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Service value chains and effects of scale


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  • Bart Nooteboom



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 utilities of forms and function of goods, characteristic of manufacturing, to utilities of time, place, convenience, speed, safety, entertainment, physical and mental wellbeing, 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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Bibliographic Info

Article provided by Springer in its journal Service Business.

Volume (Year): 1 (2007)
Issue (Month): 2 (June)
Pages: 119-139

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Handle: RePEc:spr:svcbiz:v:1:y:2007:i:2:p:119-139

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Keywords: Value chain; Service strategy; Effects of scale;

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  1. Nooteboom , B., 1982. "A new theory of retailing costs," Open Access publications from Tilburg University urn:nbn:nl:ui:12-373306, Tilburg University.
  2. Nooteboom, B., 1993. "Firm size effects on transaction costs," Open Access publications from Tilburg University urn:nbn:nl:ui:12-376115, Tilburg University.
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Cited by:
  1. 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.
  2. Arachchige, J.J., 2013. "A unified modeling framework for service design," Open Access publications from Tilburg University urn:nbn:nl:ui:12-5904328, Tilburg University.
  3. Joaquín Guzmán & Pilar Moreno & Pilar Tejada, 2008. "The tourism SMEs in the global value chains: the case of Andalusia," Service Business, Springer, vol. 2(3), pages 187-202, September.
  4. 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.
  5. Domingo Soriano & Salvador Dobon, 2009. "Linking globalization of entrepreneurship in small organizations," Small Business Economics, Springer, vol. 32(3), pages 233-239, March.


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