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Review of sustainable service-based business models in the Chinese truck sector

Pallaro, Estelle; Subramanian, Nachiappan; Abdulrahman, Muhammad D.; Liu, Chang; Tan, Kim Hua

Authors

Estelle Pallaro

Nachiappan Subramanian

Muhammad D. Abdulrahman

Chang Liu

KIM TAN kim.tan@nottingham.ac.uk
Professor of Operations and Innovation Management



Abstract

Growth of global sales of new trucks in emerging economies is substantial however, in China the growth of sales is expected to be only 1% for 2014–2024. The limited sales growth forecast and an intense market competition make it imperative for truck manufacturers in China to diversify their revenue earnings through service-based business models for the Chinese market. Typically, Chinese service based business models need to be sustainable by considering environmental and social factors in the manufacturer’s business model. This paper reviews existing product–service systems (PSS) and service-based business models in the automotive sector to identify how truck manufacturers could reorient their current business model with respect to the Chinese context to enhance customer satisfaction, profitability and sustainability. The analysis indicates that most of the studies in the automotive sector have focused on product-oriented or use-oriented business models with respect to car segment specifically in the developed markets. Besides, sustainability issues related to vehicle end-of-life management are rarely considered. Our findings suggest that the Chinese truck sector needs an integrated result-oriented PSS business model which could be implemented in other developing countries.

Citation

Pallaro, E., Subramanian, N., Abdulrahman, M. D., Liu, C., & Tan, K. H. (2017). Review of sustainable service-based business models in the Chinese truck sector. Sustainable Production and Consumption, 11, 31-45. https://doi.org/10.1016/j.spc.2016.07.003

Journal Article Type Article
Acceptance Date Jul 25, 2016
Online Publication Date Jul 30, 2016
Publication Date 2017-07
Deposit Date Mar 9, 2017
Publicly Available Date Mar 29, 2024
Journal Sustainable Production and Consumption
Electronic ISSN 2352-5509
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 11
Pages 31-45
DOI https://doi.org/10.1016/j.spc.2016.07.003
Keywords Result-oriented product–service system; Sustainable business model; Truck industry; China; Sustainability
Public URL https://nottingham-repository.worktribe.com/output/798394
Publisher URL https://doi.org/10.1016/j.spc.2016.07.003

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