Building smart product-service systems capabilities for circular supply chains in the Industry 4.0 era

• Published in: Transportation research. Part E, Logistics and transportation review Logistics and transportation review, 2024-08, Vol.188, p.103625, Article 103625
• Main Authors: Bag, Surajit, Gupta, Shivam, Chan, Hau-Ling, Kumar, Ajay
• Format: Article
• Language: English
• Subjects: Circular Supply Chains; Digital Technologies; Empirical Study; Industry 4.0; Smart Product-Service Systems; Sustainability
• ISSN: 1366-5545; 1878-5794
• DOI: 10.1016/j.tre.2024.103625

•Zero-level capabilities have a positive relationship with smart circular product-service systems capabilities.•Environmental dynamism is a significant moderator between zero-level capabilities and smart circular product-service systems capabilities.•Smart circular product-service systems capabilities have a positive relationship with financial performance and environmental performance. A smart product-service system is an integrated digital infrastructure that brings together products and services to provide clients with a full range of options. A smart product-service system is a crucial capability that enhances collaboration among several parties in a supply chain and gives businesses valuable insights into performance. This study investigates (a) the zero-level capabilities (also known as organizational capabilities) that influence dynamic capabilities (i.e., smart circular product-service systems capabilities) building in the Industry 4.0 era while environmental dynamism acts as a moderator, and (b) how the smart circular product-service systems capabilities can support firms’ (financial and environmental) performance. Based on the data collected from the manufacturers who have been actively involved in smart circular product-service system based projects, our findings reveal that three zero-level capabilities (i.e., product lifetime database creation capabilities, analytics and business intelligence capabilities and actuating capabilities) are crucial for building dynamic capabilities (i.e., smart circular product-service systems capabilities) in a volatile business environment. Besides, we also highlight how these capabilities can positively affect firms’ financial and environmental performance.