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Article
Publication date: 11 January 2018

Hossein Olya, Levent Altinay and Glauco De Vita

Using data from 104 countries over a six-year period (2009-2014), this study proposes a value-added predictor in service industries based on the eight indicators of the prosperity…

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Abstract

Purpose

Using data from 104 countries over a six-year period (2009-2014), this study proposes a value-added predictor in service industries based on the eight indicators of the prosperity index, namely economy, entrepreneurship and opportunity, governance, education, health, safety and security, personal freedom and social capital.

Design/methodology/approach

The fuzzy-set qualitative comparative analysis (fsQCA) and complexity theory, a relatively novel approach for developing and testing the conceptual model, are used for asymmetric modelling of value added in service industries, and the predictive validity of proposed configural model is tested.

Findings

Apart from advancing method and theory, this study simulates causal conditions (i.e. recipes) leading to both high and low scores of the value added of services. The configural conditions indicating a high/low level of value added in service industries can be used as a guiding strategy for marketers, investors and policy makers.

Originality/value

An analysis of worldwide data provides complex models demonstrating both how to regulate country conditions to achieve a high value-added score and select a foreign country for investment that offers a high level of value-added service.

Details

Journal of Services Marketing, vol. 32 no. 3
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 7 June 2018

Shuyun Wang

The purpose of this paper is to elaborate value-added service of cold chain logistics between China and Korea. The covering strategy for developing the cold chain value-added

1171

Abstract

Purpose

The purpose of this paper is to elaborate value-added service of cold chain logistics between China and Korea. The covering strategy for developing the cold chain value-added service between the two countries is proposed.

Design/methodology/approach

The author expounds the driving power for developing cold chain logistics between the two countries basing on the trade data of agricultural exports and imports, the tariff liberalization agreement of China–Korea FTA and the short distance between the two countries. It analyzes the value-added service of cold chain logistics with exemplary cases from four aspects (customized service, integrated service, consultation/solution and strategic alliance service), and its value-added mechanism for the enhancement of core competences of the entire cold chain. Then, by considering the drawbacks of the current cold chain logistics practices, between the two countries, the author proposes certain measures for fostering the cold chain value-added services between them.

Findings

There are apparent mutual benefits in developing cold chain value-added service between the two countries, but there exists some shortcomings which impede the sound development of the cold chain logistics, such as low circulation rate and insufficient cold chain facility in China, shortage of integrated and compatible information platform between the two countries, few integrated cold chain service and strategic alliance service and occurrence of some trade frictions.

Originality/value

The enforcement of China–Korea FTA will greatly reduce the tariff and increase the import and export volumes between the two countries; with the proximity between them, development of cold chain logistics between the two countries holds tremendous potential. This paper thoroughly discusses the mechanism of the value-added service of the cold chain logistics, and brings into focus the development of the value-added service in the two countries.

Details

Journal of Korea Trade, vol. 22 no. 3
Type: Research Article
ISSN: 1229-828X

Keywords

Article
Publication date: 12 June 2024

Xueke Du, Wenli Li, Li Cui, Yibo Jia and Lin Wu

In response to the intense competition in the platform economy, e-commerce platforms are actively introducing value-added services to maintain their competitiveness. However, how…

Abstract

Purpose

In response to the intense competition in the platform economy, e-commerce platforms are actively introducing value-added services to maintain their competitiveness. However, how effective these value-added services are in fulfilling this purpose remains unclear. This paper explores how value-added services can enhance e-commerce platform competitiveness, measured by both user scale and reputation, considering the effect of network externalities.

Design/methodology/approach

A bilateral e-commerce platform with potential high-quality sellers and low-quality sellers on one side and potential buyers on the other side was chosen as research setting. Game theory models are constructed to simultaneously consider the behaviors of all actors (including sellers, buyers and the platform).

Findings

On the one hand, to increase the seller scale, basic services play a substituting role in determining the effect of value-added services. On the other hand, to increase the buyer scale and improve platform reputation, basic services play a fundamental role in determining the effect of value-added services. Furthermore, the higher the loss rate of the product value, the bigger the room for providing value-added services. With increasing loss rate of the product value, participating buyers who are attracted by value-added services are the fastest growing indicators; this indicates that the most significant effect of value-added services is its increase in the buyer scale.

Practical implications

Basic services determine the lower limit of platform competitiveness, while value-added services set the upper limit. The results of this paper can instruct different types of platforms to enhance their competitiveness in different ways.

Originality/value

(1) While previous studies on how to enhance platform competitiveness only considered scale or reputation separately, this paper applies a new perspective of platform competitiveness, namely the improvement of both the seller scale/buyer scale and platform reputation. (2) According to the characteristics of bilateral platforms, game theory models are constructed to explore how value-added services can enhance platform competitiveness considering both positive and negative network externalities. (3) The existing literature studies basic services and value-added services in a fragmented state; this paper contributes to research on value-added services by considering the mutual effect between basic and value-added services.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 19 November 2018

Min Hui Chen

The purpose of this paper is to explore the value added of exports of services, which increasingly involve intermediate inputs to manufacturing and are indirectly embodied in…

Abstract

Purpose

The purpose of this paper is to explore the value added of exports of services, which increasingly involve intermediate inputs to manufacturing and are indirectly embodied in intermediate and finished good exports to the global market earned by Taiwan and South Korea.

Design/methodology/approach

This paper uses the World Input-Output Database to examine and compare the competitiveness of service industry between Taiwan and South Korea in China from 1995 to 2011. The author measures the value added of export in two ways: value added in trade (VAiT) and trade in value added (TiVA).

Findings

The proportion of domestic (intermediate and final demand) VAiT was created by Taiwanese and South Korean exports to China. The services amount share of value added embodied in Taiwanese electrical and optical equipment (ELE) exports to China increased gradually (38.0–45.7 percent) from 1996 to 2011, that was more than that of South Korea (26.7–23.3 percent). Taiwanese financial and business (F&B) service contributed to Taiwanese ELE production exported to China. In service sectors, the proportion of VAiT of Taiwanese F&B service embodied in ELE exports to China increased annually (9.8–11.5 percent), that was similar to that of South Korea (12.2–11.3 percent). Thus, F&B sector played an increasingly important role in service sectors. Taiwanese F&B promotes the ELE export to China with higher efficiency than South Korea does.

Originality/value

Over the past two decades, the development of information technology and the growth of international specialization and fragmentation of production processes have brought about a global value chains (GVCs) phenomenon in services, which has already been taking place in manufacturing for a long time. Intangible value added of services increasingly involved intermediate inputs from manufacturing and were indirectly embodied in intermediate and finished goods exported to the global market. The focus of this paper is to analyze how the service industry participates in the development of the GVC, with emphasis on the export of ELE production to China in the bilateral trade of Taiwan and Korea with China. In addition to the value-added components, the exports of F&B intermediate products to China have been increasing year by year, and Taiwanese is higher than South Korean. In the bilateral trade between Taiwan or Korea and China, for ELE production exported to China, double counted part of intermediate products is increasing year by year. In terms of the value added of the double counting of F&B exports to China, Taiwan is higher (PDC, 31.23–17.26 percent) than South Korea. (PDC, 8.7–15.12 percent). South Korea and China are not as closely related as Taiwan and China.

Details

Journal of Korea Trade, vol. 22 no. 4
Type: Research Article
ISSN: 1229-828X

Keywords

Article
Publication date: 17 August 2012

Huiying Du, Ge Zhu, Limin Zhao and Tingjie Lv

As the market competition becomes increasingly intensive and the profit from traditional voice services margins gradually decline, 3G telecom operators must provide various…

Abstract

Purpose

As the market competition becomes increasingly intensive and the profit from traditional voice services margins gradually decline, 3G telecom operators must provide various value‐added services to enhance the ARPU (average revenue per user). The purpose of this paper is to recognize the factors infecting the adoption of 3G value‐added services.

Design/methodology/approach

The TAM (technology acceptance model) was used as the foundation to further understand consumer's behavioral intention to use 3G value‐added services. Structural equation modelling (SEM) was used to develop a conceptual model of customer adoption and nine important factors were proposed. The authors conducted a questionnaire investigation, using a large sample, in the Chinese 3G value‐added service market. SPSS and AMOS were applied to analyze the survey data.

Findings

The empirical findings are: security and social influence are two of the most important factors in 3G market; 3G value‐added services must be perceived as enjoyment and useful; using context should be friendly and compatible; and in a whole view, the influence from gender, ease of use and need for unique to adoption intention is not significant, but to separate as two models, the difference is huge – the female group considers more about price and usefulness, while the male group thinks about enjoyment and compatibility.

Practical implications

The sample of this study is limited at the range of empirical data; the development of 3G technology has not yet been perfected in China and this study fails to include all of the 3G value‐added services, some of which are still in the exploratory phase of development. At the same time, the cities in this study cannot be said to represent the present stage of the whole of China.

Originality/value

The paper develops a conceptual structural equation model on the area of 3G value‐added services in China. The findings in the paper would help 3G providers to improve their services.

Details

Nankai Business Review International, vol. 3 no. 3
Type: Research Article
ISSN: 2040-8749

Keywords

Article
Publication date: 18 September 2019

Lise Muriel Botha and Naomi Wilkinson

The purpose of this study is to propose a framework for the evaluation of the perceived value internal audit functions add to their organisations. The framework is based on service

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Abstract

Purpose

The purpose of this study is to propose a framework for the evaluation of the perceived value internal audit functions add to their organisations. The framework is based on service quality measurement principles, specifically SERVPERF, which is applied to internal auditing.

Design/methodology/approach

Insights obtained from the literature on internal auditing and service quality disciplines were synthesised to identify and structure value-adding attributes of internal auditing. A thematic analysis of published profiles (by Protiviti) of various organisations’ internal audit functions were analysed and evaluated against those attributes identified in the literature to formulate an evaluation framework based on service quality measurement principles.

Findings

The identified value-adding attributes were categorised according to the dimensions of the SERVPERF service quality measurement instrument to formulate a framework for evaluation of the value added by internal audit functions. It was found that the SERVPERF dimensions appear to be relevant to internal auditing. The SERVPERF instrument was therefore adapted to evaluate the value added by internal auditing as a service.

Practical implications

This paper contributes to both the theory and practice of internal auditing by proposing formal dimensions of a value-adding internal audit service which can then serve as a reference point from which to evaluate the value added to an organisation. The framework can serve as a starting point for internal audit functions to develop their service offering and/or form the foundation of stakeholder satisfaction surveys.

Originality/value

The study contributes to the literature by applying service quality principles to internal auditing. A holistic framework that can be used for the evaluation of the value added by internal audit functions based on stakeholder perceptions is proposed. The framework juxtaposes attributes of value-adding internal auditing with recognised service quality performance measures. The notion of value added is investigated to better understand the concept in the context of internal auditing services.

Details

Meditari Accountancy Research, vol. 28 no. 3
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 22 April 2022

Lin Zhang, Yanqing Wang, Muhammad Adeel Anjum and Jingjing Mu

By distinguishing between core business service and value-added service in mobile payment applications, this paper aims to incorporate point mechanisms (point rewarding and point…

1191

Abstract

Purpose

By distinguishing between core business service and value-added service in mobile payment applications, this paper aims to incorporate point mechanisms (point rewarding and point exchanging) into these two separated roles of services to understand user loyalty formation. Specifically, this study aims to examine the mediating role of need satisfaction and perceived value in the relationships between point mechanisms and user loyalty.

Design/methodology/approach

Drawing upon self-determination theory and perceived value lens, this study develops a theoretical model that examines the mediation effects of multiple psychological outcomes on the relationships between point mechanisms (point rewarding and point exchanging) and user loyalty in the context of mobile payment. Data were collected from 731 users of a leading mobile payment application in China through an online survey. Structural equation modeling was used to analyze the hypothesized relationships.

Findings

Empirical results suggest that point rewarding enhances users’ need satisfaction of core service, whereas point exchanging increases users' perceived value of additional value-added service. Results also reveal that need satisfaction and perceived value mediate the relationships between point mechanisms (i.e. point rewarding and point exchanging) and user loyalty. In sum, the findings enhance our understanding of user loyalty formation from a dual channeling perspective.

Practical implications

This study informs the managers of mobile payment applications on how to build user loyalty by enhancing users' experience of core business service and value-added service through point mechanism implementation.

Originality/value

This study highlights the importance of both core business service and value-added service in mobile payment applications and provides new insights into the effects of point mechanisms on user loyalty by considering different service routes. Additionally, this study uncovers the mediation mechanisms of users' need satisfaction of core service and users' perceived value of additional value-added service on the two service routes, which further enrich our understanding regarding the user loyalty formation of mobile payment applications.

Article
Publication date: 1 May 1990

Peter N.C. Cooke

Motor manufacturers have begun to change theirway of thinking within their dealership networks;the new development of the provision ofassociated services by the…

Abstract

Motor manufacturers have begun to change their way of thinking within their dealership networks; the new development of the provision of associated services by the manufacturers themselves is described within the framework of value‐added strategies for the marketing function. Services in the automotive industry are listed and their costs and benefits analysed. The implications of a value‐added strategy are discussed.

Details

International Journal of Physical Distribution & Logistics Management, vol. 20 no. 5
Type: Research Article
ISSN: 0960-0035

Keywords

Open Access
Article
Publication date: 18 July 2023

Betrand Ewane Enongene

This study aims to examine the effect of structural transformation on poverty alleviation in Sub-Saharan Africa (SSA) countries with a higher share of services as a percentage of…

Abstract

Purpose

This study aims to examine the effect of structural transformation on poverty alleviation in Sub-Saharan Africa (SSA) countries with a higher share of services as a percentage of gross domestic product (GDP). The study specifically focuses on the value-added share as a percentage of GDP in the agricultural, manufacturing, industrial, and service sectors using time series data from 1988 to 2019.

Design/methodology/approach

The study utilizes the autoregressive distributive lag (ARDL) bound test framework for estimation, based on the conclusions drawn from the augmented Dickey-Fuller and Phillips–Perron unit root tests, which provide evidence of a mixed order of integration.

Findings

The result reveals that agriculture value-added (AVA), manufacturing value-added (MVA), industrial value-added (IVA), and services value-added (SVA) have a positive and significant impact on poverty alleviation in both the short and long run. However, the agriculture sector is found to be more effective in reducing poverty compared to the other sectors examined in this study. Additionally, this study challenges the notion that SSA countries have undergone an immature structural transformation. Instead, it reveals a pattern of stagnant structural transformation, as indicated by the lack of growth in the industrial and manufacturing value-added shares of GDP.

Practical implications

To enhance productivity and reduce poverty, SSA economies should adopt a development strategy that prioritizes heavy manufacturing and industrial sectors, leading to a transition from the agricultural to the secondary and tertiary sectors.

Originality/value

The study contributes to the emerging literature on structural transformation by investigating which sector is more efficient in reducing poverty in SSA countries, using the value-added share as a percentage of GDP for agricultural, manufacturing, industrial, and service sectors. The study also aims to determine if SSA countries have experienced immature structural transformation due to the growing share in the service sector.

Details

Journal of Business and Socio-economic Development, vol. 4 no. 4
Type: Research Article
ISSN: 2635-1374

Keywords

Article
Publication date: 14 June 2019

Deb Kusum Das, Suresh Chand Aggarwal, Abdul Azeez Erumban and Pilu Chandra Das

The dynamics of economic growth in India continues to engage economists and still remains much debated. The trends and patterns of growth observed in India have seen acceleration…

Abstract

Purpose

The dynamics of economic growth in India continues to engage economists and still remains much debated. The trends and patterns of growth observed in India have seen acceleration in growth in Indian economy in the period following macroeconomic reforms and policy changes in investment and trade regimes. However, when and how did India transform itself from Hindu rate of growth to the present growth regime continues to be debated.

Design/methodology/approach

Using INDIA KLEMS data set, this study provides a distinctive perspective on India’s economic growth. A unique data set comprising 27 sectors of Indian economy at a disaggregate industry level for a period of 30 years, beginning 1980s, attempts to understand the dynamics of India’s growth from the contribution of industries that comprise the Indian economy.

Findings

This productivity data set offers a new way of analyzing the dynamics of growth including the sources of growth. The growth empirics allow evaluation of the relative significance of total factor productivity growth vis-a-vis input accumulation in accounting for output growth. In addition, the authors were able to document the industry contributions to aggregate growth. In this way, they were able to analyze the importance of the constituent industries within the different sectors of the economy − agriculture, manufacturing, construction and market, as well as non-market services in accounting for the observed growth in India. In conclusion, the industry perspective offers a new and analytical way of discerning new aspects of India’s march to higher growth regimes in post-1990s era.

Originality/value

A unique data set comprising 27 sectors of Indian economy at a disaggregate industry level for a period of 30 years, beginning 1980s, attempts to understand the dynamics of India’s growth from the contribution of industries that comprise the Indian economy.

Details

Indian Growth and Development Review, vol. 13 no. 1
Type: Research Article
ISSN: 1753-8254

Keywords

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