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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
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    References listed on IDEAS

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    2. Bag, Surajit & Gupta, Shivam & Chan, Hau-Ling & Kumar, Ajay, 2024. "Building smart product-service systems capabilities for circular supply chains in the Industry 4.0 era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 188(C).

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