A Cross-Sectional Study of Business Service Profitability Some Implications for Strategy

Timothy L. Wilson

Abstract


A cross-sectional study has been made of the Business Service Sector in the U.S.  Relative market share, revenue/employee, and perhaps investment were found to be contributors to pre­tax profitability in this sector. Consequently, strategies directed toward optimizing revenue/employee, growth, and investment may be effective in determining firm performance. The opportunities provided to small business in this sector, the importance of this sector in the economy, and the importance of strategy to small businesses would appear to make the study of interest to small business managers.


Full Text:

PDF

References


Albrecht, K. & Zempke, R. (1985). Service America. New York: Wiley.

Armstrong,J. & Collopy, F. (1994). The profitability of winning. Chief Executive, 95, 60-64. Buzzell, R. D. Product quality. Pimsletter, No. 4. Also reprinted in Keri n, R.A. & Robert A. Peterson, R.A. (1983). Perspectives on Strategic Marketing Management, 2nd ed. (278-293) Boston, MA: Allyn and Bacon.

Buzzell, R. D., Gale, B. T., & Sultan, R.G.M. (1975). Market share - a key to profitability. Harvard Business Review, 75-1, 97-1 06.

Buzzell, R.D. & Gale, B.T. (1987). The PIMS Principles: linking Strategy to Performance. New York: Free Press.

Cook, R.A. & Woverton, J.B. ( 1995). A scorecard for small business performance. Journal of Small Business Strategy, 6-2, 1 -18.

Christ man, J.J. & Danford G.W. (1995). Strategy as a determinant of the perceived value of outsider assistance to new ventures: An exploratory study. Journal of Small Business Strategy, 6-2, 47-68. '

Cravens, D.W., Holland, C.W., Lamb, C.W., Jr., & Moncrief, W.C., III (1988). Marketing's role in product and service qual ity. Industrial Marketing Management, 17, 285-304.

Czepie l, J.A. (1992). Competitive Marketing Strategy. (258-263) Englewood Cliffs, NJ: Prentice-Hall.

Dawes, P.L., Dowling, G.R., & Paterson, P.G. (1992). Criteria used to select management consultants. Industrial Marketing Management, 21 , 187-194.

Day, E. & Barksdale, H.C., Jr. (1992). How firms select professional services. Industrial Marketing Management, 21, 85-92.

Day, G.S. (1975). A strategic perspective on prod uct planning. Journal of Contemporary Business, 1-34.

Gronroos, C. (1990). Service Management and Marketing: Managing the Moments of Truth in Service Competition. Lexington, MA: Lexington Books.

Gronroos, C. (1983). Innovative marketing strategies and organization structures for service firms. Emerging Perspectives on Services Marketing, Berry, L.L., Shostack G.L., & Upah, G.D. eds. Chicago, IL: American Marketing Association. 9-21 .

Haas, R.W. (1995). Business Marketing, 6th ed .(317-31 9) Cincinnati, OH: Southwestern.

Hall, M.C. & Rao, C.P. (1994). The i mpact of buyer-seller relationships on organizational purchasing. The Journal of Marketing Management, 4-1, 1-10.

Harvey, M.G. & Ru pert, J.P. (1988). Selecting an ind ustrial advertising agency. Industrial Marketing Management, 17-2, 1 19-128.

Heskett,J.L.(1987). Lessons in the service sector. Harvard Business Review, 87-2, 118-126. Holmlund, M. & Kock, S. (1995). Buyer perceived service quality in ind ustrial networks. Industrial Marketing Management, 24-2, 109-121.

Jackson, R.W., Neidell, L.A., & Lunsford, D.A. (1995). An empirical investigation of the differences in goods and services as perceived by organizational buyers. Industrial Marketing Management, 24-2, 99-108.

Jelinek, M. (I 979). Instutionalizing innovation: A Study of Organizational Learning Systems. New York: Praeger Publishers.

Johnston, W.J. & Lewin, J.E. (1996). Organizational buying behavior: Toward an integrative framework. Journal of Business Research, 35-1, 1-15.

Kotler, P. (1994). Marketing Management, 8th ed. Englewood Cliffs, NJ: Prentice Hall. Lovelock, C.(1992). Managing Services. Englewood Cliffs, NJ: Prentice-Hall.

McLaughl in,C.P. & Coffey, S. ( 1990). Measuring productivity in services. Journal of Service Industry Management, 1-1.

Normann, R. ( 1989). Service Management: Strategy and leadership in Service Businesses. New York: John Wiley.

Porter, M.E. (1980). Competitive Strategy. New York: Free Press. Peters, T.J. (1988). Thriving on Chaos. New York: Alfred A. Knopf. Quinn, J. (1992). Intelligent Enterprises. New York: Free Press.

RMA Annual Statement Studies 1993 (1993). Philadelphia, PA: Robert Morris Associates. Schoeffler, S., Buzzell, R.D., & Heaney D.F. (1974). Impact of strategic planning on profit performance. Harvard Business Review, 74-2, 137-145.

Shostack, G.L. ( 1 977). Break i ng free from product marketing. Journal of Marketing, 41 , 73- 80.

U. S. Department of Commerce - Bureau of the Census (1982, 1 987, 1 992). Census of Service Industries -- Geographic Area Series. Washington, DC: Government Printing Office.

U. S. Department of Commerce - Bureau of the Census ( 1994). Statistical Abstract of the United States 1994. Washington, DC: Government Printing Office.

Wensley, R. (1981 ). Strategic marketing: betas, boxes, or basics. Journal of Marketing, 45-2, 173-182.

Whei ler, K. (1987). Referrals between professional service providers. Industrial Marketing Management, 16-3, 191-200.

Wilson, D.T. (1995). An integrated model of buyer-seller relationships. Journal of the Academy of Marketing Science, 23-4, 335-345.

Wilson, T.L. & Smith, F.E. ( 1996). Business services 1982-1 992: Growth, industry characteristics, financial performance. Industrial Marketing Management, 25-2, 163- 171.

Woodside, A.G., Wilson, E.J., & Milner, P. (1992). Buying and marketing CPA services. Industrial Marketing Management, 21-4, 265-272.


Refbacks

  • There are currently no refbacks.


sbi-web_120