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The productivity challenge in services: measurement and strategic perspectives

The concept of productivity is at the heart of economic theory, management science and operational management of firms and organizations. Despite the theoretical and operational importance of this concept, in recent years, its absolutism has been challenged. Services are often at the heart of this critical debate. Both conceptually and methodologically, services are indeed a major challenge to the concept of productivity. The objective of this paper is to review issues raised by services and their relationships with productivity, from two different but related perspectives: (1) a theoretical and methodological perspective focused on the problems involved in defining and measuring productivity, and (2) a strategic perspective focused on identifying generic productivity and performance strategies in service firms and organizations.