The dynamics of service productivity and value creation: a service life cycle perspective

Due to the complexity of service productivity, the extant research on the topic is scarce. Hence, there is a need for additional studies on the interdependencies of service productivity and value co-creation as well as on the development of a service life cycle model and its impact on service productivity. This paper addresses these research gaps by analysing how services should be engineered and managed to increase service productivity. It also addresses the interaction effects during the service delivery phase and the co-creation of value between service providers and customers. Case studies which were conducted in machinery industry settings evidence the applicability of the conceptual service life cycle model and demonstrate how to measure, manage and optimise service productivity in dynamic systems. The findings show that it is crucial to analyse value co-creation throughout the service process in order to increase and measure service productivity. It is also essential to consider the characteristics of the service life cycle on service productivity. Finally, implications for service companies are discussed.