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Our economies are rapidly evolving toward being primarily service-driven, with information and communication as fundamental drivers for the service deployment. Strategic choices are increasingly driven by other parameters than the traditional goods-driven industrial type of economies. In this paper, the major drivers for making strategic choices in a competitive service economy are examined. It is shown how the competition in services based on information and communication technology (ICT) is competence-based. Competition aims at bringing additional value through services, but may also deploy specific techniques to stop value from leaking in particular business processes. Value creation and prevention of value leaks cannot just rely on the traditional material-based techniques, which are grounded in the strong tangible nature of the traditional economies. Today ICT-based services involve creative combinations of technologies, resources, and assets to answer as well as anticipate the growing demand for flexible solutions that create sustained added value. In this paper, the particular role of imperfections in service systems is explored, extending the well-known theories of information imperfections. Imperfections are not always solved but are sometimes even maintained in favor of sustained competitive advantage. Various ways to realize service rent are discussed with extensive examples. The concluding part of the paper points to some crucial service configuration issues, including the need for a sufficient degree of corporate-wide standardized service components and interfaces to address the growing demand for agility in competence-driven markets.

Purpose – The aim is to introduce a sociological perspective on resource integration and value co-creation into service research using a service systems approach.

Methodology/approach – Conceptual and a case study of the service system a Telecom Equipment and Service Provider is embedded in is reported.

Findings – The service practice of the service system is framed by social structures of signification, legitimation, and domination. However, the practice is also independent of the structures since it is embedded in and shapes the structural realm.

Research implications and limitations – Drawing on structuration and practice theory, the chapter offers a new framework describing how social and service structures and practices can inform and reveal mechanisms of service system dynamics. Based on the framework, three propositions are developed focusing on the mechanisms of resource integration and value co-creation. The implications need to be generalized in future research by studying other empirical contexts.

Practical implications – The chapter provides some tentative guidelines on how organizations can design service systems that enable and support customers and other actors in their resource integration and value co-creation processes by paying attention to social structures and forces and not only resources as such.

Originality – The chapter explicates how social structures have implications for value co-creation and resource integration in service system. It makes systematic use of structuration and practice theory to understand the social dimensions of service systems. A distinction between intended and realized resource integration is made.

As we have discussed, recognition of the specialized needs of children and adolescents has taken place late in many domains. The same could be said with regard to the mental health services research enterprise. Kimberly Hoagwood, a prominent child mental health services researcher and for many years the program officer overseeing the National Institute of Mental Health's services research portfolio in the area of child mental health services research, recently observed that research in this area has lagged behind that for adults by roughly 10 years (Hoagwood, 2005). Indeed, as late as 1999, Burns was calling for the development of a services research agenda for youth with serious emotional disturbances (Burns, 1999).

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.

The study here responds to the view that the crucial problem in strategic management (research) is firm heterogeneity – why firms adopt different strategies and structures, why heterogeneity persists, and why competitors perform differently. The present study applies complexity theory tenets and a “neo-configurational perspective” of Misangyi et al. (2016) in proposing complex antecedent conditions affecting complex outcome conditions. Rather than examining variable directional relationships using null hypotheses statistical tests, the study examines case-based conditions using somewhat precise outcome tests (SPOT). The complex outcome conditions include firms with high financial performances in declining markets and firms with low financial performances in growing markets – the study focuses on seemingly paradoxical outcomes. The study here examines firm strategies and outcomes for separate samples of cross-sectional data of manufacturing firms with headquarters in one of two nations: Finland (n = 820) and Hungary (n = 300). The study includes examining the predictive validities of the models. The study contributes conceptual advances of complex firm orientation configurations and complex firm performance capabilities configurations as mediating conditions between firmographics, firm resources, and the two final complex outcome conditions (high performance in declining markets and low performance in growing markets). The study contributes by showing how fuzzy-logic computing with words (Zadeh, 1966) advances strategic management research toward achieving requisite variety to overcome the theory-analytic mismatch pervasive currently in the discipline (Fiss, 2007, 2011) – thus, this study is a useful step toward solving the crucial problem of how to explain firm heterogeneity.

In this chapter, the authors argue that organizational controls are best depicted and studied as sets of control configurations. Concepts from extant control research streams describing basic control elements as well as ideal types of control systems are used to identify and classify control configurations. The authors present compositional distinctions among four control configurations using a decade-long case study of a start-up company. By displaying how specific control elements are simultaneously distinct and intertwined in this company, the authors reveal significant theoretical insights that can assist scholars in distinguishing between different configurational patterns and in comprehending dynamics present in holistic perspectives of control. The authors conclude by discussing how conceptualizing controls as configurations most accurately reflects both organizational and managerial practice in ways that can motivate the development of new theories and approaches to studying this key aspect of organizational design. Because control configurations inherently reflect interdisciplinary concerns, and because such configurations affect the attainment of strategic goals, this work provides findings and ideas that fit the interests of a broad audience.

This chapter aims to qualify Local Area as Smart Tourism Local Service Systems (S-TLSS), whose competitiveness and reputation depend on sharing strategies and processes of cohesion based on equifinality among/for stakeholder. The methodology envisages the integration of Service Science Management Engineering and Design (SSME+D) and the Viable Systems Approach (VSA). Thus it describes a S-TLSS in terms of local service system, whose viability requires a ‘smart governmentality’, able to guarantee the management of equity, sustainability and resilience. Referring to human resources coherent with value co-creation processes, S-TLSS implies T-shaped professionals: new kind of individuals who have proficiency in a specific field/discipline (deep professionality) and, at the same time, show capacity to understand and participate in complex projects/systems (broad professionality). Finally, the authors will show a practical application of the system attempting to enhance an Italian territory that is not very attractive to tourists and local residents.

Purpose – The purpose of this essay is to explore further the concept of value cocreation from a service-ecosystems view, by considering the importance of networks and the configuration of relationships and resources in markets.

Methodology/approach – We use a conceptual approach to extend a service-dominant (S-D) logic, ecosystems view of value cocreation by drawing on the literature regarding networks in marketing and related research.

Findings – A service-ecosystems approach to cocreating value-in-context is proposed, which points toward networks as mediating factors in value cocreation because they influence the ability to access, adapt, and integrate resources by establishing exchange relationships and shaping the social contexts through which value is experienced.

Research implications – This research suggests that value cocreation is a complex and multidimensional process that is best studied in the context of dynamic networks or ecosystems of service exchange.

Practical implications – This research suggests that networks mediate value cocreation, and thus, firms should consider the configurations of relationships and resources to develop more compelling value propositions.

Social implications – This research draws on the idea that exchange relationships are embedded within society and suggests that processes of value cocreation not only draw on but also contribute to the social contexts that frame market exchange.

Originality/value of essay – This research extends the value cocreation and S-D logic literature by exploring the role of networks in service ecosystems. In this framework, networks are mediators of value cocreation because they enable access to resources and help to (re)shape social contexts through which value is derived.