Achieving Circularity through Novel Product-Service Systems in the Mining Industry: An Opportunity for Circularity

Abstract

The evolution toward sustainable mining can be achieved by implementing circular economies (CEs), and one way forward is via product-service systems (PSSs). However, applying PSSs in the mining industry is an area with little extant research. We seek to contribute to CE and sustainability research by proposing a model by which mining companies can achieve circularity through their suppliers: something which has not yet been explored. First, we present a critical literature review of published papers about the barriers and benefits in industries where servitization or PSS has been applied. We discuss barriers impeding PSS implementation in the mining industry, along with related concepts including CE and PSSs in digital technologies. With this study we hope to draw more discussion to the topic of PSSs in the mining industry and provide useful guidelines to academics and industry professionals for PSS implementation in mining: an important step toward circularity.

Product-Services for a Resource-Efficient and Circular Economy: An Updated Review

“…Overall, the concept of PSS has remained relatively stable throughout the years. A PSS is most often defined in the literature as an integrated set of tangible products and intangible services designed and combined so that they are jointly capable of fulfilling final customer needs [1,[8][9][10][11][12][13][14][15][16]. Variations in this definition are mostly associated with the perspective from which it is analyzed.…”

“…Indeed, PSSs are seen as a way to incorporate sustainability into business models [15]. However, business model perspectives do not always consider sustainability as a main factor in motivating the transition to servitization.…”

“…While as a business strategy, PSSs emphasize the creation and delivery of value through the integration of products, services, and even information and data in order to provide a comprehensive solution to the consumer, servitization refers to a broader strategic transformation process that involves shifting from a product-centric business model to one focused on delivering services alongside or instead of physical products [15]. It encompasses and requires organizational changes, capabilities, and mindsets to transition from a product-oriented company to one that provides value through services.…”

“…Thus, PSSs can be seen as a specific business model that focuses on providing comprehensive solutions, while servitization represents a broader transformation towards a service-centric business model. Servitization encompasses changes in organizational strategy, capabilities, and the delivery of value through services, while PSSs are one example of how servitization can be implemented [15]. Servitization has the potential to enhance a company's capacity to provide a superior customer experience.…”

“…There is a growing body of literature on the relationship between servitization business models and the CE, but only a few articles connect these two concepts to PSSs [53]. Still, PSS-based circular business models are widely acknowledged in scientific and industrial research as the most suitable for achieving circularity [15]. Reference [45] points to the fact that the merging of digitalization and servitization provides the occasion to satisfy the demands of a new reality and consumer market, leading to a greater integration of PSSs in industry.…”