chapter  3
37 Pages

Product-services and competitiveness

ByArnold Tukker, Christiaan van den Berg

Product-services are usually put on the market by a network of firms, and require application of more complicated revenue models than product sales. The product-service offered should fit better with the opportunities in the market than a competing product offer. This is often the case since product-services can be better tailored and customised to client needs. A theory with explanatory and predictive power is hence lacking. Even worse, though product-services basically form a specific business value proposition, the product-service community has largely neglected theories and case studies from the field of business management research. The resource-based view of the firm points to resources as the main source of competitive advantage. Closely related to the resource-based view is the strategy school that propagates learning as a main source of competitive advantage. Highly relevant for analysing the competitiveness of business systems is the basic view one has on economic development.