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Manage risk of sustainable product–service systems: a case-based operations research approach

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Abstract

Sustainable product–service systems (SusPSSs) offer an innovation-driven approach to production based on providing results or functions with minimal material use and emissions. Networks of SusPSSs partners are central to the decision-making of sustainability policies. Evaluations and assessments of network-oriented risks sources are therefore crucial to informing an industrial firm’s reorientation towards SusPSS. Traditionally, these risks beleaguer production and continue to grow in significance with complex production and innovation processes. This article presents a novel operations research application for evaluating network-oriented risks of industrial firms in pursuing SusPSSs. The model conceptualises a framework for network risk metrics and applies a fuzzy-based multi-criteria decision-making technique to evaluate levels of risk associated with reorientations to SusPSS approaches. It takes explicit account of multiple risk sources in aiding decision-making and assists in indicating strategies for improving business sustainability. In addition, it compares and ranks alternative SusPSSs as a system and on an indicator basis, which is a practical and effective decision support tool. A case study of an industrial firm is conducted to verify the effectiveness and applicability of the proposed approach in supporting firms’ decision on SusPSSs.

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Acknowledgements

This research is partially supported by the National Natural Science Foundation of China (Nos. 71272128, 71432003, 91646109).

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Authors and Affiliations

  1. School of Economics, Finance and Management, University of Bristol, Bristol, BS8 1TN, UK

    Xiaojun Wang

  2. School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, 611731, China

    Xu Chen

  3. Liverpool Management School, University of Liverpool, Liverpool, L69 7ZH, UK

    Christopher Durugbo

  4. Nottingham University Business School, University of Nottingham, Nottingham, NG8 1BB, UK

    Ziming Cai

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Correspondence to Xu Chen.

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Wang, X., Chen, X., Durugbo, C. et al. Manage risk of sustainable product–service systems: a case-based operations research approach. Ann Oper Res 291, 897–920 (2020). https://doi.org/10.1007/s10479-018-3051-4

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