Integrating Product-Service Systems and Energy Efficiency: A Systematic Literature Review of Business Model Innovation and Circular Economy Strategies
DOI:
https://doi.org/10.65150/EP-jmrr/V2E2/2026-07Keywords:
Product-service systems; Energy efficiency; Business model innovation; Circular economy; Servitization; Industry 4.0; Sustainable consumption; Energy-as-a-ServiceAbstract
This review argues that Product-Service Systems (PSS) offer a strategic business model for achieving energy efficiency by integrating circular economy principles and leveraging Industry 4.0 technologies. Through a systematic assessment of 591 peer-reviewed articles, the study finds that result-oriented PSS models, such as Energy-as-a-Service (EaaS) and Cooling-as-a-Service (CaaS), outperform product-centric approaches across environmental and economic outcomes. Effective implementation demands robust digital infrastructure, risk-sharing, and cultural change. The synthesis connects PSS typologies, circular economy frameworks, and technological advancements, while highlighting persistent challenges, including the service paradox, rebound effects, and consumer acceptance. This integrated framework provides actionable insights for stakeholders seeking sustainable energy consumption transitions.
References
1) Adrodegari, F. 2017. “PSS Business Model Conceptualization and Application*.” Production Planning and Control 28(15): 1251–63.
2) Adrodegari, Federico et al. 2018. “The Transition towards Service-Oriented Business Models: A European Survey on Capital Goods Manufacturers.” International Journal of Engineering Business Management 10(January).
3) Adrodegari, Federico, Nicola Saccani, and Christian Kowalkowski. 2016. “A Framework for PSS Business Models: Formalization and Application.” Procedia CIRP 47: 519–24.
4) Adrodegari, Federico, Nicola Saccani, Christian Kowalkowski, and Jyrki Vilo. 2017. “PSS Business Model Conceptualization and Application*.” Production Planning and Control 28(15): 1251–63.
5) Alozie, Modestus. 2025. “Risk Allocation and Performance Monitoring Frameworks for Construction Contracts to Enhance Project Delivery Efficiency and Sustainability Outcomes.” International Journal of Science and Engineering Applications 14: 1–15.
6) Ang, Gcj G.C.J., T. Baines, H Lightfoot, and H. Lighfoot. 2010. “A Methodology for Adopting Product Service Systems as a Competitive Strategy for Manufacturer.” CIRP IPS2 Conference 2010: 489–96. http://www.ep.liu.se/ecp/077/063/ecp10077063.pdf.
7) Annarelli, Alessandro, Cinzia Battistella, and Fabio Nonino. 2019. The Road to Servitization The Road to Servitization.
8) Baines, T. S. et al. 2007. “State-of-the-Art in Product-Service Systems.” Proceedings of the Institution of Mechanical Engineers, Part B: Journal of Engineering Manufacture 221(10): 1543–52.
9) Baines, T. S., H. W. Lightfoot, O. Benedettini, and J. M. Kay. 2009. “The Servitization of Manufacturing: A Review of Literature and Reflection on Future Challenges.” Journal of Manufacturing Technology Management 20(5): 547–67.
10) Bland, David J, and Alexander Osterwalder. 2019. “Testing Business Ideas: A Field Guide for Rapid Experimentation.” : 368.
11) Fischer, Thomas, Heiko Gebauer, Anders Gustafsson, and Lars Witell. 2009. Introduction to Product/Service-System Design Managerial Recommendations for Service Innovations in Different Product-Service Systems.
12) Gebauer, Heiko, Elgar Fleisch, and Thomas Friedli. 2005. “Overcoming the Service Paradox in Manufacturing Companies.” European Management Journal 23(1): 14–26.
13) Geissdoerfer, Martin, Paulo Savaget, Nancy Bocken, and Erik Hultink. 2017. “The Circular Economy – A New Sustainability
Paradigm?” Journal of Cleaner Production 143: 757–768.
14) Goedkoop, Mark Jacob, Cees J.G. van Halen, Harry R.M. te Riele, and Peter J.M. Rommens. 1999. Product Service Systems , Ecological and Economic Basics.
15) Haber, Nicolas, Mario Fargnoli, Massimo Tronci, and Ahmad Ababneh. 2018. “Designing Ecofriendly Product-Service Systems (PSSs) through Morphological Reasoning.” Proceedings of the International Conference on Industrial Engineering and Operations Management 2018(JUL): 313–24.
16) Moher, David et al. 2009. “Preferred Reporting Items for Systematic Reviews and Meta-Analyses: The PRISMA Statement.” PLOS
Medicine 6(7): 1–6. https://doi.org/10.1371/journal.pmed.1000097.
17) Mont, O K. 2002. “Clarifying the Concept of Product–Service System.” Journal of Cleaner Production 10(3): 237–45.
https://www.sciencedirect.com/science/article/pii/S0959652601000397.
18) Moro, S R. 2020. “Product-Service Systems Benefits and Barriers: An Overview of Literature Review Papers.” International Journal of Industrial Engineering and Management 11(1): 61–70.
19) Oliva, Rogelio, and Robert Kallenberg. 2003. “Managing the Transition from Products to Services.” International Journal of Service Industry Management 14: 160–72.
20) Osterwalder, Alexander, and Yves Pigneur. 2009. Business Model Cavas.
21) ———. 2010. “Business Model Generation: A Hits Book for Visionaries, Game Changers, i-Challengers.” In , 26–47.
22) Osterwalder, Alexander, Yves Pigneur, Greg Bernarda, and Alan Smith. 2014. “Value Proposition Design: Entwickeln Sie Produkte Und Services, Die Ihre Kunden Wirklich Wollen.” : 290.
23) Pacheco, Diego A.De J. et al. 2016. “Systematic Eco-Innovation in Lean PSS Environment: An Integrated Model.” Procedia CIRP 47: 466–71. http://dx.doi.org/10.1016/j.procir.2016.03.211.
24) Pialot, O. 2017. “‘Upgradable PSS’: Clarifying a New Concept of Sustainable Consumption/Production Based on Upgradablility.” Journal of Cleaner Production 141: 538–50. https://api.elsevier.com/content/article/eid/1-s2.0-S0959652616313257.
25) Reim, Wiebke. 2018. IS Managing Managing the the Transformation Transformation Towards Towards Towards a Framework for Product-Service Advanced Advanced Service Provision Provision System Business Service Model Implementation Wiebke Reim Sambit Sambit Lenka.
26) Reim, Wiebke, Sambit Lenka, Johan Frishammar, and Vinit Parida. 2017. “Implementing Sustainable Product-Service Systems Utilizing Business Model Activities.” Procedia CIRP 64: 61–66. http://dx.doi.org/10.1016/j.procir.2017.03.130.
27) Rosa, P, Claudio Sassanelli, and S Terzi. 2019. “Towards Circular Business Models: A Systematic Literature Review on Classification Frameworks and Archetypes.” Journal of Cleaner Production null: null.
https://www.semanticscholar.org/paper/da97a09f7925a8cf1c30c4049c1543c198d75050.
28) Sajadieh, Seyed Mohammad Mehdi, and Sang Do Noh. 2025. “A Review of Digital Twin Integration in Circular Manufacturing for Sustainable Industry Transition.” Sustainability 17(16): 1–49. https://ideas.repec.org/a/gam/jsusta/v17y2025i16p7316-d1723520.html.
29) Sassanelli, Claudio et al. 2016. “Design for Product Service Supportability (DfPSS) Approach: A State of the Art to Foster Product Service System (PSS) Design.” Procedia CIRP 47: 192–97. http://dx.doi.org/10.1016/j.procir.2016.03.233.
30) ———. 2022. “Industry 4.0 Driven Result-Oriented PSS: An Assessment in the Energy Management.” International Journal of Energy Economics and Policy 12(4): 186–203. https://ideas.repec.org/a/eco/journ2/2022-04-23.html.
31) Tukker, A. 2004. “Eight Types of Product-Service System: Eight Ways to Sustainability? Experiences from Suspronet.” Business Strategy and the Environment 13(4): 246–60.
32) Vandermerwe, Sandra, and Juan Rada. 1988. “Servitization of Business: Adding Value by Adding Services.” European Management Journal 6(4): 314–27.
33) Vezzoli, C, F Ceschin, J Diehl, and C Kohtala. 2015. “New Design Challenges to Widely Implement ‘Sustainable Product–Service Systems.’” Journal of Cleaner Production 97: 1–12. https://www.semanticscholar.org/paper/dba6b52de4fa59e778b2cc279ceec946d969a023.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Eka Sudarmaji Sudarmaji (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
