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Service value chains and effects of scale


  • 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 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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    References listed on IDEAS

    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-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.
    2. 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.
    3. repec:spr:grdene:v:18:y:2009:i:5:d:10.1007_s10726-008-9135-9 is not listed on IDEAS
    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. 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.
    6. 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.
    7. 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.
    8. 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.
    9. repec:spr:svcbiz:v:12:y:2018:i:4:d:10.1007_s11628-018-0377-6 is not listed on IDEAS
    10. repec:wsi:jicepx:v:06:y:2015:i:03:n:s1793993315500143 is not listed on IDEAS
    11. Domingo Soriano & Salvador Dobon, 2009. "Linking globalization of entrepreneurship in small organizations," Small Business Economics, Springer, vol. 32(3), pages 233-239, March.
    12. repec:spr:grdene:v:18:y:2009:i:5:d:10.1007_s10726-008-9139-5 is not listed on IDEAS

    More about this item


    Value chain; Service strategy; Effects of scale;

    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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