Comparative Study of the Role of Digital Technologies in Implementing Circular Economy Practices in Product-Service Systems (PSS) : An Analysis Across Varying Organizational Scales

University essay from KTH/Produktionsutveckling

Abstract: This thesis investigates the integration of digital technologies (DT) within Product-Service Systems (PSS) and their role in promoting Circular Economy (CE) practices. Despite increasing recognition of digitalization in industries with PSS offerings, research on DT as a catalyst for CE, especially across organizations of various sizes, remains limited. This study explores how DT can revolutionize PSS, leading to more sustainable and efficient operations aligned with CE principles across varying industries sizes. The research employs a qualitative, multiple-case study approach, examining various industries to comprehend the diverse applications and implications of DT in PSS. Through an extensive review of existing literature and empirical data from case studies, the study identifies the implications, challenges, opportunities, and strategic dimensions of leveraging DT in PSS for CE. Key findings reveal that DT significantly enhances the efficiency, flexibility, and sustainability of PSS operations, aiding a transition towards CE. The study emphasizes the critical role of DT in resource optimization, waste reduction, and value creation, which are essential for sustainable business practices. However, it also underscores the diverse challenges faced by organizations, including technological adaptability, cost implications, and the need for tailored strategies across different organizational sizes. The thesis concludes with strategic insights for organizations, policymakers, and researchers, emphasizing the need for collaborative efforts to maximize the benefits of DT in PSS for promoting CE values. The study also advocates for a future where digital technologies are central to achieving a circular business model, and underlines the importance of strategic and effective technology adoption in the PSS sector.

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