Measuring the economic value of special libraries

Abstract

PurposeThis study aims to present a new approach to measuring the economic value of special libraries, including certain time‐saving effects that the contingent valuation method application cannot exclusively prove.Design/methodology/approachA cost‐benefit analysis is used as a tool to determine whether the benefits of special libraries outweigh the cost incurred in providing the services. The benefits of such libraries are based on estimates of how much the user is willing to pay for the service, as well as the cost of time saved as a result of his contact with library services. A case study was conducted to show how special libraries could apply the proposed model to their library setting to measure the value of the library's services.FindingsAccording to the case study involving the KDI School Library, the economic value of its library services measured in terms of a B/C ratio was 1.97, serving as strong justification for the library's existence.Originality/valueThis study is more specific and accurate than previous studies in that it enables an individual analysis for each service special libraries offer and focuses on the types of benefit derived. It is hoped that the model will help analyze the strength of each library service as well as the total economic value of the library.

Demonstrating the financial impact of clinical libraries: a systematic review

“…Contingent Valuation : Chung used this method to measure the economic value of the library and we see similar measures throughout the scientific literature in particular in ‘value of information’ (VoI) studies, which compare costs of acquiring information with the potential costs of working with ‘imperfect’ information. The formula in the VoI studies is complex and, by its nature, is based on probability.…”

“…Of the 11 papers in the final selection, only six tested or applied the measurement tool they describe to their own setting. These papers were therefore further assessed for risk of bias in their application or reporting.…”

“…In the McGowan papers, there is no account of whether their findings were viewed as acceptable or justified by their stakeholders. Nor do Bodycomb, Chung, Esparza and Banks indicate the outcome and/or acceptability of any of the tools used in their respective studies. Anecdotal evidence cited in Kelly suggests that the NN/LM (National Network of Libraries of Medicine) Valuing Library Services adapted calculator has attained some acceptability when presented to management.…”

Are User Surveys Fit for Purpose? A Case Study on the Use of a Contingent Valuation Survey at Middle Temple Library

“…A description of the service is presented and respondents are asked to state how much that service is valued in a hypothetical market. This is usually assessed in two ways – how much the respondent is willing to pay (WTP) to keep the service, and how much the respondent is willing to accept in compensation (WTA) were the service to be discontinued or negatively altered in some way (Ventura, 2005; Aabo, 2005; Chung, 2007).…”

Cost-Benefit Analysis of Journals Subscription at Nehru Library, Ccshau, Hisar, Haryana

“…The Contingent Valuation Method (CVM) is used to measure the perceived value of various services offered by the library by assessing the user's "willingness to pay" (WTP) and "willingness to accept" (WTA) alternatives to no library services provided. (Chung, 2007) A panel of economic experts set up by the U.S. National Oceanic and Atmospheric Administration (NOAA) examined the technique and supported its reliability (Arrow et al, 1993). CV technique is supported by the Nobel Prize-winning economists Kenneth Arrow and Robert Solow.…”