Product-Service Systems for the circular economy: the “4R” challenges

Purpose: It has been advocated that servitization could effectively support the implementation of the Circular Economy paradigm. This study aims to investigate how servitized business models could support the adoption of different circular economy strategies by manufacturing companies. Design/Methodology/Approach: A review of the literature systematizes the most relevant typologies of Product Service Systems business models, and the main features of the “4R” strategies of Circular Economy, and their potential connection. Moreover, three exemplary cases have been analyzed to cover the “4Rs”, and to identify common and specific characteristics and challenges of adopting these strategies in practice. Findings: the three cases unveil specific synergies among the “Reduce” strategy of circular economy and different types of PSS, showing that the relationship with product-oriented services is more nuanced than expected. When addressing the “Reuse” or “Recycle” strategies, the role of different supply chain actors different from the OEM appear as crucial showing the importance of supply chain coordination in servitization. Originality/Value: This study is among the first attempts to analyse together the Servitization and “4R” circular economy perspectives, exploring their potential connections. The preliminary findings provide a promising ground to develop further research and consolidate the conceptual insights here suggested as well as to provide food for thought for decision makers in company wishing to move to more sustainable business models.