Service value chains and effects of scale

Bart Nooteboom

Service Business, 2007, vol. 1, issue 2, 119-139

Abstract: This paper generalizes Porter’s notion of the value chain for the analysis of service industries. The generalization entails that the flow and the physical transformation and assembly of goods that are characteristic of manufacturing are generalized into flows and transformation of data and flows and transformation of the physical and mental condition of people that are characteristic of many service industries. Utility is generalized from the utilities of forms and function of goods, characteristic of manufacturing, to the utilities of time, place, convenience, speed, safety, entertainment, physical and mental well-being, knowledge and mental capacity, funding and assurance. The analysis yields a categorization of industries according to central features of the value adding process. Here, the analysis is used to identify sources of (in)efficiency of scale, scope and experience, along the value chain. Copyright Springer-Verlag 2007

Keywords: Value chain; Service strategy; Effects of scale (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (16)

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Working Paper: Service Value Chains and Effects of Scale (2007)
Working Paper: Service value chains and effects of scale (2007)
Working Paper: Service Value Chains and Effects of Scale (2007)
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DOI: 10.1007/s11628-006-0009-4

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