A Product Service-System (PSS) is an integrated combination of products and services. This western concept embraces a service led competitive strategy, environmental sustainability, and the basis to differentiate from competitors who simply offer lower priced products. This paper aims to report the state-of-the-art of PSS research by presenting a clinical review of literature currently available on this topic. The literature is classified and the major outcomes of each study are addressed and analysed.On this basis, this paper defines the PSS concept, reports on its origin and features, gives examples of applications along with potential benefits and barriers to adoption, summarises available tools and methodologies, and identifies future research challenges. AbstractA Product Service-System (PSS) is an integrated combination of products and services. This western concept embraces a service led competitive strategy, environmental sustainability, and the basis to differentiate from competitors who simply offer lower priced products. This paper aims to report the state-of-the-art of PSS research by presenting a clinical review of literature currently available on this topic. The literature is classified and the major outcomes of each study are addressed and analysed.On this basis, this paper defines the PSS concept, reports on its origin and features, gives examples of applications along with potential benefits and barriers to adoption, summarises available tools and methodologies, and identifies future research challenges.

Recent work on competitiveness has emphasized the importance of business networking for innovativeness. Until recently, insights into the dynamics of this relationship have been fragmented. This paper presents a systematic review of research linking the networking behaviour of firms with their innovative capacity. We find that the principal benefits of networking as identified in the literature include: risk sharing; obtaining access to new markets and technologies; speeding products to market; pooling complementary skills; safeguarding property rights when complete or contingent contracts are not possible; and acting as a key vehicle for obtaining access to external knowledge. The evidence also illustrates that those firms which do not co‐operate and which do not formally or informally exchange knowledge limit their knowledge base long term and ultimately reduce their ability to enter into exchange relationships. At an institutional level, national systems of innovation play an important role in the diffusion of innovations in terms of the way in which they shape networking activity. The paper provides evidence suggesting that network relationships with suppliers, customers and intermediaries such as professional and trade associations are important factors affecting innovation performance and productivity. Where networks fail, it is due to inter‐firm conflict, displacement, lack of scale, external disruption and lack of infrastructure. The review identifies several gaps in the literature that need to be filled. For instance, there is a need for further exploration of the relationship between networking and different forms of innovation, such as process and organisational innovation. Similarly, we need better understanding of network dynamics and network configurations, as well as the role of third parties such as professional and trade associations. Our study highlights the need for interdisciplinary research in these areas.

Commentators suggest that to survive in developed economies manufacturing firms have to move up the value chain, innovating and creating ever more sophisticated products and services, so they do not have to compete on the basis of cost. While this strategy is proving increasingly popular with policy makers and academics there is limited empirical evidence to explore the extent to which it is being adopted in practice. And if so, what the impact of this servitization of manufacturing might be. This paper seeks to fill a gap in the literature by presenting empirical evidence on the range and extent of servitization. Data are drawn from the OSIRIS database on 10,028 firms incorporated in 25 different countries. The paper presents an analysis of these data which suggests that: [i] manufacturing firms in developed economies are adopting a range of servitization strategies-12 separate approaches to servitization are identified; [ii] these 12 categories can be used to extend the traditional three options for servitization-product oriented Product-Service Systems, use oriented ProductService Systems and result oriented Product-Service Systems, by adding two new categories "integration oriented Product-Service Systems" and "service oriented Product-Service Systems"; [iii] while the manufacturing firms that have servitized are larger than traditional manufacturing firms in terms of sales revenues, at the aggregate level they also generate lower profits as a % of sales; [iv] these findings are moderated by firm size (measured in terms of numbers of employees). In smaller firms servitization appears to pay off while in larger firms it proves more problematic; and [v] there are some hidden risks associated with servitization-the sample contains a greater proportion of bankrupt servitized firms than would be expected.

This paper addresses issues met when designing, implementing, using and continuously updating performance measurement systems in manufacturing companies. The paper develops, from theory, a framework for analysing the implementation of a performance measurement system and uses this framework to interpret three longitudinal case studies. The paper concludes that specific processes are required to continuously align the performance measurement system with strategy. When these processes are combined with a well defined model of strategic success, the measurement system can enhance the strategic management process by challenging the assumptions and the strategy itself.

Asks why business performance measurement has become so topical, so recently. Argues that there are seven main reasons: the changing nature of work; increasing competition; specific improvement initiatives; national and international quality awards; changing organisational roles; changing external demands; and the power of information technology. Evidence to support this assertion is drawn from the academic and practitioner literatures, interviews and discussions with people specialising in the field and a broad review of the current state-of-the-art in business performance measurement. Presents a framework onto which current research in business performance measurement can be mapped and identifies areas which require further work. To achieve sustainable business success in the demanding world marketplace, a company must ... use relevant performance measures (RSA, 1994). Politicians recognise this, as can be seen by the current and previous UK Government's obsession with league tables, and the fact that the above quote appeared in one of the UK's White Papers on competitiveness. What is not immediately obvious is why business performance measurement is on the agenda. What is it that makes the topic so relevant to management today? After all, it has long been recognised that performance measures are an integral part of the planning and control cycle (Barnard, 1962) and managers must have been planning and controlling the deployment of resources since the first organisation was established. Indeed, Chandler (1977) argues that most of the basic methods used to manage big businesses today were in place by 1910: In 1903, three Du Pont cousins consolidated their small enterprises with many other small single-unit family firms. They then completely reorganised the American explosives industry and installed an organisational structure that incorporated the "best practice" of the day. The highly rational managers at Du Pont continued to perfect these techniques, so that by 1910 that company was employing nearly all the basic methods that are currently used in managing big business (Chandler, 1977, p. 417).

Describes the development and testing of a structured methodology for the design of performance measurement systems. Frameworks, such as the balanced scorecard and the performance prism, have been proposed, but until recently little attention has been devoted to the question of how these frameworks can be populated, i.e. how managers can decide specifically which measures to adopt. Following a wide ranging review of the performance measurement literature, a framework identifying the desirable characteristics of a performance measurement system design process is developed. This framework provided guidelines which were subsequently used to inform the development of a process‐based approach to performance measurement system design. The process was enhanced and refined during application in three action research projects, involving major UK automotive and aerospace companies. The revised process was then formally documented and tested through six further industrial applications. Finally the process was written up in the form of a workbook and made publicly available.

Rationale: Scholars in the field of performance measurement tend to use the term Business Performance Measurement (BPM) systems without explaining exactly what they mean by it. This lack of clarity creates confusion and comparability issues, and makes it difficult for researchers to build on each others' work. Purpose: The purpose of this paper is to identify the key characteristics of a BPM system. We do so by reviewing the different definitions of a BPM system that exist in the literature. Through this work, we aim to open a debate on what are the necessary and sufficient conditions of a BPM system. We also hope to encourage a greater level of clarity in the performance measurement research arena. Methodology: We review the performance measurement literature using a systematic approach. Findings: Based on our research, we have proposed a set of conditions of a BPM system from which researchers can choose those which are necessary and sufficient conditions for their studies. Research implications: The analysis in this paper provides a structure and set of characteristics that researchers could use as a reference framework to define a BPM system for their work, and as a way to define the specific focus of their investigations. More clarity and 2 precision around the use of the BPM systems phrase will improve the generalisability and comparability of research in this area.

Performance measurement can be defined as the process of quantifying the efficiency and effectiveness of action.q A performance measure can be defined as a metric used to quantify the efficiency and/or effectiveness of an action[3].