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Service value chains and effects of scale

  • Bart Nooteboom

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    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

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    File URL: http://hdl.handle.net/10.1007/s11628-006-0009-4
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    Article provided by Springer & Pan-Pacific Business Association 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
    DOI: 10.1007/s11628-006-0009-4
    Contact details of provider: Web page: http://www.springer.com

    Web page: http://www.panpacificbusiness.org/

    Order Information: Web: http://www.springer.com/business/journal/11628

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    1. Nooteboom, B., 1982. "A new theory of retailing costs," Other publications TiSEM 5c1be7a9-2d77-4bfb-9e64-4, Tilburg University, School of Economics and Management.
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