Supply Chain Capabilities to Improve Sustainability Performance of Product-Service Systems

Abstract

This study aims to investigate the supply chain (SC) capabilities required for manufacturers, intermediaries and service partners to improve the Sustainability Performance of Product- Service Systems (SPOPSS). A considerable challenge faced by the SC is how manufacturers collaborate with intermediaries and service partners to develop SC capabilities in order to improve SPOPSS. This paper presents a conceptual framework using dynamic capabilities theory for investigating the relationship between SC capabilities and SPOPSS. By qualitative approach through semi-structured interviews with six senior managers from four motorcycle companies-manufacturers and intermediaries, the conceptual framework was validated using thematic analysis. This study identified six SC capabilities: collaboration, partner development and knowledge transfer, innovative service delivery, reflexive control, re-conceptualisation and sustainable product-service capability to improve SPOPSS, also identified microfoundation of dynamic capabilities for each six SC capabilities. The findings proposed two significant contributions to the body of knowledge; first, by developing six identified SC capabilities to improve SPOPSS; and second, by presenting qualitative empirical evidence on how these SC capabilities' development is inseparable from the SC and could be interactively transferred from manufacturers through intermediaries to a network of service partners.