Service productivity as mutual learning

Purpose – The purpose of this paper is to analyse the mutual learning implications for service productivity of the characteristics of service and service production. Design/methodology/approach – This is a conceptual paper. The starting point is, first of all, that productivity as a management concept should help a firm to manage its economic profit, and secondly, that service organizations are open systems, where the customers participate as co-producers and are exposed to the firm’s production resources and processes. Unlike in manufacturing, to understand productivity in service organizations as a means of managing profit, cost effects and revenue effects of changes in the productions system cannot be separated. Due to the interaction between customers and the firm’s resources during service production, dialogical collaboration between them develops. This enables mutual learning. Findings – Given the social dynamics in service production processes, four learning processes that influence service product...