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

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...

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Main Authors: Pallaro, Estelle, Subramanian, Nachiappan, Abdulrahman, Muhammad D., Liu, Chang, Tan, Kim Hua
Format: Article
Published: Elsevier 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/41189/
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author Pallaro, Estelle
Subramanian, Nachiappan
Abdulrahman, Muhammad D.
Liu, Chang
Tan, Kim Hua
author_facet Pallaro, Estelle
Subramanian, Nachiappan
Abdulrahman, Muhammad D.
Liu, Chang
Tan, Kim Hua
author_sort Pallaro, Estelle
building Nottingham Research Data Repository
collection Online Access
description 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.
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spelling nottingham-411892020-05-04T17:58:58Z https://eprints.nottingham.ac.uk/41189/ Review of sustainable service-based business models in the Chinese truck sector Pallaro, Estelle Subramanian, Nachiappan Abdulrahman, Muhammad D. Liu, Chang Tan, Kim Hua 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. Elsevier 2016-07-30 Article PeerReviewed Pallaro, Estelle, Subramanian, Nachiappan, Abdulrahman, Muhammad D., Liu, Chang and Tan, Kim Hua (2016) Review of sustainable service-based business models in the Chinese truck sector. Sustainable Production and Consumption . ISSN 2352-5509 Result-oriented product–service system; Sustainable business model; Truck industry; China; Sustainability https://doi.org/10.1016/j.spc.2016.07.003 doi:10.1016/j.spc.2016.07.003 doi:10.1016/j.spc.2016.07.003
spellingShingle Result-oriented product–service system; Sustainable business model; Truck industry; China; Sustainability
Pallaro, Estelle
Subramanian, Nachiappan
Abdulrahman, Muhammad D.
Liu, Chang
Tan, Kim Hua
Review of sustainable service-based business models in the Chinese truck sector
title Review of sustainable service-based business models in the Chinese truck sector
title_full Review of sustainable service-based business models in the Chinese truck sector
title_fullStr Review of sustainable service-based business models in the Chinese truck sector
title_full_unstemmed Review of sustainable service-based business models in the Chinese truck sector
title_short Review of sustainable service-based business models in the Chinese truck sector
title_sort review of sustainable service-based business models in the chinese truck sector
topic Result-oriented product–service system; Sustainable business model; Truck industry; China; Sustainability
url https://eprints.nottingham.ac.uk/41189/
https://eprints.nottingham.ac.uk/41189/
https://eprints.nottingham.ac.uk/41189/