Value Constellation Construction in Service Firms

Abstract

The aims of this study were to identify how governmental technology development program (TDP) improves the service value in service firms and to investigate how service firms construct value constellations through relationships with other firms. A multiple cases study research is conducted, focusing on the companies with outstanding performance which participating 2013 Commercial Service Value Enhancement Plan hosted by the Ministry of Economic Affairs of Taiwan. The research main findings are: (1) ICTs enhance service value through six key factors: data envelopment analysis for customers; creating switching costs for industry entry barriers; integrating resources among the value constellation members and elevating productivity; improving internal and external communication for the organization; organizing activities, quick responses to customer needs and strengthening customer relationships; and identifying new members for the value constellation. (2) We categorised the service value enhancement of TDP firms into three types: internal operation improvements, industrial network enhancements; and transactional relations. Internal operation improvements primarily involved creating value within a TDP firm.