papers in Economics (submittedVersion)
  • DOAJ (DOAJ: Directory of Open Access Journals) (submittedVersion, cc-by-sa)
  • Technical University of Denmark, DTU Orbit (Technical University of Denmark, DTU) (submittedVersion, other-oa)
Funders
  • NordForsk (83144)
  • Nordic Innovation (83144)
  • Nordic Energy Research (83144)
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 › Environmental Sustainability in Business
Keywords
product-service systems, circular economy, business model configuration, customer value, economic decoupling, resource decoupling, furniture industry, resource efficiency

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