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Unintended Circularity?—Assessing a Product-Service System for its Potential Contribution to a Circular Economy

Author

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  • Johannes Matschewsky

    (Environmental Technology and Management, Department of Management and Engineering, Linköping University, 581 83 Linköping, Sweden)

Abstract
Product-service systems (PSSs) are seen as valuable facilitators of a circular economy (CE) on a business level. However, that PSSs contribute to a CE is not a given and is determined by the chosen PSS business model and strategy applied throughout the entire lifecycle. Thus, in order to support companies in implementing circular business models such as PSSs, an increasing number of frameworks and methods have been proposed in prior research. This article hypothesizes that many industrial companies are expanding to become PSS providers with neither such support nor a strong sustainability focus. There is a gap in the literature regarding the potential contribution of such PSSs to a CE. Thus, the research reported aims to provide initial insight regarding whether unintended circularity, i.e., an unintended contribution to a CE, may occur when becoming a PSS provider. Applying and adapting an existing framework for the assessment of PSSs’ potential contribution to a CE, the use-oriented PSS of an industrial company was assessed in-depth. Results regarding the relative resource reduction and the prospect of achieving absolute resource decoupling are reported and discussed. While relative improvements over product sales are identified, e.g., resulting from end-of-life efforts on reuse and remanufacturing, opportunities for additional enhancement are found, e.g., in adjustments of the PSS design process. Concerning absolute resource decoupling, a fundamental challenge lies in the use-oriented PSS’s dependency on an increasing number of physical components as the company’s business expands. This article advances the discussion on PSSs’ potential contributions to a CE with an in-depth empirical study. For practitioners, the results reported expand on important aspects of efficient and effective PSS provision throughout the lifecycle.

Suggested Citation

  • Johannes Matschewsky, 2019. "Unintended Circularity?—Assessing a Product-Service System for its Potential Contribution to a Circular Economy," Sustainability, MDPI, vol. 11(10), pages 1-27, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:10:p:2725-:d:230812
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    7. Fabio Neves Puglieri & Rodrigo Salvador & Omar Romero‐Hernandez & Edmundo Escrivão Filho & Cassiano Moro Piekarski & Antonio Carlos de Francisco & Aldo Roberto Ometto, 2022. "Strategic planning oriented to circular business models: A decision framework to promote sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3254-3273, November.
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    12. Päivi Petänen & Henna Sundqvist & Maria Antikainen, 2024. "Deconstructing Customer Value Propositions for the Circular Product-as-a-Service Business Model: A Case Study from the Textile Industry," Circular Economy and Sustainability, Springer, vol. 4(3), pages 1631-1653, September.
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    14. Ricardo J Hernandez, 2019. "Sustainable Product-Service Systems and Circular Economies," Sustainability, MDPI, vol. 11(19), pages 1-11, September.
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    16. Hinrika Droege & Andrea Raggi & Tomás B. Ramos, 2021. "Co‐development of a framework for circular economy assessment in organisations: Learnings from the public sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1715-1729, November.
    17. Lahcen, Bart & Eyckmans, Johan & Rousseau, Sandra & Dams, Yoko & Brusselaers, Jan, 2022. "Modelling the circular economy: Introducing a supply chain equilibrium approach," Ecological Economics, Elsevier, vol. 197(C).

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