Product-service system toward circularity: hierarchical framework in Indonesia’s home appliance manufacturing industry under uncertainties

This study contributes to developing the hierarchical framework of product-service system toward circularity under uncertainties of the home appliance industry in Indonesia. Product-service system allows for early identification of maintenance, customers’ personalization service, optimal allocation of resources, and environmental impact reduction, yet lacks circular principles to achieve zero-waste policy. Prior studies lack to generate a valid attribute set of product-service toward circularity based on qualitative information, construct a hierarchical framework with causal interrelationships among the attributes, and identify the valid attributes for improvement the system in the industry. This study applies fuzzy Delphi method to validate these attributes in the home appliance industry and adopts best–worst method to identify the effective and ineffective attributes while checking for their consistency. These valid attributes are used to construct a hierarchical framework and build a graphical depiction under causal interrelationships. The study’s implication to the theory is focused on the improvement of circular design, digital platform operation and stakeholders’ pressures as the priority aspects to optimize the effectiveness of product-service systems toward circularity. Meanwhile, the practical implication is centered on the improvement of customer belief, product traceability in supply network, modular design with recyclable material adoption, cloud service allocation and sharing, and customer requirements criteria for implementing circularity in the product-service system.