What Makes a PSS Supplier Successful – An Analysis of the Drivers

Providing Product Service Systems (PSS) calls for companies to react flexibly and individually to their customers’ requirements and to be able to engage with them in the co-creation of value. In order to meet these changing requirements companies need to adjust their business models accordingly. Research on business models for PSS is limited. Therefore this paper analyzes the antecedents and outcomes of PSS conducting an empirical analysis, building on a questionnaire survey among 29 PSS suppliers. Results indicate that the value proposition is the essential part of the PSS business model, from which other characteristics can be derived. Companies providing PSS can generate higher revenues when they react flexibly towards their value propositions, are service-oriented and able to engage in co-design with their customers.

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