The themes of technological innovation, entrepreneurship, and organizing

PSS and its Effects on Sustainability

The effects of PSS on sustainability have been generally discussed elsewhere with regard to developed countries (e. g. Mont, 2004). We could identify those effects within this case study again to support the following findings: firstly, by in­troducing a PSS (instead of mere product sales), the resource efficiency could be significantly increased (by using the batteries more often). Secondly, the PSS leads to an extension of the responsibilities of the manufacturer. The com­pany now owns batteries and lamps and is hence responsible for their recycling and disposal. This is extremely important in the presented case, as both components incorporate toxic and environ­mentally harmful materials. The case illustrates an additional positive effect resulting from the shift of responsibility: as OSRAM is responsible for the recharging of the batteries, it adds to the positive sustainability impacts by integrating solar power to its system. The use of solar panels is only feasible by taking advantage from economies of scale at the recharging stations. This finding sup­ports research on PSS, in which the generation of synergies is explicitly mentioned as a major benefit of PSS (Manzini & Velozzi, 2002).

More generally, Pawar et al. (2009) identi­fied the challenge of “designing value” in order

Table 5. Overall assessment of sustainability effects

Target dimension



Life-cycle phases

Use/ maintenance

End of life



~20% lower energy costs



Company: lower economical entry barri­ers through rental and thus creation of new markets




Zero emissions

Fewer pollution from kerosene

Fewer pollution from kerosene Risk of mercury disposal Risk of battery disposal


Access to clean and renewable energy sources

Recycling and disposal of lamps and batteries



Zero air pollution

Zero accidents from kerosene lamps Improved living standards and education

Risk of mercury Risk of battery disposal


Access to improved lighting (long-term: new job possibilities)


to successfully implement PSS. Furthermore, the need of being able “to model” a PSS was identified (Baines et al., 2007). The presented approach - especially the separate evaluation of technological and PSS levels - may add value by providing an in-depth understanding on how and where value is created and where additional value might be created. Hence, the taken approach may add to the further understanding of a PSS’s sustainability effects.

The themes of technological innovation, entrepreneurship, and organizing

About the Contributors

Farley S. Nobre (PhD, MSc, BSc) is Professor at the School of Management of Federal University of Parana, Brazil. His research interests include organizations, knowledge management systems, innova­tion and sustainability. …

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Farley Simon Nobre Federal University of Parana, Brazil ABSTRACT This chapter proposes innovative features of future industrial organizations in order to provide them with the capabilities to manage high levels …

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