IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxivy2021ispecial3p185-202.html
   My bibliography  Save this article

Service Sector Productivity in the European Union Member States

Author

Listed:
  • Kamil Decyk

Abstract

Purpose: The aim of this study was to identify the level of EU service sector productivity. Design/Methodology/Approach: Three research methods were used: overview and critique of literature in the field of described subject, monographic method (using an analysis of secondary data) and statistical method using descriptive statistics (arithmetic average, standard deviation). Productivity research concerned sectors of EU countries during 2008-2016 in terms of indicators. Countries were classified using factors such as scale of production, labour productivity and fixed asset productivity. In the mentioned period the dynamic and the level of these factors were determined. Findings: The results allowed the positive verification of the proposed research hypothesis. Service sectors of countries with lower economic and social growth (production potential) were characterized by a higher level of productivity of fixed assets. Such countries included: Cyprus, Denmark, Greece, Bulgaria. At the same time, it was noted that the highest indicators of productivity were present in: Luxembourg, Denmark, Ireland and, for labour productivity, also Bulgaria, Greece, Cyprus. Practical Implications: Practical recommendations is important especially in countries with indices at a low level. They are particularly at risk of relatively low competitiveness compared to other EU countries. Good practices aimed at preventing this could include stimulating innovation in service enterprises, e.g. regarding the implementation of innovative solutions. Originality/Value: Productivity is regarded as one of the features that impact competitiveness, which has the important role in the blobalised world economy. Moreover, the issue of productivity in the service sector is a less popular topic than the same issue concerning the industrial sector. Lastly, findings and conclusions from this paper, may inspire researchers to conduct in-depth research of the productivity issues, for example: a combination of a study of the service sector productivity with the innovation potential as well as its innovativeness and quality.

Suggested Citation

  • Kamil Decyk, 2021. "Service Sector Productivity in the European Union Member States," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 185-202.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:special3:p:185-202
    as

    Download full text from publisher

    File URL: https://www.ersj.eu/journal/2422/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Roman Kisiel & Dagmara Wisniewska, 2016. "The Service Sector In Poland As The Affecting Factor To The Growth In The Economy," OLSZTYN ECONOMIC JOURNAL, University of Warmia and Mazury in Olsztyn, Faculty of Economic Sciences, vol. 11(3), pages 227-240, August.
    2. Timo Kuosmanen & Timo Sipiläinen, 2004. "On the Anatomy of Productivity Growth: A Decomposition of the Fisher Ideal TFP Index," Econometrics 0410010, University Library of Munich, Germany.
    3. Marcel P. Timmer & Mary O’Mahony & Bart van Ark, 2007. "EU KLEMS Growth and Productivity Accounts: An Overview," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 71-85, Spring.
    4. Aleksander Jakimowicz & Daniel Rzeczkowski, 2019. "Do barriers to innovation impact changes in innovation activities of firms during business cycle? The effect of the Polish green island," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 14(4), pages 631-676, December.
    5. Quang-Thanh Ngo & Quang-Van Tran & Tien-Dung Nguyen & Trung-Thanh Nguyen, 2020. "How Heterogeneous Are the Determinants of Total Factor Productivity in Manufacturing Sectors? Panel-Data Evidence from Vietnam," Economies, MDPI, vol. 8(3), pages 1-25, July.
    6. Mai Huong Giang & Tran Dang Xuan & Bui Huy Trung & Mai Thanh Que & Yuichiro Yoshida, 2018. "Impact of Investment Climate on Total Factor Productivity of Manufacturing Firms in Vietnam," Sustainability, MDPI, vol. 10(12), pages 1-18, December.
    7. Eugene W. Anderson & Claes Fornell & Roland T. Rust, 1997. "Customer Satisfaction, Productivity, and Profitability: Differences Between Goods and Services," Marketing Science, INFORMS, vol. 16(2), pages 129-145.
    8. Kristina Matuzeviciute & Mindaugas Butkus & Akvile Karaliute, 2017. "Do Technological Innovations Affect Unemployment? Some Empirical Evidence from European Countries," Economies, MDPI, vol. 5(4), pages 1-19, December.
    9. Snyder, Hannah & Witell, Lars & Gustafsson, Anders & Fombelle, Paul & Kristensson, Per, 2016. "Identifying categories of service innovation: A review and synthesis of the literature," Journal of Business Research, Elsevier, vol. 69(7), pages 2401-2408.
    10. Rizwan Raheem Ahmed & Giedrius Romeika & Raimonda Kauliene & Justas Streimikis & Rimantas Dapkus, 2020. "ES-QUAL model and customer satisfaction in online banking: evidence from multivariate analysis techniques," Oeconomia Copernicana, Institute of Economic Research, vol. 11(1), pages 59-93, March.
    11. Aleksander Jakimowicz & Daniel Rzeczkowski, 2019. "Firm ownership and size versus innovation activities over the business cycle: near-zero inertia as a sign of the transition from the fifth to the sixth Kondratieff wave," Oeconomia Copernicana, Institute of Economic Research, vol. 10(4), pages 689-741, December.
    12. Michal Brzozowski, 2018. "Credit volatility and productivity growth," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 13(2), pages 215-232, June.
    13. Jakub Growiec & Łukasz Marć, 2009. "Produktywność czynników w krajach OECD," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 9, pages 23-47.
    14. Robert Stefko & Richard Fedorko & Radovan Bacik & Martin Rigelsky & Maria Olearova, 2020. "Effect of service quality assessment on perception of TOP hotels in terms of sentiment polarity in the Visegrad group countries," Oeconomia Copernicana, Institute of Economic Research, vol. 11(4), pages 721-742, December.
    15. Adam P. Balcerzak & Michal Bernard Pietrzak, 2016. "Quality of Human Capital in European Union in the Years 2004-2013. Application of Structural Equation Modeling," Chapters, in: Proceedings of the International Scientific Conference Quantitative Methods in Economics Multiple Criteria Decision Making XVIII, edition 1, volume 1, chapter 1, pages 7-11, Institute of Economic Research.
    16. Antonio Alleyne & Troy Lorde & Quinn Weekes, 2017. "A Firm-Level Investigation of Innovation in the Caribbean: A Comparison of Manufacturing and Service Firms," Economies, MDPI, vol. 5(3), pages 1-18, September.
    17. Ramez Abubakr Badeeb & Hooi Hooi Lean, 2017. "Natural Resources and Productivity: Can Banking Development Mitigate the Curse?," Economies, MDPI, vol. 5(2), pages 1-14, April.
    18. Gronroos, Christian & Ojasalo, Katri, 2004. "Service productivity: Towards a conceptualization of the transformation of inputs into economic results in services," Journal of Business Research, Elsevier, vol. 57(4), pages 414-423, April.
    19. Tomasz Kijek & Anna Matras-Bolibok, 2019. "The relationship between TFP and innovation performance: evidence from EU regions," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 14(4), pages 695-709, December.
    20. Walentyna Kwiatkowska, 2015. "The Service Sector In The Economy In Poland And European Union Countries," OLSZTYN ECONOMIC JOURNAL, University of Warmia and Mazury in Olsztyn, Faculty of Economic Sciences, vol. 10(3), pages 191-207, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lionel Nicod & Sylvie Llosa, 2018. "How should customers be trained in their role as coproducers? The influence of training and its characteristics on the benefits of coproduction," Post-Print hal-03513344, HAL.
    2. Justyna Łapińska & Iwona Escher & Joanna Górka & Agata Sudolska & Paweł Brzustewicz, 2021. "Employees’ Trust in Artificial Intelligence in Companies: The Case of Energy and Chemical Industries in Poland," Energies, MDPI, vol. 14(7), pages 1-20, April.
    3. Luria Gil & Gal Iddo & Yagil Dana, 2015. "Spending more time with the customer: service-providers’ behavioral discretion and call-center operations," Service Business, Springer;Pan-Pacific Business Association, vol. 9(3), pages 427-443, September.
    4. Viitamo, Esa, 2014. "Service productivity, technology and organization - Converting theory to praxis," ETLA Working Papers 26, The Research Institute of the Finnish Economy.
    5. Hai Quang Nguyen, 2021. "Total Factor Productivity Growth of Vietnamese Enterprises by Sector and Region: Evidence from Panel Data Analysis," Economies, MDPI, vol. 9(3), pages 1-17, August.
    6. Aleksander Jakimowicz & Daniel Rzeczkowski, 2021. "The Impact of Public Administration Digitalization on the Decarbonization of the Economy," Energies, MDPI, vol. 14(18), pages 1-45, September.
    7. Jochen Wirtz & Valarie Zeithaml, 2018. "Cost-effective service excellence," Journal of the Academy of Marketing Science, Springer, vol. 46(1), pages 59-80, January.
    8. Chanho Song & Sungha Jang & Jennifer Wiggins & Edward Nowlin, 2019. "Does haste always make waste? Service quantity, service quality, and incentives in speed-intensive service firms," Service Business, Springer;Pan-Pacific Business Association, vol. 13(2), pages 289-304, June.
    9. Dobmeier, Mirjam, 2016. "Understanding and managing service productivity: A literature review," jbm - Journal of Business Market Management, Free University Berlin, Marketing Department, vol. 9(1), pages 518-540.
    10. Sharma, Vivek & Bhat, Dada Ab Rouf, 2020. "An empirical study exploring the relationship among human capital innovation, service innovation, competitive advantage and employee productivity in hospitality services," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 9(2), pages 1-14..
    11. Molnárová, Zuzana & Reiter, Michael, 2022. "Technology, demand, and productivity: What an industry model tells us about business cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 134(C).
    12. Iftekhairul Islam & Fahad Shaon, 2020. "If the Prospect of Some Occupations Are Stagnating With Technological Advancement? A Task Attribute Approach to Detect Employment Vulnerability," Papers 2001.02783, arXiv.org.
    13. Kox, Henk L.M. & Leeuwen, George van & Wiel, Henry van der, 2010. "Competitive, but too small - productivity and entry-exit determinants in European business services," MPRA Paper 24389, University Library of Munich, Germany.
    14. Blessing Atwine & Ibrahim Mike Okumu & John Bosco Nnyanzi, 2023. "What drives the dynamics of employment growth in firms? Evidence from East Africa," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-25, December.
    15. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    16. Zhang, Jason Q. & Craciun, Georgiana & Shin, Dongwoo, 2010. "When does electronic word-of-mouth matter? A study of consumer product reviews," Journal of Business Research, Elsevier, vol. 63(12), pages 1336-1341, December.
    17. Yeung, Matthew C.H. & Ramasamy, Bala & Chen, Junsong & Paliwoda, Stan, 2013. "Customer satisfaction and consumer expenditure in selected European countries," International Journal of Research in Marketing, Elsevier, vol. 30(4), pages 406-416.
    18. Severin Oesterle & Arne Buchwald & Nils Urbach, 2022. "Investigating the co-creation of IT consulting service value: empirical findings of a matched pair analysis," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 571-597, June.
    19. Georges Daw, 2022. "Determinants of Wealth Disparities in the EU: A Multi-scale Development Accounting Investigation," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(2), pages 211-254, June.
    20. Aleknavičiūtė Rasa & Skvarciany Viktorija & Survilaitė Simona, 2016. "The Role of Human Capital for National Innovation Capability in Eu Countries," Economics and Culture, Sciendo, vol. 13(1), pages 114-125, June.

    More about this item

    Keywords

    TFP - total factor productivity; labour productivity; fixed assets productivity; scale of production; service sector; European Union.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxiv:y:2021:i:special3:p:185-202. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.