IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i2p1148-d1028314.html
   My bibliography  Save this article

The Product–Service System Supply Chain Capabilities and Their Impact on Sustainability Performance: A Dynamic Capabilities Approach

Author

Listed:
  • Dian Retno Sari Dewi

    (Industrial Engineering Department, Widya Mandala Catholic University, Surabaya 60114, Indonesia)

  • Yustinus Budi Hermanto

    (Faculty of Economics, Darma Cendika Catolic University, Surabaya 60117, Indonesia)

  • Elizabeth Tait

    (Information Studies, Charles Sturt University, Parramatta, NSW 2650, Australia)

  • Martinus Edy Sianto

    (Industrial Engineering Department, Widya Mandala Catholic University, Surabaya 60114, Indonesia)

Abstract

In response to competition and other market challenges, many consumer manufacturing companies are offering Product–Service Systems (PSSs) in order to improve their sustainability performance. This paper aims to examine the relationship between the PSS supply chain (SC) capabilities and sustainability performance. It empirically investigates a framework that hypothesises the impact of seven PSS SC capabilities on sustainability performance. Data were collected from 447 official motorcycle service partners in Indonesia and analysed using structural equation modelling. The findings reveal that innovative service delivery and sustainable product–service capability positively affect sustainability performance, whereas partner development, reflexive control, and re-conceptualisation positively affect sustainable product–service capability. The results also validate that collaboration and knowledge assessment do not directly affect sustainability performance. A contribution of this study is the innovative use of quantitative methods to provide empirical evidence that the PSS SC capabilities can contribute to sustainability performance, directly and indirectly. It also broadens the utilisation of Dynamic Capabilities (DCs) in PSS SC research. The findings also guide managers and decision-makers in the implementation of the PSS SC capabilities required to enhance sustainability performance.

Suggested Citation

  • Dian Retno Sari Dewi & Yustinus Budi Hermanto & Elizabeth Tait & Martinus Edy Sianto, 2023. "The Product–Service System Supply Chain Capabilities and Their Impact on Sustainability Performance: A Dynamic Capabilities Approach," Sustainability, MDPI, vol. 15(2), pages 1-24, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1148-:d:1028314
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/2/1148/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/2/1148/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gunasekaran, Angappa & Spalanzani, Alain, 2012. "Sustainability of manufacturing and services: Investigations for research and applications," International Journal of Production Economics, Elsevier, vol. 140(1), pages 35-47.
    2. Ying Ji & Huanhuan Li & Huijie Zhang, 2022. "Risk-Averse Two-Stage Stochastic Minimum Cost Consensus Models with Asymmetric Adjustment Cost," Group Decision and Negotiation, Springer, vol. 31(2), pages 261-291, April.
    3. Kirsimarja Blomqvist & Juha Levy, 2006. "Collaboration capability – a focal concept in knowledge creation and collaborative innovation in networks," International Journal of Management Concepts and Philosophy, Inderscience Enterprises Ltd, vol. 2(1), pages 31-48.
    4. Beske, Philip & Land, Anna & Seuring, Stefan, 2014. "Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature," International Journal of Production Economics, Elsevier, vol. 152(C), pages 131-143.
    5. Kumar, Gopal & Subramanian, Nachiappan & Maria Arputham, Ramkumar, 2018. "Missing link between sustainability collaborative strategy and supply chain performance: Role of dynamic capability," International Journal of Production Economics, Elsevier, vol. 203(C), pages 96-109.
    6. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    7. Yong Chen & Zhengjie Wu & Wenchao Yi & Bingjia Wang & Jianhua Yao & Zhi Pei & Jiaoliao Chen, 2022. "Bibliometric Method for Manufacturing Servitization: A Review and Future Research Directions," Sustainability, MDPI, vol. 14(14), pages 1-26, July.
    8. Sea-Jin Chang & Arjen van Witteloostuijn & Lorraine Eden, 2010. "From the Editors: Common method variance in international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 178-184, February.
    9. Wang, Changfeng & Hu, Qiying, 2020. "Knowledge sharing in supply chain networks: Effects of collaborative innovation activities and capability on innovation performance," Technovation, Elsevier, vol. 94.
    10. Boon-itt, Sakun & Wong, Chee Yew & Wong, Christina W.Y., 2017. "Service supply chain management process capabilities: Measurement development," International Journal of Production Economics, Elsevier, vol. 193(C), pages 1-11.
    11. Paiola, Marco & Saccani, Nicola & Perona, Marco & Gebauer, Heiko, 2013. "Moving from products to solutions: Strategic approaches for developing capabilities," European Management Journal, Elsevier, vol. 31(4), pages 390-409.
    12. Ayala, Néstor Fabián & Paslauski, Carolline Amaral & Ghezzi, Antonio & Frank, Alejandro Germán, 2017. "Knowledge sharing dynamics in service suppliers' involvement for servitization of manufacturing companies," International Journal of Production Economics, Elsevier, vol. 193(C), pages 538-553.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammad Daradkeh, 2023. "Exploring the Curvilinear Relationship between Academic-Industry Collaboration Environment and Innovation Performance: A Multilevel Perspective," Sustainability, MDPI, vol. 15(10), pages 1-20, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nisha Paul Kulangara & Markus Biehl & Edmund L. Prater, 2022. "Environmentally sustainable development initiatives in upstream strategic outsourcing relationships: Examining the role of innovative capabilities," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3014-3027, November.
    2. Tiberius, Victor & Stiller, Laura & Dabić, Marina, 2021. "Sustainability beyond economic prosperity: Social microfoundations of dynamic capabilities in family businesses," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    3. Tobias Rebs & Daniel Thiel & Marcus Brandenburg & Stefan Seuring, 2019. "Impacts of stakeholder influences and dynamic capabilities on the sustainability performance of supply chains: a system dynamics model," Journal of Business Economics, Springer, vol. 89(7), pages 893-926, September.
    4. Daniela Ortiz‐Avram & Nelly Ovcharova & Alexander Engelmann, 2024. "Dynamic capabilities for sustainability: Toward a typology based on dimensions of sustainability‐oriented innovation and stakeholder integration," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 2969-3004, May.
    5. Fritz, Morgane MC & Ruel, Salomée & Kallmuenzer, Andreas & Harms, Rainer, 2021. "Sustainability management in supply chains: the role of familiness," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    6. Siems, Erik & Land, Anna & Seuring, Stefan, 2021. "Dynamic capabilities in sustainable supply chain management: An inter-temporal comparison of the food and automotive industries," International Journal of Production Economics, Elsevier, vol. 236(C).
    7. Yi-Ju Lo & Tung Hung, 2015. "Structure offshoring and returns on offshoring," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 443-479, June.
    8. Xiao Zhang & Luqun Xie & Jiatao Li & Li Cheng, 2022. "“Outside in”: Global demand heterogeneity and dynamic capabilities of multinational enterprises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(4), pages 709-722, June.
    9. Tan, Alvin & Brewer, Paul & Liesch, Peter, 2018. "Rigidity in SME export commencement decisions," International Business Review, Elsevier, vol. 27(1), pages 46-55.
    10. Fosso Wamba, Samuel & Queiroz, Maciel M. & Trinchera, Laura, 2024. "The role of artificial intelligence-enabled dynamic capability on environmental performance: The mediation effect of a data-driven culture in France and the USA," International Journal of Production Economics, Elsevier, vol. 268(C).
    11. Thierry Sauvage & Tony Cragg & Sarrah Chraibi & Oussama El Khalil Houssaini, 2018. "Running the Machine Faster: Acceleration, Humans and Warehousing," Post-Print hal-02905068, HAL.
    12. Kumar, Mukesh & Tsolakis, Naoum & Agarwal, Anshul & Srai, Jagjit Singh, 2020. "Developing distributed manufacturing strategies from the perspective of a product-process matrix," International Journal of Production Economics, Elsevier, vol. 219(C), pages 1-17.
    13. Eriksson, Taina & Nummela, Niina & Saarenketo, Sami, 2014. "Dynamic capability in a small global factory," International Business Review, Elsevier, vol. 23(1), pages 169-180.
    14. Merlina Missimer & Patricia Lagun Mesquita, 2022. "Social Sustainability in Business Organizations: A Research Agenda," Sustainability, MDPI, vol. 14(5), pages 1-13, February.
    15. Viktora-Jones, Magdalena & Parente, Ronaldo & Drori, Netanel & Zhao, Yue, 2024. "Firm performance drivers within a dynamic emerging market ecosystem," Journal of International Management, Elsevier, vol. 30(1).
    16. Lütjen, Heiner & Schultz, Carsten & Tietze, Frank & Urmetzer, Florian, 2019. "Managing ecosystems for service innovation: A dynamic capability view," Journal of Business Research, Elsevier, vol. 104(C), pages 506-519.
    17. Xiongyong Zhou & Madeleine Pullman & Zhiduan Xu, 2022. "The impact of food supply chain traceability on sustainability performance," Operations Management Research, Springer, vol. 15(1), pages 93-115, June.
    18. Jane Wandia Wanjogo & Stephen Makau Muathe, 2022. "Gaining competitive advantage through generic strategies in medical training colleges in Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 11(2), pages 29-41, March.
    19. Anders Pehrsson, 2019. "When are innovativeness and responsiveness effective in a foreign market?," Journal of International Entrepreneurship, Springer, vol. 17(1), pages 19-40, March.
    20. Jiang, Qijie & McCabe, Scott, 2021. "Information technology and destination performance: Examining the role of dynamic capabilities," Annals of Tourism Research, Elsevier, vol. 91(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1148-:d:1028314. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.