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Systematic performance differences across the manufacturing-service continuum


  • Richard Reed


  • Susan Storrud-Barnes



It is becoming clear that management theories developed for manufacturing may not be wholly applicable to service firms. Evidence suggests that economic rents tend to occur at the business level in manufacturing, whereas they arise at the corporate level in services. We address this issue in terms of the characteristics of goods and services, and their effects on the drivers of firm performance across the manufacturing-service continuum. We deduce that the effects are non-linear and vary according to whether products are tangible standardized goods, customized goods and services, or standardized intangible services. Copyright Springer-Verlag 2009

Suggested Citation

  • Richard Reed & Susan Storrud-Barnes, 2009. "Systematic performance differences across the manufacturing-service continuum," Service Business, Springer;Pan-Pacific Business Association, vol. 3(4), pages 319-339, December.
  • Handle: RePEc:spr:svcbiz:v:3:y:2009:i:4:p:319-339
    DOI: 10.1007/s11628-009-0073-7

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    References listed on IDEAS

    1. Véronique Ambrosini, 2001. "Tacit Knowledge: Some Suggestions for Operationalization," Journal of Management Studies, Wiley Blackwell, vol. 38(6), pages 811-829, September.
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    4. Klaus Gugler & Ralph Siebert, 2007. "Market Power versus Efficiency Effects of Mergers and Research Joint Ventures: Evidence from the Semiconductor Industry," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 645-659, November.
    5. S.A. Lippman & R.P. Rumelt, 1982. "Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 418-438, Autumn.
    6. Margaret A. Peteraf & Jay B. Barney, 2003. "Unraveling the resource-based tangle," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(4), pages 309-323.
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    Cited by:

    1. Max Finne & Saara Brax & Jan Holmström, 2013. "Reversed servitization paths: a case analysis of two manufacturers," Service Business, Springer;Pan-Pacific Business Association, vol. 7(4), pages 513-537, December.
    2. Zélia Serrasqueiro & Manuel Armada & Paulo Nunes, 2011. "Pecking Order Theory versus Trade-Off Theory: are service SMEs’ capital structure decisions different?," Service Business, Springer;Pan-Pacific Business Association, vol. 5(4), pages 381-409, December.
    3. Feng-Jyh Lin & Yi-Hsin Lin, 2012. "The determinants of successful R&D consortia: government strategy for the servitization of manufacturing," Service Business, Springer;Pan-Pacific Business Association, vol. 6(4), pages 489-502, December.
    4. Yuanqiong He & Hongyi Sun & Kin Lai & Yun Chen, 2015. "Organizational empowerment and service strategy in manufacturing," Service Business, Springer;Pan-Pacific Business Association, vol. 9(3), pages 445-462, September.
    5. David Wang & Tiffany Yu & Fang-Ru Ye, 2012. "The value relevance of brand equity in the financial services industry: an empirical analysis using quantile regression," Service Business, Springer;Pan-Pacific Business Association, vol. 6(4), pages 459-471, December.
    6. Rafael Cáceres & Joaquin Guzmán, 2015. "Seeking an innovation structure common to both manufacturing and services," Service Business, Springer;Pan-Pacific Business Association, vol. 9(3), pages 361-379, September.


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