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Lessons learned from a successful industrial product service system business model: emphasis on financial aspects

Maicon Gouvêa de Oliveira (Institute of Science and Technology, Federal University of Alfenas, Poços de Caldas, MG, Brazil)
Glauco Henrique de Sousa Mendes (Production Engineering Department, Federal University of São Carlos, São Carlos, SP, Brazil)
Andrei Aparecido de Albuquerque (Production Engineering Department, Federal University of São Carlos, São Carlos, SP, Brazil)
Henrique Rozenfeld (Production Engineering Department, University of São Paulo, São Carlos, SP, Brazil)

Journal of Business & Industrial Marketing

ISSN: 0885-8624

Article publication date: 3 April 2018

1197

Abstract

Purpose

The purpose of this study is to identify the elements of the product-service system (PSS) business model of a Brazilian company that has been running it for almost 50 years. It describes the PSS business model and gives special attention to the financial aspects of PSS implementation and to contingent factors of this emerging country.

Design/methodology/approach

The research is based on a single case study. Data have been collected through interviews and document analysis. Results and implications are obtained using Canvas framework to structure information and comparison between theory and practice.

Findings

Results described in this paper show that the PSS design and implementation can be strongly influenced by financial and contingent factors. This case indicates that the implementation of PSS business models can follow diverse paths and configurations to fit with companies’ organizational features, local regulations and economic factors, including mixed transactional models and less demanding financial assessments.

Originality/value

This paper provides a roadmap of lessons learned from a multinational manufacturer that has been following the PSS business model for almost 50 years. This paper offers key insights concerning financial aspects and contingency factors that might influence servitization adoption.

Keywords

Acknowledgements

The authors would like to thank the São Paulo Research Foundation (FAPESP) for its financial support to this project. In addition, we also would like to thank the anonymous reviewers and the editor for their helpful comments.

Citation

Oliveira, M.G.d., Mendes, G.H.d.S., Albuquerque, A.A.d. and Rozenfeld, H. (2018), "Lessons learned from a successful industrial product service system business model: emphasis on financial aspects", Journal of Business & Industrial Marketing, Vol. 33 No. 3, pp. 365-376. https://doi.org/10.1108/JBIM-07-2016-0147

Publisher

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Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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