Towards territorial product-service systems: A framework linking resources, networks and value creation

While many models for sustainable product-service systems (PSS) integrate the multi-actor perspective, few provide insights on how the territory in which actors implement the system influences its sustainability. This paper explores the implementation of a territorial PSS at a city or regional scale as a means to structuring value networks and enhancing its sustainability potential. The research combines a multidisciplinary literature review with two exploratory sustainable PSS cases in packaging and cloth baby diapers. The paper proposes a framework explaining how sustainable PSS providers develop territorial networks that consider a diversity of actors from civil, industrial, and public spheres to mobilize resources for value creation at organizational, network, and territorial levels. It identifies contextual factors, such as proximity, social embeddedness of relations, and the visions that influence the consolidation and sustainability of the territorial PSS networks. The empirical cases show the development of territorial networks enhances embed social relations among actors and enables the sustainable PSS concept to adapt to locally articulated sustainability principles and priorities. The paper discusses the implications of this approach for PSS for sustainability managers and designers. The study fills a gap by showing the importance of integrating a diversity of territorial actors as a precondition for PSS to contribute to the sustainability transitions and resilience of territories. Future research may validate the proposed framework and focus on identifying opportunities and barriers for the territorial PSS approach in different contexts such as industries and company sizes.