Towards smart-circular systems: An expert study of B2B business practices

Smart products and the Internet of Things are part of a new technological wave that may serve as a fundamental underpinning of a circular economy. The development and implementation of smart product-service systems (PSS) could contribute to its operationalisation. However, extant literature has highlighted the lack of understanding of the interplay among smart products, services and the circular economy. The purpose of this study is to identify how smart PSS enable the transition towards circularity. The author employs an exploratory study approach based on 34 semi-structured expert interviews with experts from industry, consultancies and research organisations. Most firms in the study have a product-oriented PSS and seek to understand the use phase with the use of smart products. Smart products have facilitated the intensification of the services offered during the use phase and the development of smart-circular services. Smart products, smart use services, and smart-circular services combined promote the transition towards mixed business models or the improvement of relational business models. These advancements point out a more significant role of circularity in both these business models.