How does the adoption of Product-Service Systems impact the financial performance of businesses

Details

Supervisors

De Rongé, Yves

Faculty

Louvain School of Management

Degree label

Master [120] en sciences de gestion, à finalité spécialisée

Abstract

Nowadays, the circular economy is becoming more popular. A growing number of people have encountered the term “sustainability” and are curious to deepen their understanding of it. Moreover, many companies are facing changes in their businesses and are shifting or at least integrating some environmental practices. Given this trend, a significant number of organisations are interested in this field and seek to understand how this model affects their core businesses. Consequently, analysing circular models, particularly the Product-Service System model, is crucial for evaluating their financial impacts. In response to this, the purpose of this master thesis is to explore the financial impact of this model on businesses. Specifically, how does the adoption of Product-Service Systems impact the financial performance of businesses? Throughout this paper, I have examined the literature on the Product-Service System model and its financial impacts on companies. I also analysed the practical aspects through qualitative research focused on eight industries. Therefore, this analysis was essential for drawing several conclusions. On the one hand, most of the financial effects described in the literature were observed in the practical part of the study. On the other hand, certain assertions were disproved by the interviewees for a particular reason. Lastly, some additional insights were gained from the qualitative research, including essential details not covered in the existing literature.