Globalization of Services: Some Implications for Theory and Practice

Globalization of Services: Some Implications for Theory and Practice

Globalization of Services: Some Implications for Theory and Practice

Globalization of Services: Some Implications for Theory and Practice

Synopsis

In an era of accelerating change in the world economy, services are assuming greater importance for the economies of both developed and developing countries. As technological developments allow increasing tradeability of services, huge global firms are offering services across national boundaries. This important book explores the global impact of this economic phenomenon from both empirical and theoretical perspectives.

Excerpt

This book is published at the dawn of the twenty-first century. We have moved to a new millennium after gigantic and breathtaking technological advances made in the last century. It is often proposed that the pace, magnitude and direction of change will continue to accelerate in the global economy. Managers will have to cope with the rapid pace of changes by mobilizing human capital and increasing their adaptive capabilities. They will have to exploit and protect knowledge, facilitate its creation and mainly nurture systems to transfer this knowledge expeditiously within the organization. a major source of competitive advantage might be the reputation of the firm rather than any physical resources available to it. Moreover, the firm, rather than the country, would become the focus of attention of researchers attempting to understand the world economy.

In the world of the dawn of the twenty-first century, factors of production (with the possible exception of labour) are mobile across national borders. This mobility is facilitated by the interconnectedness of the world through a network of computers, high-speed telecommunications, fax, and other means. in an increasingly dynamic competitive global environment it has become almost impossible for any one firm to develop all the skills needed for effective competitive battle. Firms have become increasingly involved in strategic alliances and co-operative joint ventures. the nature of relationship among firms becomes at least as important as the organization of each one of them.

One manifestation of the changing nature of the global economy is the vast increase in the role of services as a per cent of gnp in both developed and developing economies. Between 1980 and 1997 the share of the services in gross domestic product has declined in only twenty-one out of more than 120 countries (World Bank 1999a). in all low income countries this share grew from 38 to 42 per cent; in middle income countries from 40 to 50. As to the developed countries, in the usa, this share grew from 58.3 per cent in 1960 to 64 per cent in 1980 and 71 per cent in 1997. in the Netherlands, the growth was from 60 per cent in 1980 to 70 per cent in 1997. Corresponding figures for the uk were 64 per cent to 71 per cent (World Bank 1999b).

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.