Abstract
Services [Service sectors include financial services (banking, insurance, securities, fund management), professional services (accounting, legal, engineering, architecture), health services, education services, environmental services, energy services, logistics, tourism, information technology, telecommunications, transport, distribution, standards and conformance, audio-visual, media, entertainment, cultural and other business services (Australian Services Round Table Memorandum of Understanding with Australia 2009)] are becoming increasingly important to the Australian economy and that of other developed and developing economies. Yet, evidence shows that as production moves from agriculture and manufacturing to service- and knowledge-based economies, productivity growth rates have declined. To date there are no clear indicators for quantifying productivity for service and network based firms. This raises the question: How can productivity be measured for service and network based firms? This chapter presents a systems view of productivity and is organized into five sections: Overview of productivity; Current measures of productivity using KLEMS; Existing Service Productivity Models; Service Enterprise Productivity in Action (SEPIA) model, and New Measures for Service Enterprise Productivity. The key contribution of this chapter involves the operationalisation of the SEPIA model and an illustration of the model through the use of an industry example.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Agarwal, R., & Selen, W. (2005). The service cubicle: A new service taxonomy. Annual EurOAM conference. Budapest, Hungary: European Operations Management Society.
Agarwal, R., & Selen, W. (2009). Dynamic capability building in service value networks for achieving service innovation. Decision Sciences Institute, 40(3), 431–471.
Agarwal, R., & Selen, W. (2011). Multi-dimensional nature of service innovation. Operationalisation of the elevated service offerings construct in collaborative service organisations. International Journal of Operations and Production Management, 31(11), 1164–1192.
Ahmad, N., Lequiller, F., Pascal, M., Pilat, D., Schreyer, P., & Wolfl, A. (2003). Comparing labour productivity growth in the OECD area: The role of measurement. Paris, France: OECD.
Arbdi, F., Shavarini, S., & Hoseini, S. (2006). Glean lean: How to use lean approaches in service industries. Journal of Service Research, 6, 191–206.
Australian Qualifications Framework. (2013). Australian Qualifications Framework Council, South Australia.
Basole, R., & Rouse, W. (2008). Complexity of service value networks: Conceptualisation and empirical investigation. IBM Systems Journal, 47(1), 53–70.
Boulding, K. (1956). General systems theory - The skeleton of science. Management Science, 2(3), 197–211.
Boyer, K., Hallowell, R., & Roth, A. (2002). E-services: Operating strategy - a case study and method for analyzing operational benefits. Journal of Operations Management, 20, 175–188.
Boyer, K., & Verma, R. (Eds.). (2010). Operations & supply chain management for the 21st century (1st ed.). Mason, WI: South-Western Cengage Learning.
Camus, D. (2007). The ONS productivity handbook: A statistical overview and guide. Hampshire: Office of National Statistics (UK).
Coelli, T. J., Rao Prasada, D., O’Donnell, C. J., & Battese, G. (2005). An introduction to efficiency and productivity analysis (2nd ed.). New York: Springer.
Cook, W., & Zhu, J. (2008). Data envelopment analysis modeling operational processes and measuring productivity. Worcester: Worchester Polytechnic Institute.
Crepon, B., Duget, E., & Mairesse, J. (1998). Research, innovation and productivity: An econometric analysis at the firm level. Economics of Innovation and New Technology, 7(2), 115–158.
De Myer, A., & Vereecke, A. (1996). The product process matrix: An empirical test on the friend industrial manufacturing industries. Fontainbleau: INSTEAD.
Dolman, B., & Gruen, D. (2012, July). Productivity and structural change. Paper presented to the 41st Australian Conference of Economists, Melbourne, Australia.
Drucker, P. (1993). Postcapitalist society. New York: HerperCollins Publishers.
Drucker, P. F. (1999). Knowledge worker productivity: The biggest challenge. California Management Review, 41(2), 79–94.
Fischer, F., & Sirianni, C. (Eds.). (1994). Case studies in organisation and bureaucracy. Temple: Temple University Press.
Frei, F. (2006). Customer-introduced variability in service operations. Harvard Business School, 9-606-063, 1–18.
Gadrey, J., & Gallouj, F. (2002). Productivity, innovation and knowledge services. Cheltenham: Edward Elgar.
Gambin, L., Green, A. E., & Hogarth, T. (2009). Exploring the links between skills and productivity. Coventry: University if Warwick, Institute for Employment Research.
Gattorna, J. (2010). Dynamic supply chains - delivering value through people (2nd ed.). Harlow: Pearson.
Gibbons, J. (2007). Employee engagement: A review of current research and its implications. New York: The Conference Board Inc.
Giraleas, D., Emrouznejad, A., & Thanassoulis, E. (2012). Productivity change using growth accounting and frontier-based approaches – Evidence from a Monte Carlo analysis. European Journal of Operational Research, 222, 673–683.
Gomez, R., & Hernandez de Cos, P. (2006). The importance of being mature. The effects of demographic maturity in global per capita GDP. Frankfurt: European Central Bank.
Green, R., & Agarwal, R. (2009). In Department of Innovation, Science and Research (Ed.), Management matters in Australia: Just how productive are we?. Canberra: ACT.
Gretton, P., & Fisher, B. (1997). Productivity growth and Australian manufacturing industry. Industry Commission Staff Research Paper AGPS. Canberra: ACT Australia.
Gronroos, C., & Ojasalo, K. (2004). Service productivity. Towards a conceptualization of the transformation of inputs into economic results in services. Journal of Business Research, 57(4), 414–423.
Hackman, J. R., & Lawler, E. (1971). Employee reactions to job characteristics. Journal of Applied Psychology, 55, 259–286.
Hackman, J. R., & Oldham, G. R. (1976). Motivation through he design of work: Test of a theory. Organisational Behaviour and Human Performance, 16, 250–279.
Hackman, J. R., & Oldham, G. R. (1980). Work redesign. Reading, MA: Addison Wesley.
Hayakawa, K., Machikita, T., & Kimura, F. (2010). Globalization and productivity: A survey of firm level analysis. Chiba: Institute of Developing Economies.
Hayes, R., & Wheelright, S. (1979). Link manufacturing process and product life cycle. Harvard Business Review, (January–February), 133.
Heskett, J., Loveman, T., Sasser, E., & Schlesinger, L. (1994). Putting the service profit chain to work. Harvard Business Review, 164–174.
Judd, R. (1964). The case for redefining services. Journal of Marketing, 28, 58–59.
Kahn, W. (1990). Psychological conditions of personal engagement and disengagement at work. The Academy of Management Journal, 3(4), 692–724.
Kalakota, R., & Robinson, M. (1998). E-business roadmap for success. New York: Addison Wesley.
Li, M., & Choi, T. (2009). Triads in service outsourcing: Bridge, bridge decay and bridge transfer. Journal of Supply Chain Management, 45(3), 27–39.
Lockwood, N. (2007). Leveraging employee engagement for competitive advantage. Society of Human Resource Management, 52, 1–12.
Lovelock, C. H., & Yip, G. S. (1996). Developing global strategies for service businesses. California Management Review, 38(2).
Lusch, R. F., Vargo, S. L., & Wessels, G. (2008). Toward a conceptual foundation for service science: Contributions from service dominant logic. IBM Systems Journal, 47(1), 1–14.
Macey, W., & Schneider, B. (2008). The meaning of employee engagement. Industrial and Organisational Psychology, 1, 3–20.
Maglio, P., & Spohrer, J. (2008). Fundamentals of service science. Journal of the Academy of Marketing Science, 36, 18–20.
McHugh, P., Merli, G., & Wheeler, G. (1995). Beyond business process reengineering. Chichester: Wiley.
McLuhan, M. (1964). Understanding media. New York: McGraw Hill.
Ng, I., Lei Guo, J., & Yip, N. (2008). Towards a benefits-based framework for understanding B2B services and its impact on contract and capability. Paper presented to the 10th International Research Seminar in Service Management, La Londe France, 27–30 May 2008.
Ng, I. C. L. (2008). The pricing and revenue management of services. London: Routledge.
Norman, R., & Ramirez, R. (1993a). From value chain to value constellations: Designing interactive strategy. Harvard Business Review (July-August), 65–77.
Norman, R., & Ramirez, R. (1993b). Strategy and the art of reinventing value. Harvard Business Economic Studies, 39–51.
Norman, R., & Ramirez, R. (1997). Do constellations supersede value chains? The Antidote, 28–32.
O’Mahony, M., & Timmer, M. (2009a). Output, input and productivity measures at an industry level: The EU KLEMS database. Economic Journal, 119(538), F374–F403.
O’Mahony, M., & Timmer, M. (2009b). Output input and productivity measures at the industry level: The EU KLEMS database. The Economic Journal, 119, 374–403.
Ospina, S., & Schiffbauer, M. (2006). Competition and firm productivity: Evidence from firm-level data, International Monetary Fund.
Pakes, A., & Griliches, Z. (Eds.). (1984). Patents and R&D at the firm level: A first look. Chicago: University of Chicago Press.
Parolini, C. (1999). The value net. Chichester: Wiley.
Pedersen, E., & Hunchie, M. (2011). Negotiating lean: The fluidity and solidity of new management technologies in the Danish public sector. International Journal of Public Sector Management, 24(5), 403–420.
Rathmell, J. (1974). Marketing in the service sector. Cambridge, MA: Winthrop.
Roth, A., & Menor, L. (2003). Insights into service operations management: A research agenda. Production and Operations Management, 12(2), 145–165.
Sampson, S. E., & Froehle, C. M. (2006). Foundations and implications of a proposed unified service theory. Production and Operations Management Society, 15(2), 329–343.
Sampson, S. (2010). Unified service theory: A paradigm for service science. In P. Maglio, A. Kieliszewski, & J. Spohrer (Eds.), Handbook of service science (pp. 107–132). New York: Springer.
Scerri, M. (2004). Be easy training program. Sydney: Blue Mountains Regional Tourism.
Scerri, M., & Agarwal, R. (2013). Evolution of production, transition to the value creation cube. In Driving the economy through innovation and entrepreneurship: Emerging agenda for technology management. Bangalore: Springer.
Schmenner, R. (1986). How can service businesses survive and prosper? Sloan Management Review, 27(3), 12–32.
Schmenner, R. (2004). Service businesses and productivity. Decision Sciences, 35(3), 333–347.
Schreyer, P. (2001). Measuring productivity: Measuring aggregate and industry level productivity growth (pp. 1–254). Paris: OECD.
Seijts, G., & Crim, D. (2006). What engages employees the most. The ten C’s of employee engagement. IVEY Business Journal, 1–5.
Servicing our Future. (2007). In Treasury (ed.) Australian Government, Canberra, ACT, pp. 1–136.
Shostack, G. (1987). Service position through structural change. Journal of Marketing, 51(1), 34–43.
Simon, H. (1996). The sciences of the artificial (3rd ed.). Cambridge, MA: MIT Press.
Solow, R. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(1), 65–94.
Spoher, J., & Maglio, P. P. (2006). The emergence of service science: Towards systematic service innovation. San Jose, CA: IBM Research Centre.
Stam, C. (2007). Knowledge productivity designing and testing a method to diagnose knowledge productivity and plan for enhancement, Universitet Twente.
Swank, C. (2003). The lean service machine. Harvard Business Review, 81(10), 123–129.
Tamkin, P. (2005). Measuring the contribution of skills to business performance - A summary for employers. Brighton, UK: Institute for Employment Studies.
Taylor, F. (1911). The principles of scientific management. New York: Harper & Brothers.
Timmer, M., O’Mahony, M., & van Ark, B. (2007). EU KLEMS growth and productivity accounts: An overview. International Productivity Monitor.
Toffler, A. (1981). Third wave. New York: Bantam Books.
Trist, E. (1981). The evolution of socio-technical systems. Perspectives on Organizational Design and Behaviour, pp. 1–69.
Van Landeghem, H., & Vanmaele, H. (2002). Robust planning: A new paradigm for demand chain planning. Journal of Operations Management, 20, 769–783.
Vargo, S. L., & Lusch, R. F. (2004). Evolving to a new dominant logic for marketing. Journal of Marketing, 68, 1–17.
Vargo, S. L., & Lusch, R. F. (2008). From goods to service(s): Divergences and convergences of logics. Industrial Marketing Management, pp. 1–6.
Vargo, S. L., & Lusch, R. F. (2011). Service dominant logic: Foundations of E-novation. In H. Patterson & D. Low (Eds.), E-novation for competitive advantage in collaborative globalization: Technologies for emerging e-business strategies (pp. 1–15). Hershey: Business Science Reference.
von Bertalanffy, L. (1968). General systems theory: Foundation, development, applications. New York: G. Braziller.
Walters, D., & Rainbird, M. (2007). Strategic operations management. Hampshire: Palgrave Macmillan.
Webster, E. (2004). Firms decisions to innovate and innovation routines. Economics of Innovation and New Technology, 13(8), 733–745.
Wilson, K. (2009). A survey of engaged employees. Columbia: University of Missouri.
Wolff, E. (1995). Technology and the demand for skills. New York: New York University.
Wolff, E. (2002). How Stagnant are Services? In J. Gadrey & G. Faiz (Eds.), Productivity, innovation and knowledge in services (pp. 3–25). Northampton, MA: Edward Elgar.
Zeithaml, V., Parasuraman, A., & Berry, L. (1985). Problems and strategies in service marketing. Journal of Marketing, 49(4), 33–46.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2014 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Scerri, M., Agarwal, R. (2014). Service Enterprise Productivity in Action (SEPIA). In: Emrouznejad, A., Cabanda, E. (eds) Managing Service Productivity. International Series in Operations Research & Management Science, vol 215. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-43437-6_6
Download citation
DOI: https://doi.org/10.1007/978-3-662-43437-6_6
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-662-43436-9
Online ISBN: 978-3-662-43437-6
eBook Packages: Business and EconomicsBusiness and Management (R0)