Measuring the functional dynamics of product-service system: A system dynamics approach

•We address the concept of functional dynamics as a distinctive measure of PSS functionality.•This paper measures the functional dynamics of product-service system using system dynamics.•We propose a five-phase analytic scheme of functional dynamics.•We suggest a four-step procedure using system dynamics to measure the functional dynamics.•A case study of a u-healthcare system is presented. In the light of the prevailing trend towards product-service systems (PSSs), this paper focuses on the measurement of PSS functional performance. As a ‘dynamic’ system wherein various stakeholders achieve functional performance through long-term relationships in a complex value network, PSS functional performance requires a dynamic approach for measuring its effectiveness, an approach that is missing in the literature. This study aims to fill that void. Firstly, we address the concept of functional dynamics as a distinctive measure of PSS functionality with regard to functional performance and propose a five-phase analytic scheme of functional dynamics. Then, to measure the functional dynamics of PSS using the analytic scheme, a four-step procedure based on the system dynamics is suggested. As a representative method for measuring the long-term dynamics of a complex system, system dynamics is effectively employed to measure PSS’s functional dynamics comprehensively. To illustrate the proposed approach, a case study of a u-healthcare system is presented.