The Service Economy: Standardisation or Customisation?

Abstract

Service firms are squeezed between customisation and standardisation (the latter emphasises productivity in accordance with neo-classic economic theory). This presents a dilemma to service firms and to economic theory. The theoretical logics of both are discussed and a third theory, based on modulisation, is presented. The article investigates the issue of towards which of the three logics the service sector is developing. This is measured via two surveys carried out in Denmark. The results of the surveys say that the development is towards that of customisation with some minor tendencies towards modulisation. These results are discussed thoroughly.

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