Open Access Article

Title: How the characteristics of small and medium-sized enterprises influence product-service systems design challenges

Authors: Jennie Åkesson; Angelina Sundström; Glenn Johansson; Koteshwar Chirumalla

Addresses: Digital and Circular Industrial Services Research Group, Division of Product Realisation, School of Innovation, Design and Engineering, Mälardalen University, Sweden ' Digital and Circular Industrial Services Research Group, Division of Product Realisation, School of Innovation, Design and Engineering, Mälardalen University, Sweden ' Department of Design Sciences, Lund University, Sweden; Division of Product Realisation, School of Innovation, Design and Engineering, Mälardalen University, Sweden ' Digital and Circular Industrial Services Research Group, Division of Product Realisation, School of Innovation, Design and Engineering, Mälardalen University, Sweden

Abstract: Manufacturing companies can contribute to a resource-efficient society by designing product-service systems (PSS). Despite the increased importance of PSS for the manufacturing industry in their efforts to become sustainable, few studies focus on small and medium-sized enterprises (SMEs). The study presented in this article aims to add knowledge on how the characteristics of SMEs influence the challenges SMEs experience when designing PSS. It employs a multiple case study design where data are based on interviews, workshops, and internal archive documents from three contract manufacturing SMEs. The analysis suggests that nine SME characteristics influence the challenges SMEs experience when designing PSS. It also shows that SMEs' different characteristics influence one or more challenges, and that SMEs have a short-term horizon and a reactive business approach which influences the overall challenge of designing PSS. [Submitted 15 November 2022; Accepted 13 April 2023]

Keywords: product-service systems; PSS; servitisation; small and medium-sized enterprises; SME; firm characteristics; challenges; sustainability; manufacturing companies; contract manufacturing.

DOI: 10.1504/IJMR.2023.135646

International Journal of Manufacturing Research, 2023 Vol.18 No.4, pp.434 - 453

Received: 15 Nov 2022
Accepted: 13 Apr 2023

Published online: 20 Dec 2023 *