Exploring product-service system innovation opportunities through the perspective of systemic rebound-effect

Abstract

Sustainability has emerged as a critical aspect in determining a business's long-term success. This has positioned PSS as a business model at the forefront of the sustainability issue. However, recent research shows that PSS offers a slew of features that perform well in one dimension but lead to problems in another. This trade-off phenomenon, termed systemic reboundeffect in this study, has not received the attention it deserves. This study aims to identify possible paths for developing PSS into a viable system. This study proposes the systemic rebound effect as a new perspective for product-service system (PSS) innovation from a new convergence view, not just at the product or service level, but rather to identify possible system-level innovations. This study proposes a model for exploring opportunities for PSS innovation through a systemic rebound effect. The model was developed through a co-creation and innovation process approach in which diverse stakeholders generated ideas. The proposed model enabled organisations to identify innovation opportunities at the system level in PSS. As a result, this study contributes to the theory and practice of PSS innovation.