Clarifying the Concept of Product-Service System

A new trend of product-service systems (PSS) that has the potential to minimise environmental impacts of both production and consumption is emerging. This article attempts to build a theoretical framework for PSS and serves as a background for identifying possible investment needs in studying them. There are three main uncertainties regarding the applicability and feasibility of PSS: the readiness of companies to adopt them, the readiness of consumers to accept them, and their environmental implications. The main finding is that successful PSSs will require different societal infrastructure, human structures and organisational layouts in order to function in a sustainable manner. Keywords: product-service systems, sustainability, functional econom