The Dark Side of Providing Industrial Product-service Systems – Perceived Risk as a key Challenge from a Customer-centric Point of View

While the provision of industrial product-service systems (IPS2) is considered to be traditional manufacturers’ way out of stagnant markets, research has so far neglected potential negative outcomes of IPS2 provision. The authors derive propositions about inherent characteristics of IPS2 provision that increase customers’ perceived risk – customers’ need uncertainty, challenges of evaluating IPS2 performance, change processes triggered by IPS2 implementations and entering long term relationships. Further, consequences of customers’ risk perception are presented. Understanding sources and consequences of customers’ high risk perception enables researchers and practitioners to develop relevant risk reduction strategies and argument purchase probabilities.