Barriers towards a successful adoption of PSS: A Provider and Customer Perspective

Abstract: With the arising digital disruption and global market pressures, several manufacturing companies have recognized the strategic integration of services as a way to competitive advantage and corporate profitability, they therefore have the desire to differentiate themselves by creating new service-oriented strategies, namely Product-Service Systems (PSS). While transforming towards a PSS provider there are a number of barriers that the organization has to overcome. After an extensive literature review the authors identified 34 such barriers. Tukker (2015) argues that the number of successful adoptions of PSS among manufacturing firms is surprisingly low, despite an increased literature awareness and focus on the barriers. The identified barriers are most often seen through the manufacturers’ perspective and little is mentioned about the customers’ perspective on barriers. The gap that was identified in the literature was the lack of customers’ perspective upon these barriers. This thesis aims to investigate the perceived barriers from both the customers’- and the provider’s perspective, and to examine which barriers the provider should emphasize to have the highest potential to successfully transform into a PSS provider. We used Bosch Rexroth as a focal firm and conducted in total 29 interviews with them and their customers and a workshop with 11 participants from the provider. The data from the provider and the customers were separately analysed until the last step, where it generated a barrier spheres. The spheres were used as a foundation for the emerging framework. The framework’s step wise approach is a guideline for manufacturing firms in their efforts to overcome the barriers in order to successfully adopt PSS. This thesis is a first contribution towards shredding light upon the customers’ perspective of barriers towards PSS. Our research shows that one perspective of these barriers is insufficient, since PSS involves both the provider and the customers it should thereby include both perspectives. The managerial implications of this thesis is partly the framework but also the importance for a provider to work closely to their customers and build strong relationships in order to overcome to barriers towards PSS together.