Smart product-service systems (PSS) offer manufacturers the potential to create superior value for customers. Their development and commercialization, however, often force manufacturers to complement own competencies and resources with those from external partners, thus underlining the need for strategic collaboration. This paper aims to advance the knowledge about smart PSS by analyzing configurations of actors and activities that contribute to the creation smart PSS. Using an activity system perspective and a configurational approach, we explain the creation of smart PSS. Using fuzzy-set Qualitative Comparative Analysis (fsQCA), we analyze data from a qualitative study and identify two equifinal configurations for the creation of smart PSS. Our findings advance the smart PSS literature by uncovering the interplay between critical parameters of an activity system and environmental factors. As a managerial contribution, we provide templates for designing new activity systems to generate smart PSS.