• International Journal of Technology (IJTech)
  • Vol 16, No 5 (2025)

Enhancing Green Competitive Performance of Product–Service Systems through a Dynamic Capabilities Lens

Enhancing Green Competitive Performance of Product–Service Systems through a Dynamic Capabilities Lens

Title: Enhancing Green Competitive Performance of Product–Service Systems through a Dynamic Capabilities Lens
Dian Retno Sari Dewi, Yustinus Budi Hermanto, Jaka Mulyana, Mohamed Farah

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Cite this article as:
Dewi, DRS, Hermanto, YB, Mulyana, J & Farah, M 2025, ‘Enhancing green competitive performance of product–service systems through a dynamic capabilities lens’, International Journal of Technology, vol. 16, no. 5, pp. 1816-1833

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Dian Retno Sari Dewi Industrial Engineering, Universitas Katolik Widya Mandala Surabaya, Kalijudan 37, Surabaya 60114, Indonesia
Yustinus Budi Hermanto Faculty of Economic and Business, Universitas Katolik Darma Cendika, Dr. Ir. H Soekarno 201, Surabaya 60117, Indonesia
Jaka Mulyana Industrial Engineering, Universitas Katolik Widya Mandala Surabaya, Kalijudan 37, Surabaya 60114, Indonesia
Mohamed Farah Education Focused, RMIT University, 124 La Trobe Street, Melbourne, Victoria 3000, Australia
Email to Corresponding Author

Abstract
Enhancing Green Competitive Performance of Product–Service Systems through a Dynamic Capabilities Lens

Incorporating environmental awareness into business operations while maintaining competitive performance is a significant challenge. To address this, many companies are enhancing their offerings by integrating services with products—a strategy known as product–service systems (PSS). This innovation aims to boost competitiveness and promote environmental consciousness. However, although PSS is recognized as a valuable approach for staying competitive, the interplay between PSS and its influencing capabilities remains insufficiently explored. This study examines the relationships among Organizational Learning Development (OLD), Supply Chain Integration (SCI), Supply Chain Digitalization (SCD), Supply Chain Agility and Resilience (SCAR), Green Supply Chain (GSC), and Product–Service Systems’ Green Competitive Performance (PSSGCP). Data were gathered through a structured survey involving 502 official motorcycle service partners in Indonesia and analyzed using SEM. The results confirm significant positive relationships between GSC and PSSGCP and between SCAR and PSSGCP. Moreover, OLD, SCI, and SCD each positively influence SCAR, whereas only OLD and SCD have direct positive effects on GSC. The analysis also reveals that OLD positively influences SCI, which subsequently impacts SCD—indicating that SCD mediates the influence of SCI on GSC. These findings provide practical and theoretical insights that enable managers and researchers to better align green and competitive performance goals. Furthermore, managers can assess the standardized loadings to evaluate each capability’s contribution to enhancing PSSGCP.

Agile supply chain; Green competitive performance; Green supply chain; Product–service systems; Supply chain resilience

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