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Reim, W., Parida, V. & Sjödin, D. (2019). Circular Business Models for the Bio-Economy: A Review and New Directions for Future Research. Sustainability, 11(9), Article ID 2558.
Open this publication in new window or tab >>Circular Business Models for the Bio-Economy: A Review and New Directions for Future Research
2019 (English)In: Sustainability, ISSN 2071-1050, E-ISSN 2071-1050, Vol. 11, no 9, article id 2558Article in journal (Refereed) Published
Abstract [en]

Circular and bio-economy represents a political and industrial initiative to ensure that our society can rely on renewable biological sources while achieving economic growth. However, there is a need to critical review how realistic and feasible such initiatives are towards fulfilling the promised benefits of this economy. The literature on bio-economy often discusses the importance of innovative business models and their role in a successful shift to a bio-economy. Still, much of the discussion that is related to circular business models is fragmented and immature. Therefore, the purpose of this study is to conduct a systematic literature review of circular business model activities and the barriers to a bio-economy. Further, this review provides future research directions for a shift to a bio-economy. This study is based on a systematic review of 42 scientific journal articles and book chapters on a forest-based bio-economy. The business model canvas is used to provide a structured aggregation of the existing circular business models activities being used by the forestry sector. In addition, we develop a framework that describes the barriers to bio-economy-based circular business models and suggest new directions for future research. The study highlights the need for alignment among the elements of a business model as a key condition for its successful implementation in a bio-economy

Place, publisher, year, edition, pages
MDPI, 2019
Keywords
bio-economy, circular economy, business models, circular business models, forest, literature review
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-75076 (URN)10.3390/su11092558 (DOI)000469518700106 ()2-s2.0-85066949345 (Scopus ID)
Note

Validerad;2019;Nivå 2;2019-08-15 (johcin)

Available from: 2019-06-27 Created: 2019-06-27 Last updated: 2019-08-15Bibliographically approved
Parida, V., Sjödin, D. & Reim, W. (2019). Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises. Sustainability, 11(2), Article ID 391.
Open this publication in new window or tab >>Reviewing Literature on Digitalization, Business Model Innovation, and Sustainable Industry: Past Achievements and Future Promises
2019 (English)In: Sustainability, ISSN 2071-1050, E-ISSN 2071-1050, Vol. 11, no 2, article id 391Article in journal (Refereed) Published
Abstract [en]

Digitalization is revolutionizing the way business is conducted within industrial value chains through the use of Internet of Things (IoT) technologies, intensive data exchange and predictive analytics. However, technological application on its own is not enough; profiting from digitalization requires business model innovation such as making the transition to advanced service business models. Yet, many research gaps remain in analyzing how industrial companies can leverage digitalization to transform their business models to achieve sustainability benefits. Specifically, challenges related to value creation, value delivery, and value capture components of business model innovation need further understanding as well as how alignment of these components drive sustainable industry initiatives. Thus, this special issue editorial attempts to take stock of the emerging research field through a literature review and providing a synthesis of special issue contributions. In doing so, we contribute by developing a framework that communicates and sets the direction for future research by linking digitalization, business model innovation, and sustainability in industrial settings.

Place, publisher, year, edition, pages
MDPI, 2019
Keywords
digitalization, business model innovation, advanced services, digital services, product–service systems (PSS), sustainability, circular economy, value creation, value capture
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-72708 (URN)10.3390/su11020391 (DOI)000457129900095 ()2-s2.0-85059981198 (Scopus ID)
Note

Validerad;2019;Nivå 2;2019-01-28 (svasva)

Available from: 2019-01-28 Created: 2019-01-28 Last updated: 2019-02-22Bibliographically approved
Reim, W., Sjödin, D. & Parida, V. (2019). Servitization of global service network actors: A contingency framework for matching challenges and strategies in service transition. Journal of Business Research
Open this publication in new window or tab >>Servitization of global service network actors: A contingency framework for matching challenges and strategies in service transition
2019 (English)In: Journal of Business Research, ISSN 0148-2963, E-ISSN 1873-7978Article in journal (Refereed) Epub ahead of print
Abstract [en]

Servitization is a rising trend across manufacturing companies, but it is not achievable without the corresponding transition of the manufacturers’ service network. Despite the key role of service network actors, their servitization pathways are not widely understood. Thus, the purpose of this paper is to understand how diverse service network actors approach servitization under varying conditions. Findings are derived from an exploratory case study of eight service network actors for a global construction equipment manufacturer. The analysis reveals that service network actors face major capability-(lack of service provision capabilities, lack of service provision vision) and market-related challenges (unfavorable local conditions, low customer service readiness) that hinder their transformation. The analysis also reveals four unique servitization strategies (service extension, service benchmarking, digitalization, customer co-creation) that service network actors implement. A contingency framework is proposed to explain which challenges can be matched with which servitization strategies to achieve service network servitization. 

Place, publisher, year, edition, pages
Elsevier, 2019
Keywords
Challenges, Distributor, Ecosystem, Product-Service Systems (PSS), Service networks, Servitization
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-72822 (URN)10.1016/j.jbusres.2019.01.032 (DOI)
Available from: 2019-02-07 Created: 2019-02-07 Last updated: 2019-02-07
Johansson, N., Roth, E. & Reim, W. (2019). Smart and Sustainable eMaintenance: Capabilities for Digitalization of Maintenance. Sustainability, 11(13), Article ID 3553.
Open this publication in new window or tab >>Smart and Sustainable eMaintenance: Capabilities for Digitalization of Maintenance
2019 (English)In: Sustainability, ISSN 2071-1050, E-ISSN 2071-1050, Vol. 11, no 13, article id 3553Article in journal (Refereed) Published
Abstract [en]

In the era of Industry 4.0, researchers have begun to more thoroughly examine digital maintenance, i.e., eMaintenance, as digitization is increasingly affecting today’s society. This area is particularly interesting in the case of long-life components such as those used in the mining and transport industries. With eMaintenance, the correct type of maintenance can be utilized and the frequency for device maintenance can be reduced through real-time diagnosis. This leads to reduced costs for companies that implement eMaintenance as well as environmental benefits through improved resource utilization. Advantages of eMaintenance have been described in the literature; however, the capabilities necessary to implement eMaintenance lack proper research. The purpose of this study is to develop a framework that presents the required capabilities and their connection when an organization wants to implement eMaintenance, as well as to identify the outcomes of the transition to eMaintenance. The study is based on an exploratory case study that includes 26 interviews with a digital railway maintenance development company and its main customer, the traffic agency. The study findings are presented in a framework, including five main capabilities for implementing eMaintenance and its relationship within the noted industries. The required capabilities are, namely, digital technology development, organizational development, change of work routines, compliance with regulations, and assuring information security. The framework also analyzes the outcomes of implementing digital maintenance, which demonstrate a variety of economic, environmental, and social benefits.

Place, publisher, year, edition, pages
MDPI, 2019
Keywords
eMaintenance, digitalization, Industry 4.0, digital maintenance, railway maintenance, smart maintenance, sustainability
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-75584 (URN)10.3390/su11133553 (DOI)000477051900057 ()2-s2.0-85068769322 (Scopus ID)
Note

Validerad;2019;Nivå 2;2019-08-19 (johcin)

Available from: 2019-08-19 Created: 2019-08-19 Last updated: 2019-08-22Bibliographically approved
Reim, W., Sjödin, D. & Parida, V. (2018). Mitigating adverse customer behaviour for product-service system provision: An agency theory perspective. Industrial Marketing Management, 74, 150-161
Open this publication in new window or tab >>Mitigating adverse customer behaviour for product-service system provision: An agency theory perspective
2018 (English)In: Industrial Marketing Management, ISSN 0019-8501, E-ISSN 1873-2062, Vol. 74, p. 150-161Article in journal (Refereed) Published
Abstract [en]

Offering product-service systems (PSS) arguably results in economic, environmental and social benefits but also entails significant challenges related to relational dynamics between the provider and the customer. Although prior studies suggest that adverse customer behaviour during PSS provision is likely, they provide a limited theoretical understanding of the conceptualization of such relational problems and, more importantly, offer few possible ways to address these problems. By applying the lens of agency theory, this study examines PSS provider-customer relational problems and solutions. Therefore, the purpose of this study is to identify agency problems and propose mechanisms to mitigate adverse customer behaviour in PSS provision. Based on a multiple case study approach involving two manufacturing companies, several results are presented. First, we identify and describe two underlying reasons for adverse customer behaviour. These reasons are associated with goal differentiation and monitoring challenges. Second, different agency mechanisms (i.e. sharing, monitoring and trust) are presented as approaches to mitigate the likelihood of adverse customer behaviour. The matching of agency problems with agency mechanisms to mitigate these problems lays the groundwork for developing a framework for agency situation evaluation during the formation and ongoing phases of the PSS agreement. In addition, the choice of agency mechanism is found to be correlated with the maturity and type of customer relationship and can change over time as new customers become known and then become loyal. The proposed framework has major theoretical implications for the PSS literature as well as managerial implications for large manufacturing companies engaged in PSS provision.

Place, publisher, year, edition, pages
Elsevier, 2018
National Category
Social Sciences Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-68346 (URN)10.1016/j.indmarman.2018.04.004 (DOI)000449894200013 ()2-s2.0-85047101067 (Scopus ID)
Note

Validerad;2018;Nivå 2;2018-12-05 (svasva)

Available from: 2018-04-13 Created: 2018-04-13 Last updated: 2019-03-04Bibliographically approved
Reim, W. (2018). Towards a framework for product-service system business model implementation. (Doctoral dissertation). Luleå: Luleå tekniska universitet
Open this publication in new window or tab >>Towards a framework for product-service system business model implementation
2018 (English)Doctoral thesis, comprehensive summary (Other academic)
Alternative title[sv]
Implementering av affärsmodeller: Ett ramverk för produkt-tjänstesystem
Abstract [en]

Manufacturing companies are increasingly focused on service-led growth to gain new revenue streams and achieve sustainable competitive advantages. In this regard, offering product-service systems (PSS) is proposed as an attractive solution for manufacturing companies to achieve economic, environmental, and social benefits. More specifically, through the integration of provider and customer operations, efficiency is increased because each party focuses on its core competencies, and operations are optimized. For example, prolonged product lifetimes and increased resource utilization are part of the sustainability achievements that can be achieved through successful PSS implementation.

Still, successful implementation of PSS is rare. The business model has become acommon unit of analysis in PSS and the crucial factor that may differentiate successful and unsuccessful PSS companies. Revising business models toward PSS provision and the implementation of the PSS business model is a challenging process that constitutes a major reason why companies struggle to increase the service degree of their offerings. This thesis suggests that a better understanding of tactics, risk management, service network adjustment, and activity alignment is associated with PSS business model implementation. Therefore, the purpose of this thesis is to advance the understanding of PSS business model implementation.

Comprised of a cover story and five separate but interrelated articles, this dissertation explores the implementation of product-service systems business models. The results are based on a systematic literature review and four case studies with Swedish manufacturing companies. The thesis is empirical based on 107 interviews with employees from four different manufacturing companies and eight distributers of one of the case companies.

This thesis contributes to the PSS literature by proposing a four-phase PSS business model implementation framework. The framework goes beyond selecting a PSS business model to also include the configuration of related tactical sets, risk identification and management, and adjustment of the delivery practices, along with activity alignment. All phases are crucial for PSS business model implementation and therefore make specific contributions by themselves. Furthermore, by applying agency theory to mitigate adverse customer behavior, this thesis contributes to the increased legitimacy of the PSS research field.

Place, publisher, year, edition, pages
Luleå: Luleå tekniska universitet, 2018
Series
Doctoral thesis / Luleå University of Technology 1 jan 1997 → …, ISSN 1402-1544
National Category
Business Administration Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-68716 (URN)978-91-7790-148-8 (ISBN)978-91-7790-149-5 (ISBN)
Public defence
2018-09-05, A109, Luleå, 09:30 (English)
Opponent
Supervisors
Available from: 2018-05-14 Created: 2018-05-14 Last updated: 2018-11-27Bibliographically approved
Reim, W., Rönnberg Sjödin, D. & Parida, V. (2017). Adaption of  Product-Service System (PSS) Business Model Innovations in Global Distribution Networks. In: : . Paper presented at 24th International Product Development Management Conference IPDMC, 2017, Reykjavik, Iceland, June 11-13, 2017.
Open this publication in new window or tab >>Adaption of  Product-Service System (PSS) Business Model Innovations in Global Distribution Networks
2017 (English)Conference paper, Published paper (Refereed)
Abstract [en]

Offering product-service systems (PSS) is argued to result in significant benefits to economic, environmental and social sustainability but also entails a significant challenges related to relational dynamics between the manufacturer and the service providers belonging to the distributer network. As most large manufacturing companies operate globally, their delivery network partners also tend to be globally distributed. This adds to heterogeneity within the global distribution network, where products and services sales largely relay upon readiness and willingness of their distributers to sell PSS innovations successfully. Thus, firms must actively manage the resistance in the distributer network to adopt and implement PSS business model innovations. Therefore, the purpose of this paper is to investigate how manufacturing companies can facilitate adoption of PSS business model innovations among their global distributer network. In a single case study we interviewed 23 respondents from the headquarter, regional managers and distributer network which resulted in unique insides about the challenges, needs and expectations of the different functions and how they differ from each other. The data clearly reveals that the distributer network varies significantly in terms of their readiness and ability to offer advanced services. The distributers can be classified based on the PSS business models that they are currently offer or based on certain characteristics that influence their possibility to offer advanced services (e.g. customer characteristics, market characteristics and distributer capabilities). Based on this classification and the individual challenges of the distributers, support mechanisms for managing PSS adoption in a global distributer network were identified. The mechanisms differ based on the maturity of the distributer and based on whether they support the value creation, value delivery or value capture (business model elements). The findings show that the distributers need to be treated differently based on their maturity level in order to adopt PSS successfully and that the manufacturer need to be actively involved in the development of all distributors.

National Category
Economics and Business Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-65760 (URN)
Conference
24th International Product Development Management Conference IPDMC, 2017, Reykjavik, Iceland, June 11-13, 2017
Available from: 2017-09-21 Created: 2017-09-21 Last updated: 2017-11-24Bibliographically approved
Reim, W., Lenka, S., Frishammar, J. & Parida, V. (2017). Implementing Sustainable Product–Service Systems Utilizing Business Model Activities. Paper presented at 9th CIRP IPSS Conference: Circular Perspectives on Product/Service-Systems, Copenhagen, Denmark, 19-21 2017. Procedia CIRP, 64, 61-66
Open this publication in new window or tab >>Implementing Sustainable Product–Service Systems Utilizing Business Model Activities
2017 (English)In: Procedia CIRP, ISSN 2212-8271, E-ISSN 2212-8271, Vol. 64, p. 61-66Article in journal (Refereed) Published
Abstract [en]

To stay competitive and comply with government legislation, many global manufacturing companies try to diminish their environmental impact and avoid commoditization of their products by offering sustainable product–service systems (PSS). Offering PSS successfully is highly challenging, however, and significant interfirm heterogeneity exists with regard to successful PSS provision. Based on multiple case studies in two global manufacturing companies, the importance of the business model as an organizing device to align and coordinate key activities and scarce resources in PSS is highlight. The analysis provides insights into the underlying building blocks that will help firms implement a PSS business model and provides new implications for analyzing and improving PSS offers.

Place, publisher, year, edition, pages
Elsevier, 2017
National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-63723 (URN)10.1016/j.procir.2017.03.130 (DOI)000414528200011 ()2-s2.0-85021843145 (Scopus ID)
Conference
9th CIRP IPSS Conference: Circular Perspectives on Product/Service-Systems, Copenhagen, Denmark, 19-21 2017
Note

2017-06-05 (andbra);Konferensartikel i tidskrift

Available from: 2017-06-05 Created: 2017-06-05 Last updated: 2019-08-19Bibliographically approved
Reim, W., Parida, V. & Sjödin, D. R. (2016). Risk Management for Product-Service Systems Operation (ed.). Paper presented at . International Journal of Operations & Production Management, 36(6), 665-686
Open this publication in new window or tab >>Risk Management for Product-Service Systems Operation
2016 (English)In: International Journal of Operations & Production Management, ISSN 0144-3577, E-ISSN 1758-6593, Vol. 36, no 6, p. 665-686Article in journal (Refereed) Published
Abstract [en]

Purpose – The present study proposes a product-service systems (PSS) risk management decision-making framework for PSS operation, which can enable global manufacturing companies to offer PSS successfully. Thus, we aim to contribute primarily to developing the PSS literature by integrating insights from the literatures on risk management and decision making. Design/methodology/approach – This study is based on an exploratory, single case study with a Swedish manufacturing company that has long-term experience with providing PSS. In total, we conducted 25 semi-structured interviews with diverse respondents from different functional units. Findings – The study’s main findings include identifying and proposing an interconnection between the operational risks associated with providing PSS, possible risk management responses, and decision criteria, all of which enable decision makers to select an appropriate risk management response. Research limitations/implications – Our study contributes to the literature in three ways. First, we classify PSS operational risks into three categories related to delivery competence risks, technical risks, and behavioural risks. Second, we explain conditions under which each risk can be mitigated using different risk management strategies (avoidance, reduction, sharing/transfer, and retention). Finally, we combine different risk categorizations, decision criteria, and risk responses into an integrated decision framework of PSS risk management.Originality/value – Our novel contribution is developing a PSS risk management decision support framework, which holds theoretical and practical value.

National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-12036 (URN)10.1108/IJOPM-10-2014-0498 (DOI)000379678100003 ()2-s2.0-84968563077 (Scopus ID)b170b452-cba9-4657-b853-b1cf2ad7dbda (Local ID)b170b452-cba9-4657-b853-b1cf2ad7dbda (Archive number)b170b452-cba9-4657-b853-b1cf2ad7dbda (OAI)
Note
Validerad; 2016; Nivå 2; 20151105 (davron)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved
Reim, W., Parida, V. & Örtqvist, D. (2015). Product-Service Systems (PSS) Business Models and Tactics: A Systematic Literature Review (ed.). Paper presented at . Journal of Cleaner Production, 97, 61-75
Open this publication in new window or tab >>Product-Service Systems (PSS) Business Models and Tactics: A Systematic Literature Review
2015 (English)In: Journal of Cleaner Production, ISSN 0959-6526, E-ISSN 1879-1786, Vol. 97, p. 61-75Article in journal (Refereed) Published
Abstract [en]

Studies on Product–Service Systems (PSS) are emerging as a growing body of literature driven by the desire to combine economic prosperity and sustainable resource management. However, knowledge about how companies can adopt and implement PSS has remained limited. In this study, a systematic literature review is conducted related to understanding implementation of PSS business models and five sets of tactical practices. Based on an in-depth analysis of 67 articles, it was found that PSS is increasing rapidly as a research field, which is spread across a variety of disciplines and research domains. More specifically, research findings were accumulated from the field to present a framework supporting the implementation of well-established categories of PSS business models, that is, product-oriented, use-oriented, and result-oriented business models. Each business model category is linked to five operational-level tactics that ensure the model can be implemented successfully and subsequently generates value. These tactical sets include 1) contracts, 2) marketing, 3) networks, 4) product and service design, and 5) sustainability operational practices. This study concludes by proposing suggestions for future research.

National Category
Other Engineering and Technologies not elsewhere specified
Research subject
Entrepreneurship and Innovation
Identifiers
urn:nbn:se:ltu:diva-9311 (URN)10.1016/j.jclepro.2014.07.003 (DOI)000355370800007 ()2-s2.0-84928769260 (Scopus ID)7e8407db-d731-44e1-9c98-8d0d0a65dadb (Local ID)7e8407db-d731-44e1-9c98-8d0d0a65dadb (Archive number)7e8407db-d731-44e1-9c98-8d0d0a65dadb (OAI)
Note
Validerad; 2015; Nivå 2; Bibliografisk uppgift: Special Volume: Why have ‘Sustainable Product-Service Systems’ not been widely implemented?; 20140707 (vinpar)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved
Organisations
Identifiers
ORCID iD: ORCID iD iconorcid.org/0000-0002-8939-5509

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