The circularity of product-service systems: the role of macro-, meso- and micro-level contextual factors

What is it about?

We challenge the assumption in the Circular Economy literature that product-service systems (PSSs) contribute to circularity by slowing and closing resource loops. We follow a theory elaboration process through three in-depth case studies of UK and German manufacturers of personal computers, power tools, and wind turbines. The findings show that the circularity contribution of PSS depends on firm contextual factors (enablers and barriers) rather than the PSS business model. Internal environmental orientation can overcome the effects of high-speed product innovation cycles and enable the slowing of resource loops.

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