The Rise of Product-as-a-Service Models in the Digital Era Redesigning Business Models for Circular Innovation in the Horn of Africa

Abstract

Product-as-a-Service (PaaS) models are a mediating factor in the digital era when it comes to examining how business model redesign affects circular innovation in the Horn of Africa. The Kaiser-Meyer-Olkin (KMO) metric is used in the study to assess the dataset's eligibility for factor analysis on a sample of 390 enterprises. The reliability of the measurement apparatus is next verified, and the obtained factor structure is validated using confirmatory factor analysis (CFA). The chapter next looks at the PaaS models mediation impact using structural equation modeling (SEM). The findings demonstrate that reevaluating business models significantly promotes circular innovation, and PaaS models are essential as a bridge in this relationship. As this chapter demonstrates, the digital economy's resource efficiency and sustainability practices might be greatly impacted by the adoption of PaaS frameworks.