Service value chains and effects of scale |
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Authors: | Bart Nooteboom |
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Institution: | (1) Faculty of Economics and Business Administration, Organization and Strategy, Tilburg University, P.O. Box 90153, 5000 LE Tilburg, The Netherlands |
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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.
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Keywords: | Value chain Service strategy Effects of scale |
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