Knowledge-based value creation: grasping the intangibility of service operations in Finland
by Harri Laihonen, Antti Lonnqvist
International Journal of Knowledge-Based Development (IJKBD), Vol. 1, No. 4, 2010

Abstract: This study aims to provide insights on the mechanisms of knowledge-based value creation in the context of a modern service economy. A particular focus of this paper is the concept of intangibility and its role in service operations. Intangibility is a key characteristic of services. However, a lack of in-depth understanding of the issue persists. This paper explores the intangibility of services through the concepts and models developed by the intellectual capital research stream. The aim is to construct a framework to account for intangibility as a characteristic of service, using a literature review and case studies in ten Finnish organisations. As a result, this article provides new knowledge about the service provider's and customer's intangible resources, intangible output elements and the transformation of intangible resources into other resources and, finally, into customer value.

Online publication date: Thu, 13-Jan-2011

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