Investigating the relationship between product–service systems supply chain capabilities and the sustainability performance: a case of the Indonesian motorcycle industry

Product–service systems (PSS) have become a major subject of concern for the motorcycle industry because of their benefits and the possibilities they provide to reduce the negative impact of this industry on the environment and achieve sustainability performance. As a result, it is essential to recognise how the motorcycle industry can benefit from PSS to achieve sustainability performance. While previous research has identified the relationship between various PSS supply chain (SC) capabilities and the sustainability performance in developed countries, there has been little research on these topics performed for developing countries. Moreover, this study addresses a research gap in the PSS literature by incorporating the concept of sustainable supply chain management (SSCM) which provides a broader perspective of the product life cycle concept within a single framework. Underpinned by the concept of dynamic capabilities, this study investigates the relationship between PSS SC capabilities and the sustainability performance. Through a comprehensive literature review, a framework that postulates various PSS SC capabilities, including collaboration, knowledge assessment, partner development, reflexive control, innovative service delivery, re-conceptualisation, sustainable product–service capability and sustainability performance, is developed. Understanding the various PSS SC capabilities that affect sustainability performance makes theoretical contributions of paramount importance and delivers implications essential for motorcycle practitioners and policy makers.

A parallel mixed method approach was utilised in this study. A research model was developed primarily based on the literature and underpinned by the concept of dynamic capabilities. The research model was then synthesised with the data obtained from the qualitative study. The quantitative analysis of this study was based on data collected from a survey of 447 managers in service partners within the Indonesian motorcycle industry. Structural equation modelling was then used to evaluate the significance of collaboration, knowledge assessment, partner development, reflexive control, innovative service delivery, re-conceptualisation and sustainable product–service capability on sustainability performance from the perspective of these Indonesian motorcycle service partners. Parallel with the quantitative study, qualitative data were collected through interviews with six managers from manufacturers and intermediaries in the Indonesian motorcycle industry. The quantitative study proposes and evaluates in the research model several new constructs and mediation roles that have not been sufficiently addressed in previous studies. After synthesising the quantitative and qualitative findings, this study provides a revised framework consisting of four dimensions - PSS drivers, partnership, PSS development and sustainability practices - that could have an effect on sustainability performance. This then leads to the development of several recommendations for improving sustainability performance of relevance to both policy makers and practitioners in the motorcycle industry.

This study has made a notable contribution from both a theoretical and practical perspective. From a theoretical perspective, this study provides a useful contribution to the existing body of knowledge, particularly through development of a model for investigating the relationship between PSS SC capabilities and the sustainability performance. The study utilised the concept of dynamic capabilities to conceptualise the relationships between PSS SC capabilities and sustainability performance. Also, using mixed methods allows this study to recognise the multiple roles that those in the SC, the manufacturers, main dealers and service partners, play in the development of PSS SC capabilities. Furthermore, to address a research gap in the PSS literature, this study incorporated the concept of SSCM to provide a broader perspective of the product life cycle concept within a single framework, thereby expanding the theory.

From a practical perspective, this model delivers further guidance for policy makers and motorcycle practitioners to make effective use of this study's findings to improve the sustainability performance in the Indonesian motorcycle industry. First, this study investigated different findings from the developed countries, which then lead to findings on those PSS SC capabilities specific to the Indonesian motorcycle industry. Second, this study offers policy makers and motorcycle practitioners suggestions on better policies and strategies to continuously improve the sustainability performance in Indonesia and in other developing countries with similar characteristics. However, the limitation of this study is the scope of this study is limited to a specific industry (motorcycles) in a defined geographical area (Indonesia) to make the study feasible. Therefore, further research could apply the methods used and the resulting framework to different industries and a broader geographical scope to examine whether the identified capabilities still apply under different conditions. Future studies might conduct a cross-countries and/or cross-industries study to deliver wider generalisability for the insights in the framework.