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

Wang, Xiaojun; Chen, Xu; Durugbo, Christopher; Cai, Ziming


Xiaojun Wang

Xu Chen

Christopher Durugbo

Assistant Professor


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 networkoriented
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 networkoriented
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 decisionmaking
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.

Journal Article Type Article
Publication Date Sep 12, 2018
Print ISSN 0254-5330
Electronic ISSN 1572-9338
Publisher Springer Nature
Peer Reviewed Peer Reviewed
APA6 Citation Wang, X., Chen, X., Durugbo, C., & Cai, Z. (2018). Manage risk of sustainable product-service systems: a case-based operations research approach. Annals of Operations Research, doi:10.1007/s10479-018-3051-4. ISSN 0254-5330
Keywords Sustainability, Product-service systems, Supply network risks, Multi-criteria decision-making
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