Competitiveness experiences of Botswana SMEs in the leather industry and their perceptions of sustainability and product service systems

As competition increases and becomes even more globalised, manufacturing companies continue to search for new value creation business strategies. Traditional value creation approaches often disconnect producers from customers at the point of sale. Design innovation has the capacity to encompass product and service contexts of offerings increasing the opportunity to sell, promoting sustainability and long term relationships with customers and other stakeholders. This paper explores factors affecting SMEs competitiveness and their perceptions of sustainability and product service systems. Findings from interviews with eighteen SMEs in the leather industry in Botswana show that with a lack of design innovation there is a culture of copying among SMEs who continue to fail to sell in a small domestic market infiltrated by an influx of cheap imports. Following SMEs positive perceptions of design, PSS and sustainability, opportunities to engage SMEs are identified mainly driven by SMEs need for financial benefits. The paper concludes by recommendations from some best practice exemplars, proposing further research for driving competitiveness through design capabilities and sustainable PSS.