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PSS Strategic Alignment: Linking Service Transition Strategy with PSS Business Model

Author

Listed:
  • Mar’atus Sholihah

    (Department of System Design, Tokyo Metropolitan University, Tokyo 191-0065, Japan)

  • Tatsuru Maezono

    (Department of System Design, Tokyo Metropolitan University, Tokyo 191-0065, Japan)

  • Yuya Mitake

    (Department of System Design, Tokyo Metropolitan University, Tokyo 191-0065, Japan)

  • Yoshiki Shimomura

    (Department of System Design, Tokyo Metropolitan University, Tokyo 191-0065, Japan)

Abstract

One of the most promising business models towards economic circularity is product-service system (PSS). Despite its great potential benefits, shifting the traditional business model of a manufacturer into PSS business model commonly refers to service transition and triggers inconsistencies between strategic direction and organization arrangement at an operational level. The absence of alignment between the service transition strategy and the PSS business model is greatly emphasized as a crucial enabler, risk factor and key success factor of the service transition. However, limited academic works have concretely contributed to the strategic alignment. Through a systematic literature review, this paper proposes a PSS business alignment that enables the manufacturer to identify the strategic objective of its service transition strategy and align it with PSS business model. The theoretical version of the proposed framework is redefined and redeveloped through two cycles of action research involving 11 Japanese companies.

Suggested Citation

  • Mar’atus Sholihah & Tatsuru Maezono & Yuya Mitake & Yoshiki Shimomura, 2019. "PSS Strategic Alignment: Linking Service Transition Strategy with PSS Business Model," Sustainability, MDPI, vol. 11(22), pages 1-30, November.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:22:p:6245-:d:284489
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    References listed on IDEAS

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    Cited by:

    1. Yuan Chang & Xinguo Ming & Xianyu Zhang & Tongtong Zhou & Xiaoqiang Liao & Sijia Cao, 2021. "Servitization and Sustainable Value Creation Strategy for China’s Manufacturing Industry: A Multiple Case Study in the Belt and Road Initiative," Sustainability, MDPI, vol. 13(20), pages 1-28, October.
    2. Jinhwan Kim & Hyeob Kim & HyukJun Kwon, 2020. "The Impact of Employees’ Perceptions of Strategic Alignment on Sustainability: An Empirical Investigation of Korean Firms," Sustainability, MDPI, vol. 12(10), pages 1-23, May.
    3. Mariusz Salwin & Ilona Jacyna-Gołda & Andrzej Kraslawski & Aneta Ewa Waszkiewicz, 2022. "The Use of Business Model Canvas in the Design and Classification of Product-Service Systems Design Methods," Sustainability, MDPI, vol. 14(7), pages 1-23, April.
    4. Mar’atus Sholihah & Tatsuru Maezono & Yuya Mitake & Yoshiki Shimomura, 2020. "Formulating Service-Oriented Strategies for Servitization of Manufacturing Companies," Sustainability, MDPI, vol. 12(22), pages 1-30, November.

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