The themes of technological innovation, entrepreneurship, and organizing

PSS as Enabler for SOIs

This case study emphasizes another profound effect of PSS, which is unveiled in our findings: PSS can function as economic enabler for SOIs - and more generally, for product innovations (Manzini & Velozzi, 2002). By selling the utility of products, rather than transferring ownership, the price of using a product for the first time drops significantly, hence minimizing economic entry barriers to using products and/or services (Mont, 2001, 20). This is extremely important in developing countries where relatively high pur­chasing prices constitute significant barriers to the diffusion of products. Introducing sustainability - oriented product innovations through a PSS can thus be a good strategy to maximize positive sustainability effects (Figure 1). Future research should thus analyze the role of PSS for successfully introducing radical SOIs, either in niche markets or at transition into mass markets.