Applying Service System Framework to Not-for-Profit Sector: A Case of Akhuwat Foundation

Abstract

Service is now considered as the basis of exchange and defined as "the use and application of competencies and knowledge for mutual benefits". In the current stream of development, service systems emerge as widely accepted, interesting and logical area to study the concepts related to service interactions. Service systems are dynamic entities which interact with each other and integrate their resources to co-create value. This paper characterizes Akhuwat Foundation Microfinance project as a Service System with the application of service system framework developed by Lyon and Tracy. The purpose of the study is to evaluate Akhuwat microfinance project to understand its service activities and to define business exchanges from the perspective of reciprocal benefits. Assuming the interprevitist assumptions, a qualitative approach was adopted and data was gathered through in-depth interviews with the employees of Akhuwat microfinance project. Data analysis revealed that Akhuwat microfinance is in fact, a true representation of a service system. Their objectives, processes, control and performances are service oriented. The main focus of transactions with donors, borrowers and other network partners is poverty alleviation, financial empowerment and a sustainable society. This paper motivates future researchers to apply the service system framework in other sectors, and characterize organizations that are, in its true essence service oriented.