A Study on the Measurement of Service Productivity

Abstract

Until now, there exists no universal approach for measuring the productivity of services. Various factors have different impacts on service productivity, ranging from the relationship between service providers and customers to service quality. Measuring performance in services has proven difficult largely due to the fact that production and sales occur simultaneously and because the services provided are heterogeneous. The purpose of this paper is to analyse, evaluate, and integrate the results of prior research on service productivity by developing measurement models. This paper shows that the simultaneity and heterogeneity of services need not detract from the usefulness of performance indicators. A discussion summarizing desirable and undesirable components of service efficiency and productivity indicators is included, measurement models are proposed, and then applies these models for a logistics service sector. Using this new approach on simultaneity and heterogeneity, services will be able to better track and improve performance in logistics industry. As our final result, this paper develops an agenda for further research on the productivity of logistics services.