Capturing value in the service economy

Wirtz, J. and Ehret, M. ORCID: 0000-0002-2478-8889, 2017. Capturing value in the service economy. Journal of Service Management Research, 1 (1), pp. 22-38. ISSN 2511-8676

[img]
Preview
Text
PubSub9288_Ehret.pdf - Published version

Download (366kB) | Preview

Abstract

The benefits of specialization have been driving the rise of the service economy and pushing capability frontiers and economic growth. In service economies, almost any activity, asset, and skill can be bought on competitive markets, making it harder to build competitive advantage on those inputs. Therefore, firms have to carefully decide what to own in order to capture value, and they need to prioritize investments in those assets while outsourcing almost everything else. Service businesses capture value by connecting resource markets with service markets, and we identified three types of assets that allow a firm to connect markets and capture value in the process. They are: (1) resource-based assets shaping capabilities and capacities of services; (2) platform-based assets connecting resource owners with users,allowing to generate network effects, critical mass, volume and/or liquidity; and (3) market-based assets providing the interface for interaction with customers. We propose further three key dimensions that shape each service-asset type: Physical capital, intellectual capital and social capital including service climate as a framework for a typology of service assets. We identify further two domains of service management that allow firms to capture value: (1) business models for designing the architecture and "Gestalt" of value creation; and (2) the effective management of an integrated web of processes and activities. We discuss implications for management and further research.

Item Type: Journal article
Publication Title: Journal of Service Management Research
Creators: Wirtz, J. and Ehret, M.
Publisher: Verlag C.H. Beck
Date: 2017
Volume: 1
Number: 1
ISSN: 2511-8676
Identifiers:
NumberType
10.15358/2511-8676-2017-1-22DOI
Divisions: Schools > Nottingham Business School
Depositing User: Linda Sullivan
Date Added: 07 Dec 2017 16:24
Last Modified: 07 Dec 2017 16:24
URI: http://irep.ntu.ac.uk/id/eprint/32170

Actions (login required)

Edit View Edit View

Views

Views per month over past year

Downloads

Downloads per month over past year