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Service value chains and effects of scale

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  • Bart Nooteboom

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

Suggested Citation

  • Bart Nooteboom, 2007. "Service value chains and effects of scale," Service Business, Springer;Pan-Pacific Business Association, vol. 1(2), pages 119-139, June.
    • Handle: RePEc:spr:svcbiz:v:1:y:2007:i:2:p:119-139
    DOI: 10.1007/s11628-006-0009-4
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    1. Nooteboom, Bart, 1982. "A new theory of retailing costs," European Economic Review, Elsevier, vol. 17(2), pages 163-186.
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    Cited by:

    1. Sang M. Lee & Jin Sung Rha, 2018. "A network text analysis of published papers in service business, 2007–2017: research trends in the service sector," Service Business, Springer;Pan-Pacific Business Association, vol. 12(4), pages 809-831, December.
    2. Sojung Kim & Byungun Yoon, 2012. "Developing a process of concept generation for new product-service systems: a QFD and TRIZ-based approach," Service Business, Springer;Pan-Pacific Business Association, vol. 6(3), pages 323-348, September.
    3. Sang-Heui Lee & Jay Wyk, 2015. "National institutions and logistic performance: a path analysis," Service Business, Springer;Pan-Pacific Business Association, vol. 9(4), pages 733-747, December.
    4. Joaquín Guzmán & Pilar Moreno & Pilar Tejada, 2008. "The tourism SMEs in the global value chains: the case of Andalusia," Service Business, Springer;Pan-Pacific Business Association, vol. 2(3), pages 187-202, September.
    5. Anthony William Bennett & Simone Mueller Loose, 2023. "Benchmarking Economic Sustainability: What Factors Explain Heterogeneity between Wine Businesses?," Sustainability, MDPI, vol. 15(24), pages 1-20, December.
    6. Don Jeng & Sky Kuo, 2012. "Internal service quality within the different Chinese subcultures: a comparison between Taiwan, China, and Singapore," Service Business, Springer;Pan-Pacific Business Association, vol. 6(4), pages 425-458, December.
    7. Rainer Lanz & Andreas Maurer, 2015. "Services and Global Value Chains: Servicification of Manufacturing and Services Networks," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 1-18.
    8. Domingo Soriano & Salvador Dobon, 2009. "Linking globalization of entrepreneurship in small organizations," Small Business Economics, Springer, vol. 32(3), pages 233-239, March.
    9. Borham Yoon & Yeasun Chung & Kyungyul Jun, 2020. "Restaurant Industry Practices to Promote Healthy Sustainable Eating: A Content Analysis of Restaurant Websites Using the Value Chain Approach," Sustainability, MDPI, vol. 12(17), pages 1-16, September.
    10. Ángeles Montoro-Sánchez & Marta Ortiz-de-Urbina-Criado & Ana M. Romero-Martínez, 2009. "The Decision to Use Alliances as Corporate Entrepreneurship: The Role of Resources and Skills," Group Decision and Negotiation, Springer, vol. 18(5), pages 431-448, September.
    11. Jayasinghe Arachchig, J., 2013. "A unified modeling framework for service design," Other publications TiSEM 6a285c11-de61-4bbc-9a6c-4, Tilburg University, School of Economics and Management.
    12. Christian Keen & Yuanyuan Wu, 2011. "An ambidextrous learning model for the internationalization of firms from emerging economies," Journal of International Entrepreneurship, Springer, vol. 9(4), pages 316-339, December.
    13. Lanz, Rainer & Maurer, Andreas, 2015. "Services and global value chains: Some evidence on servicification of manufacturing and services networks," WTO Staff Working Papers ERSD-2015-03, World Trade Organization (WTO), Economic Research and Statistics Division.
    14. Alok Baveja & Ajai Kapoor & Benjamin Melamed, 2020. "Stopping Covid-19: A pandemic-management service value chain approach," Annals of Operations Research, Springer, vol. 289(2), pages 173-184, June.
    15. José García-Quevedo & Francisco Mas-Verdú, 2008. "Does only size matter in the use of knowledge intensive services?," Small Business Economics, Springer, vol. 31(2), pages 137-146, August.
    16. Ricardo Ernst & Jose Ignacio López-Sánchez & David Urbano, 2009. "A Negotiation Model for Inducing Higher Service in a Distribution Channel," Group Decision and Negotiation, Springer, vol. 18(5), pages 499-517, September.

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    More about this item

    Keywords

    Value chain; Service strategy; Effects of scale;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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