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Product-service systems and circular supply chain practices in UK SMEs: The moderating effect of internal environmental orientation

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  • Kühl, Carl
  • Bourlakis, Michael
  • Aktas, Emel
  • Skipworth, Heather

Abstract

Many studies uphold product-service systems (PSSs) as key factors for the implementation of circular supply chain (CSC) practices. This paper explores this assumption by testing the links between product-, use- and result-oriented PSSs and slowing, closing, and narrowing CSC practices. It develops and validates survey items that can be used to benchmark CSC practice implementation. In addition, it tests a model that recognises the positive moderating role of internal environmental orientation. A survey is conducted with 114 manufacturing small and medium-sized enterprises (SMEs) in the United Kingdom (UK). Partial least squares structural equation modelling is conducted to evaluate two models. The results show that product-oriented PSSs positively affect the slowing, use-oriented positively affects the closing, and result-oriented positively affects the slowing and the narrowing of resource loops. Internal environmental orientation does not moderate the PSS – CSC relationship, suggesting that less internally environmentally oriented firms are not at a disadvantage.

Suggested Citation

  • Kühl, Carl & Bourlakis, Michael & Aktas, Emel & Skipworth, Heather, 2022. "Product-service systems and circular supply chain practices in UK SMEs: The moderating effect of internal environmental orientation," Journal of Business Research, Elsevier, vol. 146(C), pages 155-165.
    • Handle: RePEc:eee:jbrese:v:146:y:2022:i:c:p:155-165
    DOI: 10.1016/j.jbusres.2022.03.078
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