Purpose: The implementation of Product-Service-Systems (PSSs) in real estate development project could support the shift of the real estate sector towards a more Circular Economy. With the implemen-tation of these system responsibilities of products remain with the suppliers of these products. This incentives suppliers to design products which fit in closed material loops. Much attention was paid by scientists and practitioners about the implementation of these PSSs in practice. However, a knowledge gap still exists about how Product-Service-Systems function on an operational level in real estate devel-opment projects. Therefore, actors in the real estate sector do not know how to implement PSSs in real estate development projects. The central role of the service provider (i.e. former real estate developer) is hereby seen as important since this actor that would manage the overall performance of a servitized building and steers the development of it. The objective of this research is therefore to (1) conceptual-ize the functioning of circular Product-Service-Systems on an operational level and (2) develop conceptu-al working models that could be used by real estate developers to perform the role of the circular ser-vice provider.
Research question: How could a circular service provider interact with service suppliers and customers in order to implement circular Product-Service-Systems in real estate development projects?
Methodology: The research process consisted of fours steps. The first step relates to the development of concepts. An explorative literature review and several explorative interviews were conducted within this step. The second step comprehended a systematic literature review in order to gain insight in exist-ing theories. The third steps related to practices, whereby three case studies were conducted and ana-lysed. The fourth step related to the synthesis, hereby theories were built around four business tactics, which in the end led to the generation of a proposition in the form of empirical lessons.
Findings: As Product-Service-Systems aim at meeting end-users needs, service value is created over time. This implies that a mindset change within the real estate sector is needed in order to servitise real estate development projects. Organizations in the real estate sector should hereby aim at long-term value creation for customers and collaborate with partners. Actors within the supply chain should opt for equal partnership and form networks of organizations around a specific goal.
Conclusion: The role of the service provider is hereby to find the right partnerships and ensure incen-tives will be directed towards thig long-term service delivery. The form and content of these partner-ships is essential in order to implement Product-Service-Systems successfully. The service provider could establish this by using the developed 'Interaction Model'.
Limitations: Three case studies from one real estate development company have been analysed as not many servitized project are available. The validity of findings is increased by using different sources of data and research techniques (triangulation).