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The purpose of this paper is to propose a classification for customer participation (CP) in services. Furthermore, it develops research propositions examining the moderating role of the proposed classification on the link between the magnitude of CP and service outcomes.

Building on the process-output framework, the paper explores the contingent nature of the effect of CP magnitude on service outcomes (satisfaction and efficiency).

The research propositions suggest that specific output enhances the positive effect of CP magnitude on satisfaction but also intensifies the negative effect of CP magnitude on efficiency; conversely, generic output diminishes the positive effect of CP magnitude on satisfaction but mitigates the negative effect of CP magnitude on efficiency. The effect of CP magnitude on satisfaction is stronger for a structured participation process than for an unstructured process; while the negative effect of CP magnitude on efficiency is stronger for an unstructured participation process than for a structured process. Further, process structure has an asymmetric enhancing effect on the negative link between CP magnitude and efficiency such that the enhancing effect of process structure is stronger for specific output than for generic output; likewise, process structure has an asymmetric enhancing effect on the positive link between CP magnitude and satisfaction such that the enhancing effect of structure is stronger for generic output than for specific output.

The research provides a conceptual approach to classify CP. Further research can focus on empirical validation as well as expanding the scope and variables examined.

The research points to guidelines to structure CP activities based on the nature of the participation process and the type of service output to achieve the competing goals of customer satisfaction and efficiency.

The proposed classification offers a new method to visualize CP in services. The framework is applicable to a wide variety of services, service contexts, and resources contributed by customers during their participation.

The aim of this paper is to find out how the productivity of public services can be measured in the operative level of organisations. In particular, the role of different output elements (tangible and intangible) is examined.

A qualitative research approach is used. The current knowledge of the issue is presented by examining literature on public service productivity, intellectual capital and performance measurement. In the empirical part, the findings of the literature review are applied and further examined in the context of two services of the City of Helsinki, Finland.

The paper identifies tangible and intangible output factors in two case services. It also illustrates how the factors can be measured in practice. The empirical examination suggests that the challenges in the operative level productivity measurement relate especially to defining measures. Identifying of different output factors is an easier task.

The study presents and applies a novel approach of designing productivity measures for public services. More empirical studies using the approach are called for.

The measurement approach presented here can be utilised as a basis for designing sophisticated productivity measures of public services.

A key challenge in examining public service productivity relates to the intangible nature of services. Despite the great potential and practical relevance of the topic there seems to be no understanding of how to capture this feature in order to design valid productivity measures. The paper adds to the current knowledge by describing the process of designing measures for disaggregated components of productivity, shares practical experiences related to the design process and highlights the main challenges.

This paper focuses on the World Bank's emerging experience with a promising application of performance-based contracts: Output-Based Aid (OBA) subsidies. OBA is the provision of subsidies for the delivery of and access to social or infrastructure services. Under OBA, subsidy payments are tied to measurable performing outputs, leaving the specific methods of achieving these outputs to the service provider's discretion. While creating better risk allocation, more value for users and contracting agencies, and fewer opportunities for corruption than traditional methods, OBA schemes raise new procurement issues that need to be reconciled in order to achieve optimal results. An issue this paper explores is the tension between the need that contracts be "expenditure-based" with the "performance-based" nature of OBA subsidies.

Existing measures of productivity were designed to measure productivity in industries in which both input and output are tangible standardised quantities. They are inadequate for productivity measurement of professional services, where intangible and specialised factors of production are in use. This paper seeks to address the difficulties associated with the measurement of productivity of professional service firms and to propose a more adequate measure of productivity in these industries. This measure is tested on a sample of Swedish management consulting firms, and is assessed in relation to several performance indicators of these firms. The findings illustrate the inadequacy of the manufacturing‐based measurement procedures and demonstrate that a measure which acknowledges the unique characteristics of professional services correlates better with firms’ performance. As this field of research is in its infancy, these findings are only suggested as indications for direction in which future research is needed.

Although research attention has been given to the modelling process for simultaneous demand‐output management in manufacturing systems, little interest has been demonstrated in service organisations despite the fact that such organisations face unique conditions that further complicate the demand‐output management issue. In response to this lack of emphasis, we review the relevant research from both marketing and operations management and present a cost‐effectiveness model for balancing demand and service output.

This paper aims to investigate the micro‐level (managerial) measurement of service productivity in the context of public services, in particular, the role of different output elements.

Current knowledge on the issue is summarised based on the existing literature on service productivity and public sector performance. Measurement challenges and potential solutions are studied in four different services of the city of Helsinki, Finland.

The case study demonstrates that complex service outputs can be divided into components (both tangible and intangible) that can be utilised in designing more sophisticated productivity measures. The findings add to the existing understanding about issues related to public service output definition.

This study provides knowledge to support the application of a disaggregated approach to service productivity measurement. However, more research is needed in order to fully utilise this approach in practice.

The findings of the study may help managers identify service output components in public/social services. This can be used as a starting point for developing novel productivity measures.

A key challenge in examining service productivity relates to the intangible nature of services; it is especially difficult to define the actual outputs produced. The challenges seem to be most severe in the public sector due to its specific characteristics. Many of the existing studies examine the issue at macro level. In large multi‐service organisations there is a managerial need to gather micro‐level information on productivity. This paper demonstrates how a disaggregated approach presented in the earlier literature can be operationalised. The approach yields a detailed understanding of different output components, which is a necessary step in designing relevant productivity measures for operative‐level management.

This paper aims to examine the relationship between the industrial and the service sector outputs at the aggregate level and for different sub-services in India and also tries to find out whether the relationship is changing over time.

This paper studies a panel of 16 major Indian states in India over the period 1980-2011. Using an econometric analysis, it proceeds to estimate the increase in inter-linkage between the output of the service sector and the output of the industrial sector. This study considers a variable coefficient model where the output elasticity of the service sector with respect to the output of the industrial sector changes with time. The changing element here is considered to be the result of the changing structure of production within these industries.

It has been observed that the output of the services sector at the aggregate level and the output of the industrial sector are highly correlated, and demand generated for services output from the industrial sector over the period 1993-2011 is mostly due to the changing structure of production within these sectors.

This paper takes the initiative to estimate the increase in inter-linkage between the output of the service sector and the output of the industrial sector resulting from the changing structure of production within the industrial and the service sectors.

Considers the need for industrial producers (intermediaries) to be flexible and adapt their channel, e.g. commercial and consumption, strategies to the changing demands of producers and end users. Summarizes that the differing outputs demanded by the above – e.g. steady flow of consumption and stock inventory for the former, product variety and waiting time for the latter – should not conflict even though end users dictate the intermediaries priorities. Concludes that intermediaries should position themselves effectively between producers and end users and differentiate in order to retain their niche and avoid being taken over, the above being capable of performing many of their functions themselves.

The concept of service provision through output specifications rather than input‐based specifications is currently occupying directors and managers within the service. While the debate continues, little research has been undertaken to find out the current spread of the new output specification and how it operates in NHS Trusts compared to the longer established input‐based service specification. This paper presents a study of around one‐third of the Trusts in England and provides a comparative analysis of the different specifications in use, whether in‐house or outsourced providers deliver the services to these Trusts, and how these providers are assessed for satisfactory performance. In addition, through a series of structured discussion forums, users’ requirements for the development of standardized performance metrics are established for the future management of output specifications.

Recognizing the heterogeneity of services, this paper aims to clarify the characteristics of forward and the corresponding reverse supply chains of different services.

The paper develops a two-dimensional typology matrix, representing four main clusters of services according to the degree of input standardization and the degree of output tangibility. Based on this matrix, this paper develops a typology and parsimonious conceptual models illustrating the characteristics of forward and the corresponding reverse supply chains of each cluster of services.

The four main clusters of service supply chains have different characteristics. This provides the basis for the identification, presentation and explanation of the different characteristics of their corresponding reverse service supply chains.

The findings of this research can help future researchers to analyse, map and model forward and reverse service supply chains, and to identify potential research gaps in the area.

The findings of the research can help managers of service firms to gain better visibility of their forward and reverse supply chains, and refine their business models to help extend their reverse/closed-loop activities. Furthermore, the findings can help managers to better optimize their service operations to reduce service gaps and potentially secure new value-adding opportunities.

This paper is the first, to the authors ' knowledge, to conceptualize the basic structure of the forward and reverse service supply chains while dealing with the high level of heterogeneity of services.