Constructing a sustainable service business model

Abstract

Purpose – The purpose is to conceptually construct a service-dominant (S-D) logic-based integrated product service system (IPSS) business model. Design/methodology/approach – The model is constructed through literature reviews and inferences. Findings – IPSS model is in compliance with the ten fundamental premises of S-D logic as well as conforming to triple bottom lines of sustainability. Research limitations/implications – To convert a firm from goods-centric model to service-centric IPSS model is not easy. There are quite a few challenges to be overcome. Practical implications – There are many successful cases adopting service-centric business model. The key success factors are to be identified in the future studies. Originality/value – It is the first paper discussing the sustainability of IPSS model and its relationship with S-D logic.

Driving innovation through ambidextrous service provision — long life cycle products in manufacturing contexts

“…Innovation captures the products value in terms of use and end of life management, while enhancing sustainability through reduced environmental impact (Liu et al, 2014). The logic is underpinned by utilising the knowledge of the designer and manufacturer to increase value to the customer and decrease material and other costs as an output of the system (Morelli, 2006;Baines, 2007).…”

“…The framework is then applied to an illustrative case in Section 4, and Section 5 ties up the analysis with some tentative conclusions. (Liu et al, 2014). Such business models have the potential to generate a spiral of revenue growth when the product-service provider has the ability to control the cost of the entire value system (Tukker and Tischner, 2006).…”

“…Integrated PSS solutions increase value to the customer through lifetime and life-end services bundled with products, thereby changing the focus of the value proposition from manufacturer to solution provider by focusing on services (Manzini and Vezzoli, 2003;Gebauer and Fleisch, 2007). This requires supply chain collaboration during the new product development process, beginning at the product design stage and continuing through to the end of the products life (Liu et al, 2014;Doualle et al, 2016); a system of interacting parts that include people, technology and businesses (Chesbrough and Spohrer, 2006). Despite the fact that services can generate higher margins than products alone, it would seem that managers are not fully convinced, partly explaining reluctance to exploit the opportunities of PSS (Grabauer and Fleisch, 2007).…”

Challenges Addressed by Swedish Third-Party Logistics Providers Conducting Sustainable Logistics Business Cases

“…Traditionally, environmental and social initiatives have been associated with additional cost for the company; however, a paradigm shift has taken place linking sustainability initiatives to improved economic performance, e.g., [1][2][3][4]. This has also been demonstrated in some empirical studies focusing on, e.g., retailers [5] and manufacturers [1].…”

Sustainability reporting of logistics service providers in Europe

“…Companies face increased supply chain competition (Antai, 2011;Ashby et al, 2012;Christopher, 1992Christopher, , 2005Christopher, , 2010Cozzolino, 2009;Liu et al, 2014;Massaroni and Cozzolino, 2012;Sahay, 2003) which requires them to adopt a collaborative approach and to act synergistically during value creation and entails somehow moving beyond traditional company boundaries (Rullani, 2010). As Preuss (2005) has stated, lasting environmental sustainability can be assured only if companies move beyond their own confines and establish relationships in order to benefit fully from environmental management.…”