Track: Graduate Student Paper Competition

Abstract

Product-Service System (PSS) offers value propositions to customers while achieving better results for organizations. To contribute to sustainability, the PSS business model should be designed to cover improvements in economic, environmental, and social dimensions. Nevertheless, how to deliver the solutions’ value remains a gap in PSS literature. In this context, this work aims to analyze value drivers or sources of value creation in PSS business models. A set of four PSS value drivers was firstly defined based on a literature analysis: ‘novelty’, ‘effectiveness’, ‘complementarities’, and ‘loyalty’. Opportunities to add value to the PSS business model were also identified in the literature to enhance PSS design. The theoretical analysis was followed by an empirical study to identify value drivers of two sharing systems business models. The results evidenced the lack of knowledge by PSS developers about PSS sources of value creation. To create maximum value, the solution needs to integrate innovative technologies and effective processes as primary value drivers. ‘Complementarities’ (e.g., services complementing products) could also lead to a more profitable solution. As a consequence, those cited value drivers could lead to long-term customer satisfaction and may enable loyalty to be present as a value driver to achieve PSS economic viability.