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

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.