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Building smart product-service systems capabilities for circular supply chains in the Industry 4.0 era

Author

Listed:
  • Surajit Bag

    (PULV - Pôle Universitaire Léonard de Vinci)

  • Shivam Gupta

    (NEOMA - Neoma Business School)

  • Hau-Ling Chan

    (POLYU - The Hong Kong Polytechnic University [Hong Kong])

  • Ajay Kumar

    (EM - EMLyon Business School)

Abstract

A smart product-service system is an integrated digital infrastructure that brings together products and services to provide clients with a full range of options. A smart product-service system is a crucial capability that enhances collaboration among several parties in a supply chain and gives businesses valuable insights into performance. This study investigates (a) the zero-level capabilities (also known as organizational capabilities) that influence dynamic capabilities (i.e., smart circular product-service systems capabilities) building in the Industry 4.0 era while environmental dynamism acts as a moderator, and (b) how the smart circular product-service systems capabilities can support firms' (financial and environmental) performance. Based on the data collected from the manufacturers who have been actively involved in smart circular product-service system based projects, our findings reveal that three zero-level capabilities (i.e., product lifetime database creation capabilities, analytics and business intelligence capabilities and actuating capabilities) are crucial for building dynamic capabilities (i.e., smart circular product-service systems capabilities) in a volatile business environment. Besides, we also highlight how these capabilities can positively affect firms' financial and environmental performance.

Suggested Citation

  • Surajit Bag & Shivam Gupta & Hau-Ling Chan & Ajay Kumar, 2024. "Building smart product-service systems capabilities for circular supply chains in the Industry 4.0 era," Post-Print hal-05531907, HAL.
    • Handle: RePEc:hal:journl:hal-05531907
    DOI: 10.1016/j.tre.2024.103625
    as

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