Service value networks: performance, value and the delivery of services

Services have been investigated from several approaches. In 2003, the World Trade Organization stated services accounted for 69% of the economic output of OECD countries and in low income countries, services accounted for an average of nearly 50% of GDP. Services encapsulate over 65% of global business (Czinkota et al., 2005), but many gaps in the services knowledge base remain. This research adopts an integrated approach to investigating on-line services. The notion of the 'service value chain' is developed through to a new business model. A service delivery mechanism is developed that reconciles two conflicting but concurrent requirements from clients - to leverage economies of scale, and to deliver solutions, specific to the needs of the customer (France et al., 2002). The service value chain houses bi-directional service supply chains (Sampson, 2000). A service value network may be considered as an integrated set of supply chains, working in networked harmony with customer driven demand chains to deliver customer value. It incorporates interlinked partnering companies (positioned along these chains), that team together to maximize their ultimate combined success and profitability (Chen & Paulraj, 2004). Thus a service value network is defined. The service value network is further divided into the physical and virtual service value network components. The impediments to the development of the service value network are investigated. The virtual, or web based, information aspects (as distinct from the tangible physical aspect) of the business's pure services value network is defined in terms of its website service encounter 'touch-point' with the customer. The points which may impede the delivery of the service value network are analysed. This research develops key strategic business performance and value dimensions that influence the effective management of the virtual service value network encounter with the customer.

Journal of digital business

Journal of Digital Business

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1555-5399

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1

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