Environmental constraints, Product-Service Systems development and impacts on innovation management: learning from manufacturing firms in the French context

• Eco-innovation strategies favor the development of PSS in manufacturing firms.
• The studied firms mainly develop basic hybrid products or product-oriented services.
• Eco-design is a source of PSS development particularly in the end of life stage.
• PSS development impacts internal and external management of innovation.
• There are prerequisites and difficulties associated with PSS development.

Environmental constraints lead to important changes in the innovation strategies of manufacturing firms. In this paper, the development of Product-Service Systems (PSS) in 10 manufacturing firms that are part of the French CAC40 Index is studied. A special effort is made to investigate the reasons and the forms of PSS development, their impact on innovation management as well as the prerequisites and limits of their implementation. The case study analysis shows the links between eco-innovation strategy and PSS development. The PSS provided by firms remain mainly basic hybrid products with product-oriented services while only a limited number of pure hybrid products with use or result-oriented services are currently being developed. Regarding the innovation management issues, eco-innovation strategy and PSS development increase the need for external skills and thus require open innovation strategies. Finally, the ability to develop PSS appears to be linked to the firms' internal learning and their position within the value chain.