Abstract for: Linking Innovation and Service Productivity - An analysis of interactive effects in knowledge-intensive business services
The productivity of services has recently become the subject of intensive research. While most contributions here have focused on developing measurement concepts, so far little is known about the dynamics of productivity in service companies. Because productivity tends to increase if the service delivery process is enhanced and improved, there seems to be a link between incremental service innovations and the productivity of services. Therefore, this article analyzes the interaction of innovations and productivity over time in knowledge-intensive business services (kibs). A simple system dynamics model was constructed to examine these dynamics and interactions over the life cycle of an exemplary knowledge-intensive business service offer. First the system structure is developed using literature analysis. Second, several simulation runs and experiments are conducted, to obtain a deeper understanding of the interactions of service innovations and productivity. The paper closes with findings and conclusions.