Structuring for Sustainability
Exploring Stakeholder Dynamics, Revenue Models, and Barriers in Product-Service Systems for the Infrastructure Sector
S.E. Denneboom (TU Delft - Civil Engineering & Geosciences)
Daan Schraven – Graduation committee member (TU Delft - Real Estate Management)
L.P.I.M. Hombergen – Graduation committee member (TU Delft - Integral Design & Management)
K. Ullah – Graduation committee member (TU Delft - Real Estate Management)
Philine Goldbohm – Mentor (Dutch Process Innovators)
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Abstract
This thesis explores how Product-Service Systems (PSS) can contribute to the sustainability transition in the Dutch construction sector, with a specific focus on revenue models in infrastructure projects. PSS offer an alternative to traditional asset-based contracting by focusing on service delivery, risk-sharing, and long-term value creation. However, their implementation in infrastructure remains limited and complex due to fragmented responsibilities, conventional contracting habits, and unclear financial incentives.
Through a multi-method qualitative approach, this research analyses eight pilot projects from the Circular Road program. The Functional Hierarchy Model was used to assess the structure of each project and identify the theoretically appropriate revenue model. These insights were triangulated with stakeholder interviews and a workshop to explore collaboration, sustainability integration, and practical challenges.
Findings reveal that sustainability outcomes were not directly linked to the specific type of revenue model used. Instead, early contractor involvement and greater design freedom emerged as stronger enablers of sustainability integration. Although the Functional Hierarchy Model provided a useful theoretical framework, it was found to be too complex for direct application without simplification in practice.
The study also uncovered a wide range of implementation barriers, many of which, particularly financial and contextual ones, are unique to the infrastructure sector. These include double maintenance systems, difficulties in calculating residual value, and the unclear added value of PSS on smaller scales. This calls for a more context-sensitive approach to barrier mitigation, contract structuring, and revenue model design.
This thesis contributes to the academic discourse on PSS by linking theoretical models with real-world application and identifying how project dynamics influence sustainable outcomes. The results offer guidance for infrastructure practitioners and policymakers seeking to use PSS as an instrument for sustainable innovation. Recommendations include adapting theoretical tools like the Functional Hierarchy Model for practice, designing financial mechanisms as levers for sustainability, and scaling research beyond collaborative pilot environments.