A critical analysis of the product-service dichotomy in operations management

Abstract

Many theories and concepts that were initially developed for manufacturing operations have also been applied to operations and processes that are primarily meant for the rendering of services. Despite this evident interchangeability with regards to products and services, basic differentiating factors between them still remain in the literature. This paper proposes that the product-service dichotomy is not only of little relevance, but that it is also potentially detrimental to the strategic formulation and the decision-making process of operations. Additionally, it proposes a new attribute classification for value packages,1 taking into consideration the attributes underlying the differentiating factors highlighted in the literature. Copyright © by The Haworth Press, Inc. All rights reserved.