Value creation in the service economy

Abstract

This book consists of five chapters. The first one deals with the historic perspective of services within the economic literature. It introduces, primarily, the classical approach, represented by the writings and observations made by Adam Smith and his followers, and finishes with neo-industrial concepts, which are still in the stage of development to the present day. In chapter 2 the characteristics of services and the development of the service economy are described. The interrelations between manufacturing and services are also highlighted within this chapter. Chapter 3 discusses services available on international markets, i.e. in trade and foreign investments, which are often the only way of non-tradable services being transferred overseas. This chapter is complemented later by an explanation of the offshoring phenomenon in chapter 4. Issues relating to the motives and outcomes of this process, as well as the sectors vulnerable to them are presented in detail. Finally, chapter 5 deals with the new trends in management with regard to services. The concepts of value based management, service-dominant logic and value creation are also discussed.