The Growth of Producer Services Industries: Sorting Through the Externalization Debate

Goe, W. Richard

doi:10.1111/j.1468-2257.1991.tb00565.x

Cited by 51 publications

(18 citation statements)

References 33 publications

(55 reference statements)

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“…Rather than viewing cost considerations as the most important factor for determining the degree of internalisation and externalisation (Goe, 1991;Perry, 1992), the present study supports the view that the most important driver is a combination of non-cost-driven factors (Beyers and Lindahl, 1996;Coffey and Drolet, 1996). However, it is not possible to discern a unanimous view of how specific types of services should be organised.…”

Section: Research Implicationssupporting

confidence: 73%

Internalisation or externalisation?

Kowalkowski

Kindström

Witell

2011

Managing Service Quality: An International Journal

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PurposeManufacturing firms primarily organise service provision internally, externally or through a hybrid arrangement. This paper aims to analyse how firm‐, offering‐, and market‐specific factors influence the way in which a firm organises its service provision. In addition, the paper analyses the specific challenges that each organisational arrangement presents for a firm.Design/methodology/approachThe study employed a qualitative, multiple‐case research design that involved seven manufacturing firms with different organisational arrangements for service provision.FindingsContrary to certain explicit assumptions, few firms organise for service provision solely through an in‐house organisation. Analysis of firms in a wide variety of industries has shown that the organisational arrangements (internal, external or hybrid configuration) are contingent on factors such as market strategy, customer relationships, product‐service linkages, internal competences and market channel characteristics.Research limitations/implicationsThe paper is an initial attempt to understand the strategic choices that firms make in terms of inter‐organisational arrangements for service provision. The research should be extended by way of a cross‐sectional survey in order to test and further validate the importance of the determinants of the organisational arrangements for service provision.Originality/valueThe paper contributes to the service marketing and management literature by examining factors that determine whether firms organise for service provision internally, externally or through a hybrid configuration. Prior research has not explicitly addressed this issue.

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Section: Research Implicationssupporting

confidence: 73%

Internalisation or externalisation?

Kowalkowski

Kindström

Witell

2011

Managing Service Quality: An International Journal

View full text Add to dashboard Cite

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“…Because an insufficient number of firms identified themselves as having a cost leadership or cost focus orientation, these categories were not evaluated. This evidence coincides with studies from a demand perspective that have demonstrated that cost-oriented factors are not primary drivers of producer services demand but are instead superseded by non-cost factors related to an increasing need for specialized expertise (e.g., Beyers and Lindahl 1996;Coffey and Bailly 1992;Goe 1991;Perry 1992).…”

Section: Competitive Advantage In the Producer Servicessupporting

confidence: 87%

The Creation of Competitive Advantage by Producer Service Establishments*

Lindahl

Beyers

1999

Economic Geography

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In this paper we focus on how competitive advantage is constructed by producer service businesses, how it varies among establishments with different characteristics, and how it affects establishment performance. Sources of competitive advantage stem from characteristics such as quality, price, creativity and innovation, flexibility, timeliness of delivery, and scope of services offered. We present a detailed evaluation of the competitive advantage model developed by Porter (1990) and review applications of this model to the producer services. We find this model to be partially successful in distinguishing between superior and inferior performance by producer service businesses, with important differences observed across age, organizational type, and size of business. We develop an expanded model of factors related to competitive advantage and performance, which includes not only factors contained in the Porter model, but dimensions particular to the information‐oriented producer services, such as creativity, geographic proximity, R&D capabilities, and adaptability to client needs.

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“…Unbundling is explained largely by market uncertainty and increased competition, which force firms to subcontract their services in order to decrease their economic burdens in cases of crisis (Goe, 1991;Daniels, 1985;Carlsson, 1996). Moreover, technology plays an important role in the unbundling process.…”

Section: Definitionsmentioning

confidence: 98%

Manufacturing In Decline? A Matter Of Definition

Çetindamar¹,

Carlsson²

1999

Economics of Innovation and New Technology

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This paper offers a new approach to the definition of manufacturing activities, placing them in a broader framework to capture the dynamics of manufacturing in the economy. After discussing why in many cases it may bc appropriate to consider producer services and tnanttfacturing industries together, the paper analyzes the development of manufacturing and producer service industries in the United States. We examine the factors leading to the growth of producer services, concluding that unbundling, the shift of some activities (such as legal, accounting, and data processing services) from manufacturing to producer services industries, is an important explanation for this growth. Finally, we discuss the relationship between manufacturing and producer services. Our analysis, based on a broader definition of manufacturing, shows that over the last two decades the U.S. manufacturing base has declined only slightly rather than radically as suggested in many studies.Manufacturing, Producer services, U. S. economy JEL Classification: L0, L6,

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The Growth of Producer Services Industries: Sorting Through the Externalization Debate

Cited by 51 publications

References 33 publications

Internalisation or externalisation?

Internalisation or externalisation?

The Creation of Competitive Advantage by Producer Service Establishments*

Manufacturing In Decline? A Matter Of Definition

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