Journal of Cleaner Production

Journal of Cleaner Production 294 (2021) 126188
Contents lists available at ScienceDirect
Journal of Cleaner Production

journal homepage: www.elsevier.com/locate/jclepro
Sustainable product-service system hierarchical framework under

uncertainties: The pharmaceutical industry in Ecuador
Yeneneh Tamirat Negash a, b, Liria Salome Calahorrano Sarmiento b,
Ming-Lang Tseng b, c, d, *, Korbkul Jantarakolica e, Kimhua Tan f
a
Department of Business Administration, Asia University, Taichung, Taiwan
b
Institute of Innovation and Circular Economy, Asia University, Taichung, Taiwan
c
Department of Medical Research, China Medical University Hospital, China Medical University, Taichung, Taiwan
d
Faculty of Economic and Management, University Kebangsaan Malaysia, Malaysia
e
College of Innovation Management, Rajamangala University of Technology Rattanakosin, Bangkok, Thailand
f
School of Business, University of Nottingham, United Kingdom
a r t i c l e i n f o a b s t r a c t
Article history: This study identifies a valid set of attributes of a sustainable product-service system (SPPS) consisting of
Received 4 November 2020 customer empathy, innovation activities, cultural capability, partnerships, product-service assurance, and
Received in revised form corporate social responsibility under uncertainties. The Ecuadorian pharmaceutical industry is facing
22 December 2020
sustainability challenges during a pandemic crisis. Prior studies lack an understanding of the attributes’
Accepted 27 January 2021
Available online 9 February 2021
hierarchical relationship, and this lack affects SPPS implementation and value creation. This study
gathers a set of attributes, including four perspectives and 55 criteria, from the pharmaceutical industry.
âs de
Handling Editor: Cecilia Maria Villas Bo This study applies the fuzzy Delphi method to screen the nonessential attributes in qualitative infor-
Almeida mation, fuzzy interpretive structural modeling to develop a hierarchical framework and the best-worst
method to determine the criteria weights in the hierarchical framework. This study provides a hierar-
Keywords: chical framework consisting of 6 levels and 30 criteria for the assessment of an SPPS in the pharma-
Sustainable product-service systems ceutical industry. The findings reveal that customer empathy, innovation and stakeholder interaction are
Product-service value the top aspects of the hierarchy affecting its implementation. In practice, research and development
Fuzzy delphi method
expertise, process innovation, product innovation, reliability and productivity can help decision-makers
Fuzzy interpretive structural modeling
enhance efficiency. The proposed framework could constitute a guideline for firms to facilitate
Best-worst method
implementation.
© 2021 Elsevier Ltd. All rights reserved.
1. Introduction to regulatory hurdles, increasing R&D costs, and extended time to

market new drugs remain (DiMasi et al., 2018; Bignami and
Pharmaceutical firms in Ecuador face sustainability challenges Mattsson, 2019). In addition, Yu et al. (2020) discussed the
such as climate change, drug pollution, inequality access, and growing concern regarding drug manufacturers’ limitations in
medicine availability (Belkhir and Elmeligi, 2019; Milanesi et al., meeting the demand for national health systems and retailers
2020). The pharmaceutical industry is responsible for drug while addressing sustainability, especially during a crisis. Crises
research, drug manufacturing, and medicine distribution to treat such as COVID-19 disrupt supply chains due to loss of labor, infra-
different diseases. Although the pharmaceutical industry contrib- structure problems, and transport restrictions, creating shortages
utes to people’s well-being and the global economy, issues related of raw materials and thus reducing firm productivity (Rapaccini
et al., 2020; Yu and Aviso, 2020; Sarkis et al., 2020). During a
crisis, even firms with access to raw materials and labor might not
* Corresponding author. Institute of Innovation and Circular Economy, Asia Uni- have the flexibility to adapt to the changing environment and social
versity, Taiwan. requirements (Lee et al., 2015; Ding, 2018). Thus, innovation is
E-mail addresses: [email protected], [email protected] (Y.T. Negash), liria. needed to address the pharmaceutical industry’s challenges and
[email protected] (L.S. Calahorrano Sarmiento), [email protected], achieve sustainability (Li and Hamblin, 2016; Chesbrough, 2020).
[email protected] (M.-L. Tseng), [email protected] (K. Jantarakolica),
Innovative solutions are required to address complex challenges
[email protected] (K. Tan).
https://doi.org/10.1016/j.jclepro.2021.126188
0959-6526/© 2021 Elsevier Ltd. All rights reserved.
Y.T. Negash, L.S. Calahorrano Sarmiento, M.-L. Tseng et al. Journal of Cleaner Production 294 (2021) 126188
and uncertainties, such as sustainable technologies, policies and service value creation; customers relate such value to quality
new business models (Fain et al., 2018; Milanesi et al., 2020). assessment, product-service assurance, function, and cost (Xing
Indeed, sustainable development demands that firms rethink and et al., 2013; Chou et al., 2015; Tseng et al., 2018). Smart technolo-
transform their existing business models to meet economic, envi- gies, such as digital twin and blockchain integration, enhance the
ronmental and social challenges (Roome and Louche, 2016; Shakeel value creation of SPSS by providing informed services and contin-
et al., 2020). Pharmaceutical firms have adopted sustainable busi- uous improvement in product development, manufacturing and
ness models without sufficiently understanding how business transparency of product lifecycle management (Leng et al., 2019,
model innovation operates in the supply chain and affects con- 2020). Feng and Ma (2020) argued that stakeholders’ interactions
sumption (Ding, 2018; Bocken and Geradts, 2020). The industry influence the offering and delivery of SPSS value, especially in the
requirements for business model innovation have led to consumer- value creation process through collaboration and partnership
centric business models, including product-service systems (PSS) in among customers, suppliers, and other stakeholders. Retamal
the sustainable business model. PSS deliver a bundle of products (2017) pointed out that sustainable production and consumption
and services to satisfy customer needs and include the adoption of are essential for SPSS, highlighting the use of collaborative con-
servitization in manufacturing firms, including additional services, sumption to reduce goods production, achieve environmental
such as maintenance, upgrades, outsourcing and manufacturing benefits and enhance social capability. The integration of product-
contracts (Mont, 2002; DiMasi et al., 2018). PSS in the pharma- service value, stakeholder interaction, sustainable production, and
ceutical industry include training regarding the product, facilitating sustainable consumption perspectives provides a holistic approach
accessibility to treatments, and monitoring and optimizing phar- to and understanding of the hierarchical framework. This under-
maceutical care processes (Wenzel et al., 2014; Nematollahi et al., standing enables the implementation to be enhanced and sus-
2018). Hence, PSS need to be studied in relation to the pandemic tainability to be achieved even in a crisis context.
crisis, especially in the pharmaceutical industry as this industry Sustainable product-service value creation requires a holistic
faces this dilemma. approach to investigate its impact on the SPSS implementation
PSS are a business model that develops from sustainability (Annarelli et al., 2016; Kristensen and Remmen, 2019). Annarelli
concerns; however, their sustainable performance is limited to a et al. (2020) emphasized that a hierarchical framework among
particular business (Tukker 2015; Schallehn et al., 2019). The PSS the attributes of different perspectives is critical for understanding
solution is sustainable product-service systems (SPSS), which and implementing SPSS and obtaining the resulting competitive
improve product-service value through customer empathy, inno- advantage. A list of attributes is proposed based on the product-
vation activities, cultural capability, partnerships, product-service service value, stakeholder interaction, sustainable consumption,
assurance and corporate social responsibility (Vezzoli et al., 2015; and production perspectives to address SPSS value creation. Prior
Retamal, 2017). SPSS create additional value for customers by studies have neglected to perform validation, and the attributes are
increasing their involvement in offerings; the advantages are qualitative information and uncertainty preferences (Tseng et al.,
interactive stakeholder relations, improved competitiveness, 2019; Carnevale and Hatak, 2020). This study applies fuzzy set
differentiating offerings from those of competitors and improving theory to deal with uncertainties and the fuzzy Delphi method
customer loyalty (Hakanen et al., 2017; Fargnoli et al., 2018; Zeeuw (FDM) to screen out less essential attributes and generate valid
van der Laan and Aurisicchio, 2020). Manufacturing firms have attributes (Bouzon et al., 2016; Tseng et al., 2018). It also applies
changed from product-centric to integrated services to distinguish fuzzy interpretive structural modeling (FISM) to create a hierar-
themselves in competitive and strictly regulated markets (Ayala chical framework among the attributes (Li et al., 2019a; Han et al.,
et al., 2017; Chen et al., 2020; Feng and Ma, 2020). In Ecuador, 2020). Furthermore, the best-worst method (BWM) is incorporated
SPSS should be installed and their structural and hierarchical to determine the weights of the hierarchical framework criteria
implementation understood. (Rezaei, 2015, 2016). The objectives of this study are as follows:
This study proposes SPSS to support the pharmaceutical in-
dustry during a crisis and investigates the SPSS criteria in the C To provide a valid set of SPSS attributes in the form of qual-
Ecuador setting. This study contributes to building a hierarchical itative information
framework from the product-service value, stakeholder, sustain- C To develop a hierarchical framework under uncertainties
able production and sustainable consumption perspectives (Tseng C To determine the SPSS criteria for the Ecuadorian pharma-
et al., 2018; Shakeel et al., 2020; Milanesi et al., 2020). Tseng et al. ceutical industry during a crisis
(2019) argued that misunderstanding and ignorance about SPSS
create economic, social and environmental risks and confuse cus- This study contributes to the literature by (1) composing a list of
tomers about benefits and value delivery. Implementing different essential SPSS attributes based on product-service value, stake-
views provides a holistic approach to analyze SPSS effects on firms; holder, and sustainable production and consumption perspectives
additionally, the sustainable value proposition needs to be and assessed by experts and (2) proposing a hierarchical frame-
enhanced, and a holistic approach is required to investigate its work redefining these aspects. Finally, this study contributes to
impact on implementation (Annarelli et al., 2016, 2020; Kristensen industry by (3) presenting a framework for SPSS implementation
and Remmen, 2019). Emphasizing different perspectives in the enhancement. This study is organized as follows. Section 2 reviews
SPSS investigation enables an understanding of SPSS implementa- and discusses the literature. The industry background and the
tion and competitive advantage. methodologies adopted in the study are discussed in section 3.
Previous studies have highlighted the importance of the value Section 4 shows the results. Section 5 discusses the results and
creation process in SPSS (Chou et al., 2015; Tseng et al., 2019). SPSS presents some theoretical and managerial implications. Finally, the
offer product-service value and sustainability value; however, conclusions, limitations and suggestions for future studies are
sustainability must be considered in both the consumption and provided in section 6.
production processes. Bocken et al. (2016) argued that the product-
service value is complex and subject to uncertainties, requiring an 2. Literature review
understanding of other perspectives, such as stakeholder interac-
tion, production, and consumption. Stakeholder interactions, This section provides a literature review concerning PSS, SPSS
innovation activities, and partnerships contribute to product- and the proposed perspectives.
2
2.1. Product-service system perspectives are required to understand SPSS complexity. SPSS are
customer-oriented and integrate services; the relationships with
Mont (2002) defined PSS as “a system of products, services, internal and external stakeholders are relevant to value creation.
supporting networks, and infrastructure that is designed to be Value creation requires several stakeholders; internal and
competitive, satisfy customer needs, and have a lower environ- external stakeholders interact, shaping the value offering (Sousa-
mental impact than a traditional business.” Tukker (2004) classified Zomer and Cauchick, 2018; Ayala et al., 2017; Chang et al., 2019).
PSS as product-oriented, use-oriented, and results-oriented. Prod- To achieve the proposed offering, the product-service value is based
uct-oriented refers to a focus on product delivery and added ser- on customer satisfaction, the product-service quality, firm capa-
vices such as repair, maintenance, and recycling offerings while bilities, and innovation linked to new value offerings with addi-
maintaining customer ownership. Use-oriented means function- tional intangible value (Chou et al., 2015; Calabrese et al., 2018).
ality or use, such as car, bike, and laundry sharing schemes, while SPSS offer product-service value and sustainability value; however,
maintaining provider ownership. Results-oriented refers to results firms must consider sustainability in both consumption and pro-
delivery, for instance, laundered clothes offerings, outsourcing and duction operations. Sustainable consumption and production
manufacturing contracts; in this scenario, consumers are not belong to sustainable value based on economic drivers, social re-
involved in the ownership or use of the product (Annarelli et al., sponsibility and environmental care for customers and firms in
2020). Product orientation integrates services, increasing product production and service delivery (Gardas et al., 2019; Tseng et al.,
life and reducing the environmental impact of solid waste. Use and 2019; Annarelli et al., 2020). Finally, sustainable consumption af-
results-oriented offerings enable the efficient use of resources, fects value delivery and mitigates SPSS sustainable value, rendering
infrastructure, and equipment while simultaneously reducing cost it ineffective and eliminating its benefits (Retamal, 2017; Song,
and increasing the assets’ useful life (de Jesus Pacheco et al., 2019; 2018; Tseng et al., 2019). The perspectives proposed for the anal-
Annarelli et al., 2020). Bocken (2016) asserted that the service- ysis of SPSS are product-service value, stakeholders, sustainable
centric approach improves productivity and increases stake- consumption and sustainable production.
holders’ interactions, reframing society’s roles and the PSS envi-
ronment. Hakanen et al. (2017) noted that service integration 2.2.1. Product-service value perspective
promotes innovation and competitiveness, as the shift from prod- SPSS complexity requires a multilevel assessment of value of-
uct to service requires a different approach to traditional offerings, ferings, customer empathy, innovation activities, design, and
fostering new interactions with consumers and maximizing manufacturing, demanding the right tools for assessment and
resource use. development (Tseng et al., 2018; Chen et al., 2019; Kristensen and
PSS benefits include profit increase due to differentiation and Remmen, 2019). Product-service value is dynamic and changing,
innovation, portfolio expansion due to service-related offerings, particularly in the way it is captured and delivered; for example,
positive impact on environmental performance due to product life- servitization is associated with different schemes, such as chemical
cycle extension, and social benefits through increased productivity management services, car/bike-sharing systems, laundry services
(Zhang et al., 2019; Fain et al., 2018). Yang et al. (2017) argued that and personalized medicine (Song and Sakao, 2016; Yang et al., 2017;
the value proposition entails a complex interaction between the Ding et al., 2018; Carnevale and Hatak, 2020). Vezzoli et al. (2015)
environment, society, internal stakeholders, and customers, as it pointed out that product and service offerings require different
requires a new form of organization that challenges PSS imple- partnership and stakeholder interactions to acquire new service
mentation. An example of the complex interaction between PSS capabilities that are crucial to the correct delivery of a product-
environmental value and consumption patterns is car-sharing service bundle. Bocken et al. (2016) stated that value delivery is
schemes. The aim is to use transportation resources efficiently complicated and affected by uncertainties, introducing new chal-
and reduce gas emissions; however, consumers are willing to travel lenges to the reframing of operational and strategic partnerships,
more often due to the reduced costs compared to owning a vehicle, quality and life-cycle considerations, and stakeholder interactions.
increasing gas emissions, and nullifying the environmental benefits Customers identify and associate the value through the quality
(Mont, 2002; Kjaer et al., 2019). Hakanen et al. (2017) found that the assessment and product-service assurance, considering the func-
servitization effect on intermediaries is mixed; some strengthen tional and monetary attributes. However, the product-service value
their positions and develop new capabilities, while others lose their in SPSS is complicated compared to that in traditional offerings,
current status. PSS positive outcomes and pitfalls are mixed due to requiring changes in stakeholders’ cultural capabilities (Xing et al.,
the “service paradox,” when a high level of service integration is 2013; Chou el., 2015). Furthermore, innovation activities inside the
expected to increase revenue but in fact decreases revenue firm and stakeholder relations are essential to achieve higher profit,
(Kowalkowski et al., 2017; Li et al., 2019b). To overcome PSS chal- especially as the boundary between services and products becomes
lenges, SPSS are intended to improve consumption and production blurred (Vezzoli et al., 2015).
patterns and strengthen stakeholder relations while offering value
aligned with sustainable goals. 2.2.2. Stakeholder perspective
Stakeholders act in the supply chain, providing value and
2.2. Sustainable product-service systems exchanging capabilities and resources, thus creating complex in-
teractions among themselves and requiring strategic partnerships
SPSS require a change in stakeholder interactions and mindset (Xing et al., 2013; Li et al., 2019b). SPSS require active stakeholders
to encourage sustainable consumption and production (Adrodegari instead of audiences; however, only a few approaches consider
et al., 2017). SPSS combine products and services to satisfy stakeholder value cocreation (Yang and Evans, 2019; Fernandes
customer needs by replacing tangible values with intangible values, et al., 2020). Stakeholders are critical to the development of ser-
such as risk reduction, flexibility and sustainability. Mis- vice provision offerings, and stakeholders include internal partici-
understandings about SPSS create economic, social and environ- pants, such as employees and managers, and external participants,
mental risks and confuse customers about benefits and value such as customers, suppliers, society and the planet (Yang and
delivery (Tseng et al., 2019). De Jesus Pacheco et al. (2019) argued Evans, 2017; Kristesen and Remmen, 2019). Lindahl et al. (2014)
that firms struggle to quantify cost savings, and uncertainties in noted that stakeholder closeness from the design stage to after
cash flow discourage financial support. Consequently, different the end of the product life and flexibility in production and service
3
provision enable SPSS. Tseng et al. (2018) stated that collaborative qualitative methods, including the use of interviews and document
advantage, innovation activities and operational capabilities are analysis. Song and Sakao (2017) collected data by interviewing
essential to SPSS. De Jesus Pacheco et al. (2019) argued that pro- academic researchers and industrial experts to identify and cluster
active behaviors in creating networks are more useful for value components into modules to support SPSS customization and
creation than public policies fostering partnerships. Feng and Ma resolve design conflicts. Kristensen and Remmen (2019) inter-
(2020) also discussed the need for network capacity to improve viewed suppliers and customers and analyzed documents to un-
the relationship between external stakeholders and firms. derstand the sustainable value proposition and develop a
Improved relationships aid in developing new products and ser- conceptual framework to explore the business model value. Akbar
vices and efficiently allocating resources. Strategic interactions and and Hoffmann (2019) interviewed managers using the asynchro-
stakeholders are critical for SPSS by providing resources, capabil- nous online interviewing method to evaluate the value creation
ities for creating value and a competitive advantage. process of offerings that provide access instead of ownership.
Schallehn et al. (2019) collected and analyzed data from prior
2.2.3. Sustainable production perspective studies to point out critical criteria affecting the customer value
Sustainable production entails a life-cycle assessment from creation experience. Yang and Evans (2019) used focus groups and
development to manufacturing, distribution and final product semistructured interviews to understand sustainability value cre-
disposal, focusing on reducing materials and improving operational ation in product-service delivery and proposed a model to explain
efficiency, extending product life and intensifying resource use value creation for each SPSS archetype.
(Fargnoli et al., 2018; Yang and Evans, 2019). Previous studies have A wide variety of quantitative methods have also been applied.
mentioned difficulties in implementing SPSS, such as organiza- For instance, Shi et al. (2016) used the FDM to screen out the criteria
tional culture, social and environmental balance and market de- and analytical network process to arrange the criteria and verify the
mand recognition (Vezzoli et al., 2015; Kjaer et al., 2016; Adrodegari respondents’ answers to improve sustainable corporate develop-
et al., 2017). De Jesus Pacheco et al. (2019) determined a set of ment. Tseng et al. (2016) employed the FDM to filter criteria and an
barriers, including sustainability barriers such as awareness, risk analytical network process to deal with linguistic preferences and
analysis and sustainability indicators, emphasizing that financial their relation to the success of firms’ green supply-chain capabil-
vulnerability increases due to the shift from product to service and ities. Song and Sakao (2017) implemented the house of quality
value-oriented propositions. Sustainable production is influenced analysis to identify conflicts, followed by a TRIZ matrix and 40 in-
by green product design, process innovations, regulations and firm ventive principles to solve the customization problem in SPSS.
culture (Li and Hamblin, 2016; Tseng et al., 2019). Sustainable Fargnoli et al. (2018) employed quality function deployment, life-
production is based on resource productivity, closed-loop consid- cycle assessment and life-cycle costing to analyze customer prior-
erations, end-of-life product management, competitiveness, ities and stakeholder needs and identify criteria for implementing
collaboration between stakeholders and employees and customer SPSS in regulated markets. Tseng et al. (2019) used the FDM to reach
loyalty (Fain et al., 2018; Tseng et al., 2019). Fernandes et al. (2020) a general agreement among the respondents and identify criteria,
highlighted the need to understand different perspectives that in- followed by a fuzzy importance analysis to rank product or service
fluence SPSS and design that considers environmental, economic criteria according to how their importance and quality affect ser-
and social concerns to improve sustainability. vice innovation in SPSS.
Prior studies have neglected to validate SPSS attributes in terms
2.2.4. Sustainable consumption perspective of qualitative information (Tseng et al., 2019; Carnevale and Hatak,
In addition to changes in production patterns, consumption 2020). Furthermore, there is a need for a hierarchical model to
pattern changes are also linked to SPSS (Retamal, 2017). Even allow a better understanding of SPSS and ease their implementa-
though a decrease in consumption is an alternative means of tion. ISM provides a graphical representation to visualize the
achieving sustainability, consumers tend to be materialistic and criteria order in complex relationships (Li et al., 2019a; Han et al.,
overconsume, as they are unwilling to sacrifice product ownership 2020). However, prior studies have not classified criteria in a
for environmental benefits (Fain et al., 2018; Kjaer et al., 2019). SPSS multilevel hierarchical framework to aid in decision-making. The
extend product life and reduce consumption and waste production respondents’ answers were analyzed under fuzzy set theory based
while delivering functionality or results to customers, reducing on linguistic preference. Fuzzy techniques formed the basis for
purchase and ownership (Sousa-Zomer and Cauchick, 2018; Zeeuw representing uncertainty preferences, provided a foundation for
van der Laan and Aurisicchio, 2020). Consumer behavior can impact human reasoning, and offered an effective means of describing
such an offering due to complexity and uncertainty regarding price, complex or ill-defined systems. Fuzzy logic is widely used in
psychological drivers and social norms as ownership is redefined, different areas; for instance, Bouzon et al. (2016) provided a reverse
leading to customer rejection or acceptance (Retamal, 2017; Tseng logistics implementation framework. Sahu and Patel (2017) inves-
2018). SPSS allow easy access to products at low prices, resulting in tigated applications in heat transfer and energy storage systems.
a rebound effect due to an increase in consumption; therefore, Teodorescu et al. (2017) presented an application of fuzzy methods
resource efficiency must be considered since the design is impor- in medicine and biology, and Tseng et al. (2019) proposed SPSS for
tant in achieving sustainable consumption (Kjaer et al., 2019; White the construction industry. The FDM is used to screen out less
et al., 2019; Fernandes et al., 2020). Tseng et al. (2019) argued that essential criteria according to respondents’ general agreement.
responsible social decisions are essential to sustainable consump- FISM is employed to arrange the essential criteria in a hierarchical
tion and reduce the rebound effect. Furthermore, de Jesus Pacheco framework, providing a graphical representation that aids in SPSS
et al. (2019) referred to the need for changes in consumer behavior, implementation. Finally, the BWM is used to rank the criteria ac-
organization, and knowledge to foster green innovations and cording to importance. Fig. 1 shows the proposed research frame-
sustainability. work based on the pharmaceutical industry’s products and
services, FDM, ISM and BWM.
2.3. Proposed method
2.4. Proposed pharmaceutical industry measures
Different types of methodologies have been used to understand,
assess and improve SPSS implementation. Prior studies adopted The pharmaceutical industry’s current business model faces
4
Fig. 1. Study framework based on the SPSS pharmaceutical industry measures, FDM, ISM and BWM.
significant challenges, including flourishing generic drugs, expiring 2018). SPSS reduce cost, time, and environmental impact, pro-
patents, a lack of product innovations, and higher cost margins mote social responsibility, and integrate external capabilities into
(DiMasi et al., 2018; Yu et al., 2020). Future pharmaceutical firms manufacturing to develop a sustainable pharmaceutical supply
demand more specialized business models concentrating on core chain (Zeeuw van der Laan and Aurisicchio, 2020; Shakeel et al.,
capabilities to sustain long-term growth (Li and Hamblin, 2016; 2020). This study proposed an initial set of 55 criteria affecting
Song, 2018; Bignami and Mattsson, 2019). The industry’s future SPSS development in the pharmaceutical industry (Appendix 1).
seeks to develop services that support patients and ensure the The criteria are organized into product-service value, stakeholder
impact of products. Accessibility, pharma care and monitoring are interaction, sustainable production and sustainable consumption
among the most common services; however, crisis requirements perspectives and presented in Appendix 1; this section highlights
demand new services, such as personalization based on patient- 30 valid criteria for the evaluation (Table 1).
centric information (Wenzel et al., 2014; Ding et al., 2018; The product-service value perspective refers to the benefits and
Nematollahi et al., 2018). SPSS in the pharmaceutical industry satisfaction that the customer receives due to monetary exchange.
provide operation servitization, such as pharma care, personalized The customer identifies the product-service value through quality
medication and manufacturing contracts, while achieving envi- evaluation, such as manufacturing quality control (C1), referring to
ronmental, economic and social benefits (Ding, 2018; Tseng et al., material acquisition, production, and distribution control to meet
5
Table 1
SPSS proposed measures.
Perspectives Criteria Description References
P1 Product-Service C1 Manufacturing quality Good manufacturing certification or ISO 9000s series and quality control during Cepeda (2007); Haleem et al.
value control the manufacturing process (2015);
C2 Tangibles Image of physical facilities and employee appearance Lee et al. (2015);
C3 Reliability Performing services right, maintaining error-free records Chou et al. (2015); Calebrese et al.
C4 Responsiveness Quick response, and always ready to solve problems (2018);
C5 Product-service Knowledgeable and professional employees Tseng et al. (2018);
assurance Ding (2018);
C6 Customer empathy Understanding customers’ needs and interests Song (2018); Tseng et al. (2019);
C7 Service innovation Introduction of new services or improvements of current services
C8 Product innovation New products or improvement
C9 Process innovation Changes “behind scenes” to enhancing productivity and efficiency
C10 Management New methods to organization management, external relationships, and internal
innovation collaboration
C11 Regulatory capability Proprietorship of legal entities like intellectual property rights, contracts and
trade secrets
C12 Positional capability Consequence of past actions that produced a certain reputation with customers
C13 Cultural capability Habits, convictions and values of the individuals in the firm
P2 Stakeholders C14 Stakeholders Efforts to maintain a long-term relationship Tseng et al. (2019);
commitment Andersson et al. (2020)
C15 Stakeholders Activities to improve stakeholder’s communication and decision making Chou et al. (2015); Sausa-Zomer
participation et al. (2016);
C16 Knowledge Learn of the different stakeholders capabilities Chang et al. (2017);
development Paslauski et al. (2017);
C17 Knowledge exchange Sharing, access, understanding and use of knowledge for decision making Song (2018)
C18 Employee equity Anti-discrimination and equal opportunity
C19 Employee justice Legitimacy and reasonableness of working content
C20 Safety & health Feeling safety and health at the working content and workplace
C21 Welfare & care Employee benefits and assistance
P3 Sustainable C22 Eco-efficiency Efficient use of resources to reduce environmental impact Li and Hamblin (2016);
production C23 Eco-innovation Innovations aim to reduce the environmental impact Song (2018);
C24 Environmental- Industrial government regulations and policies Ding (2018); Gardas et al. (2019);
friendly culture Belkhir and Elmeligi (2019); Tseng
C25 Cost reduction Distribution and production cost reduction et al. (2019);
C26 Agility and flexibility Ability to rapidly change strategies to adapt new environments and Annarelli et al. (2020)
requirements
C27 Un-replicability Copy protection for resources and processes
C28 Productivity Fast implementation of new projects and efficiency in production
P4 Sustainable C29 Cost and time Cost and time reduction compared to owning the equipment and facilities Retamal (2017); Song (2018); Tseng
consumption C30 R&D expertise Research and development expertise, knowledge and ability to execute new et al. (2019)
projects and innovate
customer specifications (Xing et al., 2013; Haleem et al., 2015; Song, Pacheco et al., 2019). Hence, it is necessary to consider these
2018). Service quality criteria such as tangibles (C2), facilities im- criteria for SPSS value evaluation.
age, materials, cleanliness, and employee appearance affect the The stakeholder perspective considers the criteria involved in
customer experience. Reliability (C3) assures service correctness stakeholder relationships. Stakeholder commitment (C14) con-
and maintains a record free of errors in service activities. Respon- serves and preserves stakeholder relationships, and stakeholder
siveness (C4) satisfies customer requirements and promptly solves participation (C15) maintains and improves communication and
problems. Product-service assurance (C5) guarantees personnel understanding of stakeholder requirements, aids in the decision-
knowledge of and actions for product and service provision. making process, and reallocates resources as needed to orches-
Customer empathy (C6) denotes a knowledge of customer re- trate SPSS offerings (Song, 2018; Yang and Evans, 2019). Knowledge
quirements to understand the user’s experience, situation, and development (C16) is the awareness and understanding of other
emotion (Chou et al., 2015; Tseng et al., 2019). stakeholders’ capabilities, fomenting stakeholder participation and
In addition to quality, innovation activities are essential for commitment. Knowledge exchange (C17) refers to sharing and
value delivery. For instance, service innovation (C7) and product using information and data in the decision-making process, thus
innovation (C8) in different situations in the form of new services improving stakeholder interactions; however, it requires changes
and products or improvement of ongoing services and products in firm processes due to different actors’ management systems,
address technical, economic, service, and social benefits related to privacy, and intellectual property concerns (Raddats et al., 2017;
customer desire. Process innovation (C9) improves efficiency and Bignami and Mattsson, 2019). Internal stakeholders and employees
productivity backstage by using new production methods and re- are critical for service offerings, affecting SPSS. Employee
sources. Management innovation (C10) introduces new manage- commitment is evaluated through employee equity (C18), antidis-
ment practices and internal organization (Tseng et al., 2018; Fain crimination due to gender, race, or age and equal opportunity to
et al., 2018). Finally, SPSS operational capabilities, such as regula- execute operational activities. Employee justice (C19) refers to legal
tory capability (C11), contribute to value offerings through the and adequate working conditions and time and appropriate work
ownership of intellectual property and contracts. Positional capa- content. Safety and health (C20) conditions are related to safety and
bility (C12) is the effect of previous actions that improve a com- health in the work environment and activities. Finally, welfare and
pany’s reputation with its clients and cultural capability (C13) by care (C21) refer to employee benefits such as subsidies, insurance,
incorporating organizational habits, attitudes and values (de Jesus training, guidance, and consultation (Sousa-Zomer and Cauchick,
6
2018; Chang et al., 2019; Tseng et al., 2019). The criteria used to activity. In this context, the Ecuadorian pharmaceutical industry
evaluate internal and external stakeholder relationships contribute has been affected by a shortage of active ingredients and chemical
to the success of SPSS. precursors and faces production and demand changes. Research
Sustainable production and consumption perspectives refer to projects unrelated to COVID-19 have ceased due to changes in
environmental consciousness and economic benefits for firms and priorities and supply. The pharmaceutical supply chain’s pandemic
consumers. Sustainable production emphasizes eco-efficiency implications have been highlighted, emphasizing equitability and
(C22), efficient use of resources considering the ecological impact sustainability challenges that arise while meeting the demand.
and eco-innovations (C23) aims to reduce the environmental SPSS stabilize firms and improve resilience compared to traditional
footprint by contemplating the product life cycle, manufacturing business practices, thereby increasing agility, elasticity and
process, distribution, and marketing. An environmentally friendly collaboration to provide a sustainable solution for environmental
culture (C24) in a firm supports pollution prevention and mitigates and social changes during a crisis. In the post-COVID-19 context,
the environmental impact due to aligning strategic operations with unemployment and customer preferences need to be considered, as
eco-friendly goals (Li and Hamblin, 2016; Kuo and Smith, 2018; the cost is a determined driver of SPSS consumption in addition to
Sousa-Zomer and Cauchick, 2018). Economic benefits are related to stakeholder interactions, collaboration and innovation activities,
cost reduction (C25) as well as agility and flexibility (C26) to change which are critical for achieving sustainability and providing value
and adapt to different environments and requirements (Zhang to customers (Song et al., 2018; Tseng et al., 2018; Gardas et al.,
et al., 2019; Ding, 2018; Gardas et al., 2019). A lack of replicability 2019). Employees’ psychological well-being is affected by changes
(C27) protects processes and tangible and intangible resources in the working environment, remote working, the economic crisis
from being easily copied by rivals. Productivity (C28) refers to the and health and safety issues, affecting SPSS implementation.
rapid implementation and execution of projects, gaining market Pharmaceutical firms routinely provide personal protective equip-
share and increasing competitiveness (Song et al., 2018; Annarelli ment to plant workers, as required by the good manufacturing
et al., 2020). Sustainable consumption is driven by economic practices certification; however, there is a need to address em-
criteria, such as cost and time reduction (C29), due to low prices ployees’ challenges differently, as employees are key to service
and fast production compared with equipment and facility delivery and production in SPSS (Chou et al., 2015; Tseng et al.,
ownership. R&D expertise (C30) provides the capacity to execute 2018). FISM provided a hierarchical framework for assessing in-
new projects, external knowledge, and product development dustrial experts’ linguistic preferences based on previous criteria
enhancement by an external provider (Song, 2018). Consequently, and contexts; 22 respondents from the Ecuador pharmaceutical
the proposed criteria measure SPSS sustainability value. industry participated.
3. Method
3.2. Fuzzy delphi method
This section overviews the industry background, the method-
ology used in this study, the FDM, FISM and data collection. The FDM is a combination of fuzzy set theory and the traditional
Delphi method, and the combination requires less data collection
3.1. Industry background time and a smaller number of interviews. The experts express their
judgment about each criterion’s significance level, as shown in
Ecuador has modified its productive matrix, considering envi- Table 2. FDM converts the respondents’ judgment into a triangular
ronmental protection in the national constitution and fostering fuzzy number (TFN) to analyze their consensus and screen out
social benefits. Pharmaceutical manufacturing is among the in- nonessential criteria (Bouzon et al., 2016; Tseng et al., 2018). The
dustries changing. Since the 1990s, industrialized processes have TFN value of criterion a assessed by expert b is given as j ¼ ðxab ; yab ;
dominated the system of national production. However, low mar- zab Þ; a ¼ 1; 2; 3; …; n; b ¼ 1; 2; 3; …; m: The weight of element
ket share challenges have emerged due to imported drugs from b, jb is determined using the geometric mean aggregation method
giant manufacturers from China and India, which are priced lower as follows:
than domestic products. The national health system plays a vital Yn 1=n
role in the domestic market. The government created a central jb ¼ xb ¼ minðxab Þ; yb ¼ 1
ya b ; and zb ¼ maxðz ab Þ
procurement process, known as reverse bidding, with winning
firms supplying the public sector. Regulations and requirements (1)
such as the good manufacturing practices certification based on Later, the following equations are used for the aggregated TFNs
World Health Organization technical report 32 and regulatory en- using a cut:
tities such as the National Agency for Regulation, Control and
Surveillance of Health ensure the quality, efficiency, and safety of ub ¼ zb a ðzb yb Þ; lb ¼ xb aðyb yxb Þ; b ¼ 1; 2; 3; …; m
drugs marketed in the country. Ecuadorian pharmaceutical pro- (2)
duction entails 160 pharmaceutical manufacturing companies and
over 850 companies linked to the pharmaceutical market, repre- where a is the positive and negative perceptions of the re-
senting $4820M, that export to countries, such as Panama, Chile spondents, ranging from 0 to 1; under ordinary situations, a ¼ 0:5
and Peru (Andrade et al., 2019). Pharmaceutical firms invest heavily
in machinery and equipment, followed by infrastructure and a
minimal investment in research, training and certification (ALFE, Table 2
Linguistic scales.
2013). Additionally, Ecuadorian manufacturers need to import
active pharmaceutical ingredients, raw ingredients, and finished Linguistic terms (importance) Corresponding triangular fuzzy numbers
product packaging. The disruption in supply chains due to the Extreme (0.75, 1.0, 1.0)
COVID-19 pandemic severely impacts operations, and there is a Demonstrated (0.5, 0.75, 1.0)
need to change business processes. Strong (0.25, 0.5, 0.75)
The COVID-19 pandemic has changed customer demand, in- Moderate (0, 0.25, 0.5)
Equal (0, 0, 0.25)
dustrial activities, and society due to the cessation of economic
7
is usually adopted.
2 3
Finally, Db is determined as follows:
6 7
ð 6 7
6 7
Db ¼ ðub ; lb Þ ¼ d½ub þ ð1 dÞlb (3) 6 7
6 y 7
pj 7
6
6 y py2 7
6 p1 / 7
where d explains the positive level of the expert and establishes an 6 y 7
6 y p1j 7
equilibrium across expert opinions. 6 py1 py11 p12 / 7
6 7
The threshold value g allows screening criteria as g ¼ 6 7 h i
y 6 p2
y y y
/ y 7
Pn Pij ¼ 6 p21 p22 p2j 7 ¼ pij ; 0 pij 1
ðDb =nÞ; when Db > g, the criterion is accepted, and when Db < g, 6 7 nxn
6 7
a¼1 6 / / / 1 7
6 / 7
the criterion is rejected. 6 7
6 y
pi y
/ 7
6 pi1 y 7
6 pi2 7
6 pyij 7
6 7
6 7
3.3. Fuzzy interpretive structural modeling 6 7
4 5
Suppose there are y experts in a team, and the experts are asked
to evaluate the influence/importance of Dyij between criterion di and
Subsequently, the expected matrix X is computed as follows:
criterion dj ; i; j ¼ 1; 2; /; n using the linguistic terms shown in
h i
Table 2. Dyij is presented as follows:
X ¼ aij nxn x pij ¼ xij nn (9)
nn
2 3
y Then, the driving a and dependence b powers are obtained to
6 d1 dt2 / dtj 7
6 y 7 plot the diagram. The diagram is plotted using the a and b values as
6d dt11 dt12 / dt1n 7
6 1 7 the horizontal and vertical axes, respectively, and is divided into
y 6 7
Dij ¼ 6 dy dt dt / dt2n 7 (4) four quadrants.
6 2 21 22 7
6 7
6 « « « 1 « 7
4 t 5 hX
n i
di dtn1 dtn2 / t
dnn a¼ cij ¼ cai n1
nx1
i¼1
(10)
The expert judgments represent the qualitative information, hX
n i h i
which must be converted into the corresponding TFN values b¼ cij ¼ cbj
1xn 1n
i¼1
(shown in Table 2). Thus, Dyij is rewritten as ½xyij ; yyij ; zyij nxn . The study
followed the defuzzification process described as follows: Quadrant I has more robust driving and dependence power; it
The TFNs are normalized: consists of the linkage criteria. Quadrant II has lower driving power
and higher dependence power; the criteria here are dependent.
" y y

y y

y y
#
Quadrant III represents the autonomous area and has both lower
h i xij minxij yij minyij zij minzij
xyij ; yyij ; zyij ¼ ; ; driving and dependence power. Quadrant IV has more substantial
a a a driving power but has lower dependence power and is called the
(5) independent area.
The threshold ay and by values are generated to form a binary
where a ¼ maxzyij minxyij . reachability and antecedent matrix:
The left Lyij and right Ryij normalized values are computed:
hX
n i
, ! ay ¼ cij (11)
nx1
i¼1
Lyij ¼ yyij 1þ yyij xyij
If cij ay ; the reachability scale is considered to be 1; otherwise,
, ! (6)
it is considered to be 0.
y y y y
Rij ¼ zij 1 þ zij yij
hX
n i
by ¼ cij (12)
The crisp normalized values qyij of each expert are generated: 1xn
i¼1
h 2 i . If cij by , the antecedent scale is considered to be 1; otherwise,

qyij ¼ Lyij 1 Lyij þ Ryij 1 þ Ryij Lyij (7)
it is considered to be 0.
Accordingly, the binary intersection set S is obtained:
The experts’ crisp values are integrated to form the aggregating
matrix:
ay ¼ 1; R ¼ fC1 ; C2 ; C3 ; /Cn g; by ¼ 1; A ¼ fC1 ; C2 ; C3 ; /Cn g
n .
X
y y
Aij ¼ qij y ¼ aij nxn (8)
i;j¼1 S ¼ R∩A (13)
Furthermore, the study considers the probability of the rela- Finally, the frequency G of the intersection set of each criterion is
tionship between Ci and Cj , and the experts are asked to rate and computed. If the G value is the lowest, then this criterion needs to
confirm the probability as follows: be chosen as the first level, followed by the second, third, and so on.
8
Table 4
hX
n i FDM result.
G¼ sij ¼ sj 1n (14)
1xn Initial criteria lb ub Db Decision
j¼1
C1 0.625000 1.00000 0.916667 Accepted
C2 0.027403 0.847597 0.648398 Accepted
C3 0.316987 0.933013 0.788675 Accepted
C4 (0.04081) 0.915807 0.693871 Accepted
3.4. Best-worst method C5 (0.01296) 0.887961 0.675308 Accepted
C6 0.037260 0.837740 0.641827 Accepted
The BWM determines the weights of different criteria for a C7 0.004391 0.870609 0.663739 Accepted
C8 0.023284 0.851716 0.651144 Accepted
group of decision-makers. In the BWM, best-to-others and others-
C9 0.329267 0.920733 0.780489 Accepted
to-worst vectors are used to determine the criteria weights, C10 0.002454 0.872546 0.665030 Accepted
resulting in consistent comparisons and improving the reliability C11 (0.02428) 0.899284 0.682856 Accepted
(Rezaei, 2015, 2016). The best (most important) and worst (least C12 (0.00196) 0.876959 0.667973 Accepted
important) criteria are determined using the FDM results presented C13 (0.00196) 0.876959 0.667973 Accepted
C14 (0.00196) 0.876959 0.667973 Accepted
in Table 4. The weight of the criteria is defined as follows. C15 0.002454 0.872546 0.665030 Accepted
C16 0.002454 0.872546 0.665030 Accepted
X Bn ¼ ðxB1 ; xB2 ; xB3 ……xBn Þ (15) C17 (0.01296) 0.887961 0.675308 Accepted
C18 0.013019 0.861981 0.657987 Accepted
where X Bn denotes the best-to-others vector and C19 0.002454 0.872546 0.665030 Accepted
xBn ¼ ðaxy ; bxy ; cxy Þ represents the preference of attribute B over the C20 (0.02428) 0.899284 0.682856 Accepted
C21 (0.00842) 0.883419 0.672279 Accepted
nth attribute.
C22 (0.02902) 0.904015 0.686010 Accepted
C23 0.050680 0.824320 0.632880 Accepted
X mW ¼ ðx1W ; x2W ; x3W ……xmW ÞT (16) C24 0.027403 0.847597 0.648398 Accepted
C25 (0.04081) 0.915807 0.693871 Accepted
where XmW denotes the others-to-worst vector and C26 0.023284 0.851716 0.651144 Accepted
xmW ¼ ðaxy ; bxy ; cxy Þ represents the preference of attribute W over C27 (0.00196) 0.876959 0.667973 Accepted
C28 0.002454 0.872546 0.665030 Accepted
the mth attribute.
C29 0.013019 0.861981 0.657987 Accepted
A BWM linear model is adopted, and the maximum absolute C30 (0.07829) 0.953287 0.718858 Accepted
difference of all sets of m criteria should be minimized, as shown in Threshold (gÞ 0.601544
equation (17).
Maximum absolute difference ¼ ðjan xBn j; jbm xmW j Þ units are shown in Table 3. The Delphi panelists include eleven
(17) females and ten males representing research and development,
manufacturing, marketing and distribution. The experts’ current
where (an ; bm ) is computed as an ¼ wB
and bm ¼ wm
and positions include 3 managers, 8 analysts and 11 supervisors. This
wn wW
study aims to determine the SPSS criteria in the Ecuadorian phar-
arranged in a min-max model. maceutical industry during a crisis. The respondents are asked to
The linear model is as follows (Rezaei, 2016): consider the shortage of active ingredients, chemical precursors
8 9 and production and demand changes due to the COVID-19 crisis
> forminε >
>
< >
= while making a judgment regarding each criterion’s significance
L L
Model ¼ jwB wn xBn j ε ; jwm wW xmW j ε (18) level. The proposed set of 55 criteria and their descriptions (see
> X >
>
: w*n ¼ 1; w*n 0 >
; Appendix 1) are provided to the Delphi panelists. The panelists
n¼0 evaluated each criterion’s level of importance using the linguistic
scale shown in Table 2.
Hence, ðw*1 ; w*2 ; w*3 ; w*4…………; w*n Þ at the optimal weight value
of εL* are obtained; εL* is 2ð0; 1Þ, indicating that a value close to 1 4. Results
possesses less consistency, and a value close to 0 maintains more
consistency. This section explains the SPSS hierarchical framework results
and identifies the critical criteria for SPSS development.
3.5. Data collection
4.1. Fuzzy delphi method
This study involves 22 expert Delphi panelists working in
Ecuadorian pharmaceutical firms; the experts’ profiles and service Fifty-five criteria were introduced for the SPSS evaluation (see
Table 3
Expert profiles and service unit.
Service unit Experience in a service unit (Years) Number of experts
Research and development 5e10 3

Quality control 5e14 6
Communication and sales 6e11 6
Production 5e11 3
Quality assurance 7 & 14 2
Regulations and validation 7&8 2
Total 22
9
Appendix 1). The initial set was analyzed based on the experts’ identifying each criterion’s relative importance is necessary for
judgments. The linguistic judgment of the experts was transformed decision-making. Hence, by solving equation (18), the weights of
into TFNs, and the FDM was applied. The FDM results are presented the criteria and the comparisons’ consistency are determined, as
in Table 4 and Appendix 2, with the weights and threshold for shown in Fig. 3. All values of εL* are close to 0, indicating a high level
exclusion. The FDM results show that thirty criteria are over the of consistency. The criteria are not equally important; the relative
threshold value of 0.602, attain consensus among the experts, and weights of all criteria are computed, and ranking is assigned. Hence,
are identified as valid measures. R&D expertise and quality control are vital criteria for improving
innovations and operations efficiency. The results also indicate that
4.2. Fuzzy interpretive structural modeling reliability is the key to enhancing partnership and stakeholder in-
teractions, and firms can improve employee care and corporate
The respondents’ data were converted into TFNs using the lin- social responsibility by targeting safety and health, eco-innovation
guistic scale, as shown in Table 2. For illustration, the fuzzy struc- and eco-efficiency.
tural self-interaction matrix assessment from one expert is
presented in Table 5 and defuzzified, as shown in Table 6. Fig. 2 5. Implications
shows the cause-effect diagram between reliability (C3), service
innovation (C7), process innovation (C9), product innovation (C8), This section discusses the theoretical implications of SPSS and
productivity (C28), and R&D expertise (C30) as the most effective proposes managerial guidelines for improving SPSS performance in
criteria for SPSS development. the pharmaceutical industry.
Table 7 shows the integrated reachability matrix from the
aggregated results. The threshold values are generated, and the 5.1. Theoretical implications
data are converted into a binary-coded antecedent matrix, as
shown in Table 8. Table 9 displays the intersection between the This study deepens the understanding of SPSS, and the hierar-
reachability matrix and the antecedent matrix. The last two col- chical approach enhances the implementation of SPSS and pro-
umns in the intersection matrix offer information about the fre- poses a strategy to guarantee SPSS success. The 30 criteria are
quency and level of the criteria, and the 30 criteria are arranged into arranged in 6 aspects, improving the overall SPSS framework:
6 levels: empathy (L6), innovation activities (L5), partnership and customer empathy (A6), innovation and operations efficiency (A5),
stakeholder interactions (L4), cultural capability (L3), service- partnership and stakeholder interactions (A4), cultural capability
product assurance (L2), and corporate social responsibility (L1), as (A3), product-service assurance (A2), and employee care and
shown in Fig. 3. corporate social responsibility (A1).
Customer empathy refers to an intense focus on consumer
4.3. Best-worst method needs, requirements, and problems to gain insights to increase
value delivery. SPSS are characterized by close interaction with
In Fig. 3, level 5, level 4 and level 1 consist of multiple criteria; consumers, widening participation, communication, and empathy
Table 5
Fuzzy Set matrix respondent 1.
C1 C2 C3 C4 C5 C6 C7 C8 … C30
(x y z) (x y z) (x y z) (x y z) (x y z) (x y z) (x y z) (x y z) … (x y z)
C1 0.3 0.5 0.7 0.7 0.9 1.0 0.7 0.9 1.0 0.5 0.7 0.9 0.5 0.7 0.9 0.5 0.7 0.9 0.1 0.3 0.5 0.3 0.5 0.7 … 0.5 0.7 0.9
C2 0.3 0.5 0.7 0.3 0.5 0.7 0.1 0.3 0.5 0.3 0.5 0.7 0.3 0.5 0.7 0.5 0.7 0.9 0.1 0.3 0.5 0.5 0.7 0.9 … 0.3 0.5 0.7
C3 0.3 0.5 0.7 0.7 0.9 1.0 0.3 0.5 0.7 0.5 0.7 0.9 0.7 0.9 1.0 0.7 0.9 1.0 0.5 0.7 0.9 0.7 0.9 1.0 … 0.7 0.9 1.0
C4 0.5 0.7 0.9 0.7 0.9 1.0 0.7 0.9 1.0 0.3 0.5 0.7 0.7 0.9 1.0 0.5 0.7 0.9 0.5 0.7 0.9 0.7 0.9 1.0 … 0.7 0.9 1.0
C5 0.5 0.7 0.9 0.7 0.9 1.0 0.7 0.9 1.0 0.7 0.9 1.0 0.3 0.5 0.7 0.7 0.9 1.0 0.5 0.7 0.9 0.5 0.7 0.9 … 0.5 0.7 0.9
C6 0.7 0.9 1.0 0.5 0.7 0.9 0.7 0.9 1.0 0.7 0.9 1.0 0.5 0.7 0.9 0.3 0.5 0.7 0.7 0.9 1.0 0.5 0.7 0.9 … 0.5 0.7 0.9
C7 0.1 0.3 0.5 0.3 0.5 0.7 0.7 0.9 1.0 0.7 0.9 1.0 0.7 0.9 1.0 0.7 0.9 1.0 0.3 0.5 0.7 0.3 0.5 0.7 … 0.3 0.5 0.7
C8 0.1 0.3 0.5 0.5 0.7 0.9 0.7 0.9 1.0 0.5 0.7 0.9 0.5 0.7 0.9 0.7 0.9 1.0 0.3 0.5 0.7 0.3 0.5 0.7 … 0.7 0.9 1.0
C9 0.3 0.5 0.7 0.5 0.7 0.9 0.7 0.9 1.0 0.7 0.9 1.0 0.7 0.9 1.0 0.7 0.9 1.0 0.5 0.7 0.9 0.7 0.9 1.0 … 0.7 0.9 1.0
C10 0.1 0.3 0.5 0.1 0.3 0.5 0.7 0.9 1.0 0.7 0.9 1.0 0.7 0.9 1.0 0.5 0.7 0.9 0.3 0.5 0.7 0.1 0.3 0.5 … 0.3 0.5 0.7
C11 0.3 0.5 0.7 0.3 0.5 0.7 0.5 0.7 0.9 0.5 0.7 0.9 0.3 0.5 0.7 0.5 0.7 0.9 0.5 0.7 0.9 0.5 0.7 0.9 … 0.7 0.9 1.0
C12 0.5 0.7 0.9 0.5 0.7 0.9 0.7 0.9 1.0 0.7 0.9 1.0 0.7 0.9 1.0 0.7 0.9 1.0 0.7 0.9 1.0 0.7 0.9 1.0 … 0.7 0.9 1.0
C13 0.5 0.7 0.9 0.5 0.7 0.9 0.5 0.7 0.9 0.5 0.7 0.9 0.5 0.7 0.9 0.5 0.7 0.9 0.5 0.7 0.9 0.3 0.5 0.7 … 0.5 0.7 0.9
C14 0.5 0.7 0.9 0.3 0.5 0.7 0.5 0.7 0.9 0.5 0.7 0.9 0.3 0.5 0.7 0.7 0.9 1.0 0.5 0.7 0.9 0.3 0.5 0.7 … 0.5 0.7 0.9
C15 0.3 0.5 0.7 0.1 0.3 0.5 0.5 0.7 0.9 0.7 0.9 1.0 0.5 0.7 0.9 0.7 0.9 1.0 0.7 0.9 1.0 0.3 0.5 0.7 … 0.5 0.7 0.9
C16 0.3 0.5 0.7 0.3 0.5 0.7 0.3 0.5 0.7 0.7 0.9 1.0 0.3 0.5 0.7 0.7 0.9 1.0 0.5 0.7 0.9 0.3 0.5 0.7 … 0.7 0.9 1.0
C17 0.3 0.5 0.7 0.1 0.3 0.5 0.3 0.5 0.7 0.7 0.9 1.0 0.3 0.5 0.7 0.7 0.9 1.0 0.3 0.5 0.7 0.1 0.3 0.5 … 0.7 0.9 1.0
C18 0.0 0.1 0.3 0.1 0.3 0.5 0.1 0.3 0.5 0.0 0.1 0.3 0.1 0.3 0.5 0.3 0.5 0.7 0.1 0.3 0.5 0.0 0.1 0.3 … 0.1 0.3 0.5
C19 0.0 0.1 0.3 0.3 0.5 0.7 0.3 0.5 0.7 0.3 0.5 0.7 0.1 0.3 0.5 0.3 0.5 0.7 0.1 0.3 0.5 0.0 0.1 0.3 … 0.3 0.5 0.7
C20 0.1 0.3 0.5 0.5 0.7 0.9 0.5 0.7 0.9 0.5 0.7 0.9 0.1 0.3 0.5 0.5 0.7 0.9 0.1 0.3 0.5 0.1 0.3 0.5 … 0.5 0.7 0.9
C21 0.1 0.3 0.5 0.5 0.7 0.9 0.3 0.5 0.7 0.3 0.5 0.7 0.3 0.5 0.7 0.3 0.5 0.7 0.3 0.5 0.7 0.0 0.1 0.3 … 0.5 0.7 0.9
C22 0.0 0.1 0.3 0.3 0.5 0.7 0.1 0.3 0.5 0.3 0.5 0.7 0.1 0.3 0.5 0.5 0.7 0.9 0.1 0.3 0.5 0.5 0.7 0.9 … 0.7 0.9 1.0
C23 0.0 0.1 0.3 0.3 0.5 0.7 0.1 0.3 0.5 0.3 0.5 0.7 0.1 0.3 0.5 0.5 0.7 0.9 0.3 0.5 0.7 0.7 0.9 1.0 … 0.7 0.9 1.0
C24 0.1 0.3 0.5 0.3 0.5 0.7 0.1 0.3 0.5 0.3 0.5 0.7 0.1 0.3 0.5 0.5 0.7 0.9 0.3 0.5 0.7 0.7 0.9 1.0 … 0.5 0.7 0.9
C25 0.1 0.3 0.5 0.5 0.7 0.9 0.3 0.5 0.7 0.5 0.7 0.9 0.7 0.9 1.0 0.3 0.5 0.7 0.5 0.7 0.9 0.7 0.9 1.0 … 0.7 0.9 1.0
C26 0.3 0.5 0.7 0.3 0.5 0.7 0.7 0.9 1.0 0.7 0.9 1.0 0.5 0.7 0.9 0.5 0.7 0.9 0.7 0.9 1.0 0.7 0.9 1.0 … 0.7 0.9 1.0
C27 0.1 0.3 0.5 0.3 0.5 0.7 0.3 0.5 0.7 0.3 0.5 0.7 0.3 0.5 0.7 0.5 0.7 0.9 0.5 0.7 0.9 0.7 0.9 1.0 … 0.7 0.9 1.0
C28 0.3 0.5 0.7 0.5 0.7 0.9 0.7 0.9 1.0 0.7 0.9 1.0 0.5 0.7 0.9 0.5 0.7 0.9 0.5 0.7 0.9 0.7 0.9 1.0 … 0.7 0.9 1.0
C29 0.5 0.7 0.9 0.7 0.9 1.0 0.5 0.7 0.9 0.7 0.9 1.0 0.5 0.7 0.9 0.5 0.7 0.9 0.7 0.9 1.0 0.7 0.9 1.0 … 0.5 0.7 0.9
C30 0.3 0.5 0.7 0.5 0.7 0.9 0.5 0.7 0.9 0.7 0.9 1.0 0.5 0.7 0.9 0.7 0.9 1.0 0.5 0.7 0.9 0.7 0.9 1.0 … 0.3 0.5 0.7
10
Table 6
Crisp value (qÞ respondent 1.
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12 … C20 C21 C22 C23 C24 C25 C26 C27 C28 C29 C30
C1 0.38 0.64 0.64 0.58 0.44 0.29 0.00 0.38 0.76 0.22 0.22 0.00 … 0.58 0.44 0.44 0.00 0.00 0.58 0.76 0.19 0.76 0.69 0.69
C2 0.38 0.22 0.00 0.38 0.22 0.29 0.00 0.58 0.58 0.22 0.00 0.00 … 0.38 0.00 0.22 0.22 0.22 0.76 0.38 0.38 0.58 1.00 0.35
C3 0.38 0.64 0.22 0.58 0.64 0.53 0.44 0.76 0.76 0.44 0.00 0.29 … 0.76 0.64 0.22 0.44 0.44 0.76 0.58 0.38 0.58 1.00 1.00
C4 0.58 0.64 0.64 0.38 0.64 0.29 0.44 0.76 0.76 0.64 0.00 0.29 … 0.58 0.64 0.22 0.44 0.22 0.76 0.76 0.38 0.76 0.69 1.00
C5 0.58 0.64 0.64 0.76 0.22 0.53 0.44 0.58 0.58 0.64 0.44 0.29 … 0.58 0.64 0.22 0.44 0.44 0.76 0.76 0.38 0.58 0.69 0.69
C6 0.76 0.44 0.64 0.76 0.44 0.00 0.64 0.58 0.58 0.64 0.22 0.29 … 0.58 0.64 0.44 0.64 0.44 0.58 0.76 0.58 0.76 0.69 0.69
C7 0.19 0.22 0.64 0.76 0.64 0.53 0.22 0.38 0.76 0.44 0.22 0.29 … 0.38 0.64 0.44 0.64 0.64 0.38 0.76 0.58 0.76 0.35 0.35
C8 0.19 0.44 0.64 0.58 0.44 0.53 0.22 0.38 0.76 0.00 0.64 0.29 … 0.19 0.22 0.44 0.64 0.64 0.58 0.58 0.76 0.38 0.69 1.00
C9 0.38 0.44 0.64 0.76 0.64 0.53 0.44 0.76 0.38 0.00 0.64 0.29 … 0.38 0.44 0.44 0.64 0.64 0.58 0.76 0.76 0.76 0.69 1.00
C10 0.19 0.00 0.64 0.76 0.64 0.29 0.22 0.19 0.58 0.22 0.44 0.00 … 0.38 0.64 0.00 0.44 0.44 0.38 0.76 0.58 0.58 0.35 0.35
C11 0.38 0.22 0.44 0.58 0.22 0.29 0.44 0.58 0.76 0.22 0.22 0.29 … 0.19 0.00 0.00 0.00 0.00 0.58 0.38 0.76 0.38 0.69 1.00
C12 0.58 0.44 0.64 0.76 0.64 0.53 0.64 0.76 0.76 0.22 0.64 0.00 … 0.38 0.22 0.44 0.44 0.22 0.38 0.58 0.58 0.58 0.69 1.00
C13 0.58 0.44 0.44 0.58 0.44 0.29 0.44 0.38 0.58 0.64 0.00 0.00 … 0.76 0.64 0.44 0.44 0.64 0.38 0.58 0.58 0.58 0.35 0.69
C14 0.58 0.22 0.44 0.58 0.22 0.53 0.44 0.38 0.58 0.44 0.64 0.00 … 0.58 0.44 0.22 0.64 0.44 0.38 0.58 0.38 0.58 0.69 0.69
C15 0.38 0.00 0.44 0.76 0.44 0.53 0.64 0.38 0.38 0.44 0.44 0.29 … 0.38 0.44 0.22 0.44 0.22 0.58 0.58 0.38 0.76 0.69 0.69
C16 0.38 0.22 0.22 0.76 0.22 0.53 0.44 0.38 0.58 0.44 0.22 0.00 … 0.00 0.22 0.64 0.44 0.44 0.58 0.58 0.58 0.58 1.00 1.00
C17 0.38 0.00 0.22 0.76 0.22 0.53 0.22 0.19 0.58 0.44 0.44 0.00 … 0.19 0.44 0.44 0.44 0.44 0.76 0.58 0.58 0.76 1.00 1.00
C18 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 … 0.76 0.64 0.00 0.00 0.00 0.19 0.00 0.19 0.00 0.00 0.00
C19 0.00 0.22 0.22 0.38 0.00 0.00 0.00 0.00 0.19 0.22 0.22 0.00 … 0.76 0.44 0.00 0.00 0.22 0.19 0.00 0.19 0.19 0.00 0.35
C20 0.19 0.44 0.44 0.58 0.00 0.29 0.00 0.19 0.38 0.44 0.22 0.29 … 0.38 0.44 0.44 0.22 0.44 0.19 0.38 0.19 0.38 0.35 0.69
C21 0.19 0.44 0.22 0.38 0.22 0.00 0.22 0.00 0.19 0.64 0.22 0.29 … 0.76 0.22 0.22 0.22 0.44 0.19 0.38 0.38 0.38 0.35 0.69
C22 0.00 0.22 0.00 0.38 0.00 0.29 0.00 0.58 0.76 0.00 0.00 0.00 … 0.19 0.00 0.22 0.64 0.64 0.00 0.58 0.19 0.38 0.35 1.00
C23 0.00 0.22 0.00 0.38 0.00 0.29 0.22 0.76 0.76 0.22 0.00 0.00 … 0.19 0.22 0.44 0.22 0.64 0.00 0.19 0.19 0.19 0.35 1.00
C24 0.19 0.22 0.00 0.38 0.00 0.29 0.22 0.76 0.58 0.22 0.00 0.00 … 0.38 0.00 0.22 0.44 0.22 0.00 0.38 0.00 0.38 0.00 0.69
C25 0.19 0.44 0.22 0.58 0.64 0.00 0.44 0.76 0.76 0.00 0.22 0.29 … 0.38 0.22 0.64 0.22 0.44 0.38 0.58 0.19 0.76 1.00 1.00
C26 0.38 0.22 0.64 0.76 0.44 0.29 0.64 0.76 0.76 0.22 0.44 0.29 … 0.38 0.22 0.64 0.00 0.00 0.58 0.38 0.38 0.76 1.00 1.00
C27 0.19 0.22 0.22 0.38 0.22 0.29 0.44 0.76 0.58 0.00 0.44 0.53 … 0.00 0.00 0.64 0.22 0.22 0.19 0.38 0.38 0.19 0.69 1.00
C28 0.38 0.44 0.64 0.76 0.44 0.29 0.44 0.76 0.76 0.64 0.22 0.29 … 0.38 0.22 0.64 0.22 0.00 0.76 0.76 0.38 0.38 1.00 1.00
C29 0.58 0.64 0.44 0.76 0.44 0.29 0.64 0.76 0.76 0.44 0.44 0.00 … 0.19 0.22 0.64 0.44 0.00 0.38 0.76 0.58 0.76 0.35 0.69
C30 0.38 0.44 0.44 0.76 0.44 0.53 0.44 0.76 0.76 0.22 0.44 0.00 … 0.19 0.22 0.44 0.44 0.44 0.58 0.76 0.76 0.76 1.00 0.35
meet stakeholder needs and increase the product-service value

(Calabrese et al., 2018; Tseng et al., 2018). SPSS require adapting to
customer and environmental changes by transforming firm capa-
bilities to meet demand (Song and Sakao, 2017). Innovation activ-
ities influence firms, consumers, and suppliers, creating knowledge
and demanding new value-chain capabilities. The interaction with
innovation activities is considered a holistic approach to improve
value creation and enhance product-service value, stakeholder in-
teractions, and firms’ economic performance and consumer drivers.
Innovation is driven by economic performance and viability, which
are essential for project maintenance and benefit employees, firms
and society (Zhang et al., 2019; Tseng et al., 2019). Innovation ac-
tivities reduce cost and time, enhance stakeholder interaction,
engage consumers, and increase SPSS acceptance (Vezzoli et al.,
Fig. 2. SPSS criteria in the Ecuadorian pharmaceutical industry during a crisis.
2015; Song, 2018; Tseng et al., 2018). SPSS require a deep rela-
tionship with different stakeholders, promoting partnership and
among stakeholders and thus affecting firms’, teams’ and in- stakeholder interactions, exchanging knowledge, and improving
dividuals’ performance. Decision-making based on customer understanding and communicating capabilities to cocreate value.
empathy has proven to be beneficial to business, increasing Partnership and stakeholder interactions refer to stakeholder
customer perceptions of service and product quality in addition to agreement to share joint capabilities and visions and communicate
economic and functional benefits (Xing et al., 2013; Chou et al., with each other to increase profit, support the value chain, and
2015; Tseng et al., 2019). Service providers must learn about their define project success (Vezzoli et al., 2015; Raddats et al., 2017;
operational capabilities and customer needs, especially in inte- Feng and Ma, 2020). SPSS entail a complex interaction of suppliers,
grated services and manufacturing contracts. Customer empathy competences and environment; therefore, strategic partnerships
provides insight into the necessary capabilities for product life based on capabilities, goals, and resources determine the product-
extension and material reduction and allows consumer access to service value and provide a collaborative advantage in competitive
facilities and equipment without requiring ownership, increasing markets (Tseng et al., 2018, 2019). Stakeholder interactions inside
the product-service value (Bocken et al., 2016; Song, 2018). As new and outside the firm increase openness and flexibility to adapt to
business models arise and consumers accept or reject their offer- changes and innovate, thus developing human capital and
ings, customer empathy can help gain consumer acceptance of SPSS achieving economic performance and environmental benefits.
and, based on the requirements, enable innovation to create addi- Partnership and stakeholder interaction increase information
tional value. sharing, aiding in the decision-making process and aligning activ-
Innovation and operations efficiency include the design, devel- ities to address issues promptly. Such partnerships allow different
opment and improvement of products, services and processes to stakeholders’ perspectives to be explored, increasing trust,
11
Y.T. Negash, L.S. Calahorrano Sarmiento, M.-L. Tseng et al.
Table 7
Integrative reachability matrix.
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12 C13 C14 C15 C16 C17 C18 C19 C20 C21 C22 C23 C24 C25 C26 C27 C28 C29 C30
C1 9.6 8.9 10.0 9.9 9.4 9.2 10.2 10.4 10.4 10.0 8.9 9.7 9.2 9.8 9.7 9.7 9.6 8.2 8.1 8.4 8.4 9.2 9.1 8.7 9.7 9.5 9.0 10.2 10.0 10.4
C2 7.6 7.1 7.9 7.8 7.4 7.3 8.0 8.1 8.2 7.9 7.1 7.8 7.4 7.8 7.7 7.6 7.5 6.7 6.6 6.8 6.8 7.3 7.2 6.9 7.7 7.5 7.1 8.1 7.9 8.2
C3 10.0 9.4 10.5 10.3 9.9 9.8 10.6 10.7 10.8 10.5 9.5 10.4 9.8 10.4 10.3 10.2 10.0 8.9 8.8 9.1 9.0 9.5 9.4 9.1 10.1 9.9 9.3 10.7 10.4 10.8
C4 9.0 8.3 9.4 9.3 8.8 8.7 9.5 9.6 9.7 9.3 8.3 9.1 8.6 9.2 9.1 9.1 9.0 7.8 7.7 8.0 7.9 8.5 8.3 8.0 9.0 9.0 8.4 9.6 9.3 9.6
C5 8.4 7.8 8.8 8.7 8.3 8.3 8.9 9.0 9.1 8.8 7.9 8.7 8.2 8.7 8.6 8.5 8.4 7.4 7.3 7.6 7.5 7.9 7.8 7.5 8.5 8.4 7.8 9.0 8.7 9.1
C6 8.8 8.2 9.3 9.1 8.7 8.6 9.3 9.4 9.5 9.2 8.3 9.1 8.6 9.1 9.0 8.9 8.8 7.7 7.6 7.9 7.8 8.3 8.2 8.0 8.8 8.7 8.2 9.4 9.1 9.5
C7 9.8 9.1 10.2 10.1 9.6 9.5 10.4 10.6 10.7 10.2 9.1 10.0 9.4 10.1 10.0 9.9 9.8 8.4 8.3 8.6 8.6 9.4 9.3 8.9 9.9 9.7 9.2 10.5 10.2 10.7
C8 9.8 9.1 10.2 10.1 9.6 9.5 10.5 10.6 10.8 10.2 9.1 9.9 9.4 10.0 10.0 10.0 9.9 8.3 8.2 8.5 8.5 9.5 9.4 9.0 10.0 9.7 9.2 10.5 10.2 10.7
C9 10.1 9.3 10.4 10.4 9.8 9.7 10.7 11.0 11.0 10.5 9.4 10.2 9.7 10.3 10.2 10.3 10.2 8.6 8.5 8.8 8.7 9.8 9.7 9.2 10.2 10.0 9.5 10.7 10.5 11.0
C10 8.1 7.5 8.5 8.4 8.0 8.0 8.6 8.7 8.8 8.5 7.7 8.3 8.0 8.4 8.3 8.2 8.1 7.2 7.1 7.3 7.3 7.8 7.6 7.3 8.2 8.0 7.6 8.6 8.4 8.8
C11 6.2 5.9 6.6 6.4 6.2 6.2 6.6 6.7 6.8 6.7 6.1 6.6 6.2 6.6 6.5 6.4 6.3 5.8 5.7 5.9 5.8 6.0 5.9 5.7 6.3 6.2 5.9 6.7 6.5 6.8
C12 10.3 9.7 10.9 10.7 10.2 10.1 11.0 11.1 11.3 10.9 9.9 10.7 10.2 10.7 10.7 10.6 10.4 9.2 9.1 9.4 9.3 9.9 9.7 9.4 10.5 10.3 9.7 11.1 10.8 11.3
C13 8.4 8.0 8.9 8.7 8.3 8.3 8.9 9.0 9.1 9.0 8.1 8.8 8.3 8.8 8.7 8.6 8.4 7.7 7.7 7.9 7.8 8.1 7.9 7.7 8.5 8.3 7.8 9.0 8.8 9.0
12
C14 9.2 8.6 9.7 9.5 9.1 9.0 9.7 9.8 9.9 9.6 8.7 9.5 9.0 9.5 9.4 9.3 9.2 8.1 8.1 8.3 8.3 8.7 8.6 8.3 9.2 9.1 8.6 9.8 9.5 9.9
C15 8.9 8.4 9.5 9.3 8.9 8.8 9.5 9.6 9.7 9.5 8.6 9.3 8.8 9.3 9.2 9.2 9.0 8.0 7.9 8.2 8.1 8.6 8.4 8.1 9.0 8.9 8.4 9.6 9.3 9.7
C16 9.1 8.5 9.5 9.4 8.9 8.8 9.7 9.9 10.0 9.5 8.5 9.3 8.8 9.4 9.4 9.3 9.2 7.9 7.7 8.0 8.0 8.7 8.7 8.3 9.3 9.1 8.6 9.8 9.5 10.0
C17 8.6 8.0 9.0 8.9 8.5 8.4 9.2 9.4 9.4 9.0 8.1 8.8 8.3 8.9 8.8 8.9 8.7 7.5 7.4 7.6 7.6 8.2 8.1 7.8 8.7 8.6 8.2 9.2 9.0 9.5
C18 5.6 5.4 6.1 5.9 5.7 5.7 6.0 5.9 6.0 6.1 5.7 6.1 5.8 6.1 5.9 5.8 5.7 5.5 5.5 5.6 5.6 5.4 5.3 5.2 5.7 5.6 5.2 6.0 5.9 6.0
C19 5.4 5.2 5.9 5.6 5.4 5.5 5.7 5.7 5.8 5.9 5.5 5.8 5.6 5.8 5.7 5.6 5.5 5.4 5.3 5.5 5.5 5.2 5.0 4.9 5.5 5.3 5.0 5.8 5.6 5.8
C20 6.8 6.6 7.3 7.0 6.8 6.7 7.2 7.2 7.4 7.3 6.7 7.2 6.9 7.2 7.1 6.9 6.8 6.4 6.4 6.5 6.5 6.6 6.4 6.3 6.9 6.7 6.3 7.3 7.1 7.3
C21 7.0 6.7 7.5 7.2 7.0 7.0 7.4 7.4 7.5 7.5 6.9 7.4 7.1 7.4 7.2 7.1 7.0 6.6 6.6 6.8 6.7 6.7 6.5 6.4 7.1 6.9 6.5 7.5 7.3 7.5
C22 8.1 7.6 8.4 8.3 7.9 7.8 8.6 8.8 8.9 8.5 7.5 8.3 7.8 8.3 8.3 8.3 8.2 7.0 6.9 7.1 7.1 7.9 7.9 7.6 8.3 8.0 7.6 8.7 8.5 8.9
C23 7.6 7.2 7.9 7.8 7.4 7.3 8.2 8.4 8.5 8.0 7.1 7.8 7.4 7.8 7.8 7.8 7.7 6.5 6.4 6.7 6.6 7.6 7.5 7.2 7.9 7.6 7.2 8.2 8.1 8.4
C24 7.4 7.0 7.6 7.6 7.2 7.1 7.9 8.1 8.2 7.8 6.9 7.6 7.2 7.6 7.6 7.6 7.4 6.3 6.2 6.5 6.5 7.3 7.3 7.0 7.7 7.4 7.0 8.0 7.8 8.1
C25 8.7 8.1 9.0 9.0 8.5 8.3 9.3 9.5 9.6 9.1 8.0 8.8 8.3 8.9 8.8 8.9 8.8 7.3 7.2 7.6 7.5 8.5 8.4 8.0 8.9 8.7 8.2 9.4 9.2 9.5
C26 8.9 8.3 9.3 9.2 8.7 8.6 9.4 9.5 9.7 9.3 8.3 9.1 8.6 9.1 9.0 9.0 8.9 7.7 7.6 7.9 7.8 8.5 8.4 8.0 9.0 8.8 8.3 9.5 9.3 9.7
C27 7.1 6.5 7.4 7.3 7.0 6.8 7.6 7.7 7.8 7.4 6.7 7.3 6.8 7.3 7.3 7.3 7.2 6.0 5.9 6.2 6.1 6.8 6.8 6.5 7.2 7.0 6.8 7.6 7.4 7.8
C28 10.1 9.4 10.6 10.4 9.9 9.8 10.7 10.9 11.0 10.6 9.5 10.4 9.8 10.4 10.3 10.3 10.1 8.9 8.7 9.1 9.0 9.7 9.5 9.2 10.3 10.1 9.4 10.8 10.6 11.0

C29 9.4 8.7 9.7 9.7 9.2 9.1 10.0 10.1 10.3 9.8 8.7 9.6 9.0 9.6 9.6 9.6 9.4 8.1 7.9 8.3 8.2 9.0 8.9 8.5 9.6 9.4 8.8 10.1 9.8 10.3
C30 9.4 8.6 9.7 9.7 9.2 9.1 10.0 10.3 10.3 9.7 8.7 9.6 9.0 9.6 9.6 9.6 9.5 7.9 7.8 8.1 8.0 9.1 9.0 8.6 9.5 9.3 8.9 10.0 9.8 10.3
Table 8
Antecedent matrix of criteria.
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12 C13 C14 C15 C16 C17 C18 C19 C20 C21 C22 C23 C24 C25 C26 C27 C28 C29 C30
C1 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C2 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1
C3 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1
C4 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C5 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C6 1 0 1 1 1 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C7 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C8 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C9 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C10 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1
C11 0 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1
C12 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1
C13 0 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1
13
C14 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1
C15 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1
C16 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C17 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C18 0 0 1 1 0 0 1 1 1 1 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1
C19 0 0 1 1 0 0 1 1 1 1 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1
C20 0 0 1 1 0 0 1 1 1 1 0 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1
C21 0 0 1 1 0 0 1 1 1 1 0 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1
C22 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C23 0 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C24 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C25 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C26 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C27 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C28 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1

C29 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
C30 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1
Table 9
Intersection set of criteria.
C1 C2 C3 C4 C5 C6 C7 C8 C9 C10 C11 C12 C13 C14 C15 C16 C17 C18 C19 C20 C21 C22 C23 C24 C25 C26 C27 C28 C29 C30 F L
C1 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5
C2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
C3 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1 16 4
C4 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5
C5 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 2 2
C6 1 0 1 1 1 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 18 6
C7 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5
C8 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5
C9 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5
C10 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
C11 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
C12 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1 16 4
C13 0 0 1 0 0 0 0 0 0 1 0 1 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6 3
C14 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1 16 4
14
C15 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1 16 4
C16 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5
C17 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5
C18 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
C19 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
C20 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
C21 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
C22 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
C23 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
C24 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
C25 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5
C26 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5
C27 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1
C28 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5

C29 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5
C30 1 0 1 1 0 0 1 1 1 1 0 1 0 1 1 1 1 0 0 0 0 0 0 0 1 1 0 1 1 1 17 5
F¼ Frequency, L ¼ Level.
Fig. 3. SPSS hierarchical framework in the pharmaceutical industry during a crisis.
commitment and participation to develop strategies and initiatives service quality (Tseng et al., 2019; Annarelli et al., 2020). Cultural
to satisfy changing customer needs (Song, 2018; Gardas et al., capability is critical for SPSS adoption and success because group
2019). Partnership and stakeholder interactions align capabilities, values and attitudes affect daily activities and interactions among
resources and goals to create value in SPSS. stakeholders, thereby contributing to the value creation process.
Cultural capability refers to the values, habits and attitudes of Cultural capability relies on teamwork ability and contributes to
groups within a firm, providing the ability to cope with changes, team performance, project success and product-service assurance.
innovate and succeed. SPSS depend on change management, Product-service assurance refers to activities, processes,
innovation and adaptation to customer requirements, integrating knowledge and policies that ensure a predefined quality level and
data-driven decisions and demanding receptive cultures. Cultural performance, including data collection for failure prevention and
capability is essential and achieved by incorporating a safe psy- maintenance (Lee et al., 2015; Chou et al., 2015; Tseng et al., 2019).
chological climate and establishing goals to motivate teams. Psy- Product-service assurance increases customer satisfaction and
chological safety enhances teamwork and creates an environment loyalty because a consistent offering creates customer trust and
for information exchange, reducing errors and increasing team credibility in future product services. In this aspect, reliability and
performance (Andersson et al., 2020). Cultural capability is an access assurance affect the product-service performance and eco-
original resource generating a competitive advantage that is nomic drivers, offer a product or service with constant availability
affected by internal stakeholder perception of the product and and performance, minimize errors, and improve quality, therefore
15
increasing the SPSS product-service value (Xing et al., 2013; Song, different from the normal customer demand, the project may fail.
2018; Tseng et al., 2019). Customization requires flexibility and To overcome this challenge, firms can create a new organization or
openness to innovating and changing operations and processes; in outsource innovation activities, depending on their size and flexi-
this scenario, assurance is critical to maintaining production and bility. Good managerial guidelines are not enough when facing
quality standards to meet customer demands. Employee and team innovation. Tracking customer demand, allocating resources based
knowledge ensure operational correctness, highlighting commu- on trends, and listening to high-end customers may compromise a
nication skills in detecting, analyzing, and solving problems that firm’s ability to innovate, creating conflict and customer rejection
affect value delivery. Product-service assurance supports product- due to the innovation fulfilling a future need. A good practice is to
service value and value creation in SPSS. listen to all customers, especially small customers, as they are the
Employee care and corporate social responsibility refer to firm first to adapt to new products and demands due to their flexibility.
environmental consciousness and human development in the SPSS Product innovation is linked to R&D expertise, particularly in the
supply chain, strategies and activities. Firms use corporate social outsourcing context.
responsibility to communicate sustainability goals to stakeholders, R&D expertise (C30) is the set of skills and expertise in devel-
thus increasing their competitiveness; however, profit maximiza- oping products, services, and processes to create a commercial
tion affects corporate social responsibility performance (Kuo and opportunity that differentiates a firm from its competitors and re-
Smith, 2018). Corporate social responsibility can be achieved sults in growth. R&D expertise requires analytical laboratory fa-
through efficient resource use, environmental impact reduction, cilities, creativity, negotiation, and project management skills, as
and eco-innovations fostered by an environmentally friendly cul- teams work over short periods to meet rigorous deadlines. R&D
ture as well as employee welfare and care, equity, justice, safety and requires a long-term vision and high investment; however, many
health (Li and Hamblin, 2016; Belkhir and Elmeligi, 2019). From the firms allocate only a small fraction of their total budget to R&D, as
sustainable production perspective, corporate social responsibility the return on investment is indistinguishable in the short term. The
is required to deliver the SPSS sustainability value. Corporate social research and development phases of new products start with po-
responsibility aims to reduce a company’s environmental footprint tential drug or active compound scanning. Compound effectivity
and assure employee social benefits. Environmental criteria and and safety are tested on cells and animal models; finally, clinical
corporate social responsibility are lower-level aspects in the pro- trials involve treating many people with the new drug to ensure
posed hierarchical model. Thus, due to the impact of the COVID-19 efficiency. This process tends to be costly and lengthy, as it takes
crisis, the complex and rapid challenges arising from the disruption 5e10 years to deploy a new drug in the market. In addition, strict
in supply chains shift the strategies and actions to a less environ- regulations and high prices diminish the effects of R&D expertise.
mentally sustainable model (Yu et al., 2020). Hence, focusing on However, firms seeking to apply successful SPSS can enhance R&D
corporate social responsibility improves SPSS value creation, which expertise, not only with the development of new drugs but also by
is critical for implementation. seeking alternative drug uses. Commercial product alternative uses
require low investment and avoid registration costs and clinical
5.2. Managerial implications trials.
Service innovation (C7) is the development of new services or
This study identifies process innovation (C9), product innova- incremental improvement of current services to differentiate a firm
tion (C8), R&D expertise (C30), service innovation (C7), produc- from its competitors and gain customer loyalty. The pharmaceutical
tivity (C28), and reliability (C3) as the most significant criteria. industry, primarily manufacturing firms, must understand how
Process innovation (C9) is related to stakeholder innovation services impact the different stakeholders, value chain and pro-
activities, such as process changes in production, automation, or duction. Firms orchestrate value delivery with society, and in-
new modes of enhancing productivity. Process innovation can be novations must aim to solve customers’ fast-changing
achieved through new production methods that improve requirements. The COVID-19 pandemic has shown how rapid
manufacturing efficiency. Process innovation relies on internal and changes in consumer behavior affect production and services and
external stakeholder requirements; therefore, communication is create a need to adjust to customers worried about infections and
key. Internally, creating a strategy to enhance communication to aid afraid of physical contact. The change to nonphysical services was
innovation through different communication channels, such as increasing but had not been fully adopted in the pharmaceutical
digital and paper-based channels, is recommended. Externally, industry. Retailers and suppliers may identify small changes in a
communication should be strengthened and marketing campaigns portion of their clients, but then, a crisis shifts production and
launched to align offerings with innovations. Firms must match services aggressively. Service innovation involves working closely
their internal and external communications to enhance personal with customers and partnerships, such as strategic alliances based
commitment, create trust in innovation teams, synchronize re- on innovation requirements. Changes in services impact the entire
quirements and enhance collaboration. Communicating firm goals, supply chain; this alliance is relevant in adjusting to changes to
strategies and objectives creates an innovation culture, which is key coordinate operations and resources. Social behavior, profit and
for the innovation process. Employees are directly involved in partnerships affect service innovation, thereby transforming the
production and service processes, so prompt communication of product-service value in SPSS.
suggestions and innovation messages provides motivation. Addi- Reliability (C3) means maintaining records free of errors and
tionally, employees should communicate ideas, improve processes correcting how activities are performed, assuring consistency in the
and help leaders overcome any resistance that may arise in service-product offering. Equipment maintenance, operations reg-
response to changes. istries and quality control are important for assuring reliability in
Product innovation (C8) is relevant for SPSS. It entails two the pharmaceutical industry. Different measures in the industry
different types of innovation: product incremental innovation en- allow the implementation of reliability accounting, especially for
hances product characteristics to provide better performance, for errors in operations. An appropriate traceback allows any problem
example, packaging improvement for drug delivery or the combi- to be detected to ensure consistency in production and service
nation of new chemicals to improve drug efficiency, and product delivery. Other components that need to be taken into account are
radical innovation creates new products and value. In the latter measures and indexes that allow measuring the probability of
case, firms must be careful because if the new value is extremely success, quality overtime under specific conditions, and
16
determining customer satisfaction. Reliability is associated with innovation drives partnership, a receptive culture and corporate
quality changes over time, as inadequate control of conditions will social responsibility to support sustainable production and value
result in product and service quality variations, rendering SPSS creation. The findings also highlight that customer empathy im-
unreliable in providing the promised value and therefore losing proves operations efficiency and increases customer loyalty and
credibility and consumers. Product and services providers maintain product-service value in SPSS. Innovation activities influence
specific records of their activities, operations and working condi- products, services and processes, increasing profit and flexibility.
tions to duplicate operative conditions, maintain consistent results Stakeholders are key for SPSS strategic partnerships and in-
and trace back any failure that affects product-service delivery. teractions that increase communication, participation and
Crisis affects working conditions, as firms cannot control external commitment to align the supply chain to reduce environmental
forces; for example, in Ecuador’s pharmaceutical industry, most impact, develop human capital, and improve economic perfor-
active ingredients are imported. A lockdown in a different part of mance. Flexibility and changes require operational adaptation;
the world creates a shortage in the supply of chemical precursors, therefore, cultural capability is crucial to SPSS, especially a culture
affecting overall productivity and product consistency. receptive to change, innovation and communication. Finally,
Productivity (C28) is the prompt implementation of projects and corporate social responsibility deals with environmental concerns,
effective production measures as outputs per input. Businesses eco-innovation and eco-efficiency activities, and social re-
seeking to increase productivity must study people, processes, and sponsibility focuses on employee development and perceptions
machines; scrutinize the workflow; and understand how compo- such as equity, welfare and care.
nents contribute to overall efficiency. In pharmaceutical The top five criteria that influence SPSS in the pharmaceutical
manufacturing, equipment affects productivity, and prompt main- industry are R&D expertise, process innovation, product innova-
tenance and cleaning are required to increase productivity. If mation, reliability and productivity. These criteria can help decision-
chines are scheduled for the manufacture of different products, makers and managers enhance efficiency. Process and product
deep cleaning is required, with downtimes exceeding 24 h innovation rely on creating new products, processes, or improve-
depending on the equipment, impacting productivity. It is neces- ments based on stakeholder needs. R&D expertise encompasses
sary to schedule cleaning and maintenance operations in a way that analytical laboratory and project management skills to implement
ensures productivity. Another way to improve productivity is to new projects and innovate, driving customers’ decision to choose a
adopt new technologies such as hardware and software. Prompt firm’s products and services. Reliability focuses on error reduction
communication of consumer requirements requires quick action and constant quality provision by maintaining records of opera-
and readiness in product and services delivery. Equipment up- tions, working conditions and equipment. Productivity results from
grades and modern equipment acquisition are linked to costly in- a project’s rapid implementation and improved output per input,
vestment; however, productivity will increase in the long term, affecting a firm’s profitability and efficiency. Thus, PSS imple-
especially in automation cases. Manufacturing firms have been mentation can be guided by the proposed framework in the hier-
implementing robots and inline machines, diminishing handwork archical order offered by FISM, driving and improving decision-
and human capital as another alternative to increase productivity. making and operational performance. Guidelines based on R&D
During a crisis, productivity can be affected in different forms, such expertise, process innovation, product innovation, reliability and
as supplier changes and resource reduction; however, prevision, productivity are discussed to help managers improve their
planning, and prompt communication with suppliers and cus- decision-making process and facilitate SPSS implementation.
tomers can increase productivity in normal circumstances and a A limitation is that the proposed criteria were based on a liter-
crisis context. ature review that may not fully explain their complexity. Future
studies should include additional criteria to deepen SPSS compre-
6. Conclusion hension. The number of respondents was 22, which could bias the
study due to their specific knowledge and experience. Increasing
SPSS implementation has the potential to achieve sustainability the number of respondents is recommended for future studies.
and create a competitive advantage in the pharmaceutical industry. Furthermore, a comparative study of manufacturers and consumers
However, the value creation process needs to be better understood may result in different priorities, which will increase SPSS accept-
in terms of how additional value can be created, especially by firms ability and performance. The FDM and FISM were used in a cross-
adopting a servitization approach during a crisis. The COVID-19 sectional study, and comparing results from other methodologies
crisis has affected production and service provision, requiring is advisable, as different methodologies weight criteria and aspects
flexibility and adaptability; firms adopting SPSS create additional differently. Future studies should also consider the need to incor-
value and improve profit and sustainability. In this study, four porate digital twin and blockchain-enabled SPSS in the pharma-
perspectives were used to analyze the value creation process in ceutical sector. Providing a framework for other industries is
SPSS: product-service value, stakeholders, sustainable production encouraged in future studies to increase knowledge regarding SPSS
and sustainable consumption. This study applied a combined and their contextual behavior.
method, including FDM, FISM and BWM, to the Ecuadorian phar-
maceutical industry. The linguistic preferences of the respondents
were converted into crisp values to evaluate the complexity. The
FDM was used to validate the attributes. FISM arranged the aspects CRediT authorship contribution statement
into a hierarchical framework to provide a guide for implementa-
tion, and the BWM was applied to determine the criteria weight in Yeneneh Tamirat Negash: Writing - original draft, Original
the hierarchical framework. Writing, Writing - review & editing, Conceptualization, and Final
This study validated six aspects with 30 criteria. The results Editing. Liria Salome Calahorrano Sarmiento: Writing - original
show that customer empathy, innovation and operations efficiency, draft, Original Writing, Writing - review & editing, Final Editing.
partnership and stakeholder interactions, cultural capability, Ming-Lang Tseng: Writing - original draft, Original Writing,
service-product assurance and corporate social responsibility are Writing - review & editing, Conceptualization, and Final Editing.
essential to SPSS implementation. The hierarchical framework in- Korbkul Jantarakolica: Writing - review & editing, Final Editing.
dicates that customer empathy is a precondition for innovation, and Kimhua Tan: Writing - review & editing, Final Editing.
17
Declaration of competing interest Technology, Taiwan (108-2221-E-468 -004 -MY2)
This study is free of Conflict of interests.
Acknowledgments Appendix 1. A detailed list of 55 criteria affecting the SPSS
This study is partially funded by Ministry of Science and
P1 Product-Service IC1 Manufacturing quality Good manufacturing certification or ISO 9000s series and quality control Haleem et al. (2015);
value control during the manufacturing process Lee et al. (2015); Ding (2018);
IC2 Tangibles Image of physical facilities and employee appearance Song (2018)
IC3 Reliability Performing services right, maintaining error-free records Chou et al. (2015);
IC4 Responsiveness Quick response, and always ready to solve problems Tseng et al. (2019)
IC5 Product-service Knowledgeable and professional employees Calebrese et al. (2018);
assurance Tseng et al. (2018)
IC6 Customer empathy Understanding customers’ needs and interests Cepeda (2007)
IC7 Service innovation Introduction of new services or improvements to current services Tseng et al. (2019); Andersson et al. (2020)
IC8 Product innovation New products or improvement
IC9 Process innovation Changes “behind the scenes” to enhancing productivity and efficiency
IC10 Management New methods to organization management, external relationships, and
innovation internal collaboration
IC11 Regulatory capability Proprietorship of legal entities like intellectual property rights, contracts
and trade secrets
IC12 Positional capability A consequence of past actions that produced a certain reputation with
customers
IC13 Functional capability Know-how, skill and experience of employees and suppliers to do a
specific work
IC14 Cultural capability Habits, convictions and values of the individuals in the firm
P2 Stakeholders IC15 Geography proximity The close proximity of different stakeholders in the supply chain Song (2018)
IC16 Stakeholders trust Stakeholder’s belief in mutual benefit and activities/contracts fulfillment Raddats et al. (2017)
IC17 Stakeholders Efforts to maintain a long-term relationship Paslauski et al. (2017)
commitment Fan et al. (2017)
IC18 Stakeholders Activities to improve stakeholder’s communication and decision making Chou et al. (2015); Sausa-Zomer et al.
participation (2016)
IC19 Networks creation Ability to build long-lasting relationships Chou et al. (2015)
IC20 Knowledge Learn of the different stakeholder’s capabilities
development
IC21 Knowledge exchange Sharing, access, understanding and use of knowledge for decision making
IC22 Environmental Inability to accurately predict how the environment will change
uncertainty
IC23 Employee equity An anti-discrimination and equal opportunity
IC24 Employee justice Legitimacy and reasonableness of working content
IC25 Safety & health Feeling safety and health at the working content and workplace
IC26 Employee self- Opportunities to express creativity improvement belonging to the firm
actualization
IC27 Welfare & care Employee benefits and assistance
IC28 Employee Participation Participation in the decision-making process and empowerment
IC29 Employee structure Managers, subordinates, and workmates relations
P3 Sustainable IC30 Energy and water Energy and water consumed through the manufacturing process Sousa-Zomer and Cauchick (2018)
production consumption Sousa-Zomer and Cauchick (2018); Belkhir
IC31 Waste generation Generation of waste in the supply chain and Elmeligi (2019)
IC32 Greenhouse gas Emissions of greenhouse gas Li and Hamblin (2016)
emissions Milanesi et al. (2020)
IC33 Renewable resource Use of renewable resources Zhang et al. (2019)
IC34 Eco-efficiency Efficient use of resources to reduce environmental impact Song (2018); Ding (2018); Gardas et al.
IC35 Environmental Environmental certifications like ISO 14001 or others related to (2019)
certification environmental management systems Annarelli et al. (2020)
IC36 Eco-innovation Innovations aim to reduce the environmental impact Song (2018)
IC37 Environmental related Industrial government regulations and policies
regulations
IC38 Environmental- Culture aims to protect the environment and prevent pollution
friendly culture
IC39 Corporate Voluntary social activities to help the community
volunteerism
IC40 Patient-centric Innovation in pharmaceutical packaging to provide adequate therapies
packaging
IC41 Responsible Responsible engagement of activities related to Direct-to-consumer
advertising
IC42 Cost reduction Distribution and production cost reduction
IC43 Agility and Flexibility Ability to rapidly change strategies to adopt new environments and
requirements
IC44 Un-replicability Copy protection for resources and processes
IC45 Productivity Fast implementation of new projects and efficiency in production
P4 Sustainable IC46 Environmental Expertise in environmental protection Ding (2018)
consumption expertise Retamal (2017); de Jesus Pacheco et al.
18
(continued )
IC47 Purchase preference Preferential purchase for recycling materials (2019)

IC48 Criteria selection Environmental criteria in green supplier selection White et al. (2019)
IC49 Sustainability Sustainability awareness Zeeuw van der Laan and Aurisicchio (2020)
awareness Song (2018)
IC50 Social norms Socially appropriate actions and behaviors
IC51 Social identity Identify as part of a group or association
IC52 Monetary incentives Monetary incentives such as rebates, tiered pricing, and cash
IC53 Warranty Monetary cover of unexpected performance of products
IC54 Cost and time Cost and time reduction compared to owning the equipment and facilities
IC55 R&D expertise Research and development expertise, knowledge and ability to execute
new projects and innovate
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