Exploring the linkages between servitization and circular economy: Remanufacturing as a product or as a service?

Abstract

Servitization is increasingly recognised as a key strategy for addressing the challenges of Remanufacturing, yet its role remains underexplored. This study responds to the growing call for research on the conditions under which Remanufacturing should be offered as a service- or as a product-centric logic, and on the associated economic, environmental and social impacts. Through a multiple case study of five multinational manufacturing firms operating in B2B markets, this research uncovers how different Remanufacturing configurations support sustainable business development. The findings show that Remanufacturing-as-a-service (RaaS) can mitigate barriers, such as demand unpredictability and market cannibalisation, by embedding Remanufacturing into advanced service offerings, thus enhancing operational efficiency and long-term customer relationships. Conversely, Remanufacturing-as-a-product (RaaP) emerges as a viable strategy for market expansion in developing economies, enabling access to affordable, high-quality and resource-efficient products. However, each approach entails distinct requirements in terms of service capabilities, customer engagement and reverse logistics. On the basis of these findings, this paper develops a decision-making model that clarifies when and how firms should offer RaaP rather than RaaS.