Exploring how product–service systems drive service innovation and social sustainability

In the context of globalization, supporting social sustainability through innovation has become an important issue in regional development. In response, Taiwan has implemented local revitalization policies to support local industries and social innovation. This exploratory study investigates how Product-Service Systems (PSS) support service innovation, social innovation, and social sustainability. Two case studies, Shidianzi 69 Organic Bookstore and Beginners’ Market in Guanxi Township, Hsinchu County, Taiwan, were examined to explore how PSS operates, how stakeholders integrate resources, and how service innovation is implemented to contribute to social value. The findings show that PSS supports field-observed service activities, including new customer interfaces, revenue models, service concepts, value creation, and service delivery systems. These activities are shown to support participant-reported social benefits that underpin social innovation. Given the exploratory dual-case design, rather than asserting fully demonstrated long-term sustainability outcomes, the study identifies empirical pathways through which these immediate benefits can support long-term sustainable development. Ultimately, the study provides context-specific insights and recommendations for rural revitalization, community development, and sustainable local governance through innovative service and resource integration.