Developing a conceptual framework of product-service system management toward firms’ sustainability for Indonesian industrial estate firms

Abstract

Industrial estate firms have important roles in national development through the industrial development. In the course of their life, industrial estate firms ought to follow the firm life cycle pattern. The common pattern shows that the period, in which the firm experiences profit increase, will be directly followed by consistent profit and profit decrease. Should the strategy realization are not precisely implemented during each stage, especially the decreases period, it will be difficult for the firm to survive. A strategy that can be implemented by industrial estate firms in order to be sustained is to manage Product-Service System (PSS). It is a well-known concept in creating opportunities for a new business model in which firms can offer bundles of products and services to their customers instead of merely tangible products. PSS can be distinguished into three types of categorization consist of different compositions of products and services and different business activities. Each type of PSS and business activities can be applied at the stages of the firm life cycle in accordance with its condition to maintain the company's sustainability at every stage of its life cycle. In this article, we construct a conceptual framework to help Indonesian industrial estate firm to be alert on the need to focuses on providing services instead of only selling products. This article also shows that different PSS management would be needed in particular stages of firm life cycle. Applying suitable PSS and business activities based on PSS in each stage of the firm life cycle can lead to gaining a competitive advantage and sustainable industrial estate firms. This article's novelty is to combine the PSS concept concerning each stage of firm life cycle at industrial estate firms.