Today service activities provide a significant share of the revenues for many traditional manufacturing and technology companies, and at the same time new innovative service firms are established. For this reason, decision makers need to place emphasis on service-oriented development and service innovations as well as knowledge transfer and the sharing of service business-related capabilities to increase the competitiveness. Effective service business knowledge creation and its transfer among local, national and international players are crucial in current global competition. More understanding on the processes and dynamics of knowledge transfer in service business development are needed to develop further regional and national policies and furthermore the capabilities of the Finnish service sector. In light of these late developments in service sector, this study identified and analysed the different knowledge transfer mechanisms available for service firms regionally and nationally. This study concentrates on the activities of intermediary organizations, which by definition work between other organizations and try to transform and moderate knowledge for a wider audience. The evidence to answer our research questions were gathered via two research phases: (1) interviews in public knowledge intermediaries, (2) survey to users of two intermediaries and six knowledge transfer case studies. However, before data collection we carried out a literature review on service knowledge transfer. Theory highlighted the importance of tacit knowledge in service business, especially, the transformation of tacit knowledge to explicit knowledge. Nevertheless, it is agreed that this is possible only a certain extent. It was also stressed that social relations play an important role in the transfer, and knowledge transfer is largely learning from the individuals working on the service. The first research phase aimed at identifying and categorizing knowledge transfer mechanisms. Based on the interviews in fifteen intermediary organizations and their clients in two regions, we identified and constructed six categories of service capability knowledge transfer mechanisms. These categories are Media; Training; Project cooperation; Communities; Partnerships, and Infrastructures and Resources. In addition to the grouping, the identified mechanisms were divided into knowledge creation model (SECI model), which revealed that majority of mechanisms concentrate on externalizing and combining knowledge but less means are found to internalize or socialize knowledge. In the second phase of the study, six service knowledge transfer mechanisms were selected for a closer analysis to gain more detailed information on their functioning and effectiveness. Based on the analysis, a successful transfer mechanism takes client expectations into account, is personalized and places emphasis on the type of knowledge it aims to transfer. Moreover, building a trustworthy transfer environment is clearly a positive aspect of successful knowledge diffusion. However, the results also indicate that internalization of knowledge in target organization as well as service resource and infrastructure development are often neglected. Finally, this study created a model which stresses the roles of key stakeholders in service development process, i.e. customer or end-user, and the role of intermediaries in transferring service business knowledge. This model shows that end-user involvement gradually increases as service (innovation) development matures towards service implementation (commercialization). However, knowledge transfer activities that intermediaries and policy makers implement, becomes more costly as service development moves towards service implementation. This is due to the fact that more context specific knowledge is needed at the end of process, which by contrast means that extra resources are required to reach service firms. When designing knowledge transfer activities and policies targeted to service development, different phases of service development process, the level of end-user engagement and contextualization of knowledge as well as related costs of knowledge transfer should be considered. As practical tips for creating service business we offer stepwise approach from awareness raising to more specific knowledge transfer. Design of both open and closed mechanisms is important. The latter are better for trust building and goal-oriented development but might not create ‘radical’ information or knowledge due to knowledge stickiness. Creation of regional facilities and forums with public subvention for firms to raise the awareness, co-create, design, test and productize their service activities would enhance learning between firms and 7 service business experts and the creation of service innovations. Support activities should also consider “ensuring“ the internalization of knowledge in knowledge transfer and ensure that top management and relevant staff members are committed to development activities in the organization.
The role of knowledge in value creation will be highlighted in the Finnish economy in the future when the share of service business grows larger compared with manufacturing and agriculture
The share of private services in Finnish GDP is almost 50 percent, of which real estate and business services, logistics and storage and ICT services, as well as wholesale and retail forms the main service sectors
Effective service business knowledge creation and its transfer among local, national and international players are crucial in current global competition. More knowledge on the processes and dynamics of knowledge transfer in service business development are needed to develop further regional and national policies and furthermore the capabilities of the Finnish service sector.
knowledge-intensive businesses services (KIBS)
The growing body of service-focused research has made it clear that services have come to dominate economic activity by businesses across most industries. In other words, we need to understand what drives and renews the development of service business done by firms in both the service and manufacturing industries. In this report, we refer to “service business” as an organization’s activity aimed at selling services (i.e. service offerings) directly to customers. These customers may be end-users (consumers) or other firms and organizations as part of a larger value chain.
“As services are promises of processes to be carried out, their quality can’t be confirmed at the point of purchase. Pricing can’t be based on the exchange of goods, but can be based on various proofs of service, such as time and resource consumption, access to a facility, or the change of a state of affairs.
An intangible service can’t be returned, spent resources can’t be recovered, services have no scrap value, and there is no aftermarket for second-hand services
As per industry and society, services consist of three basic components: the service concept, service process and service system. The service concept includes the basic idea of the service, as well as its basic content and structure. The service process describes the chain of activities to be carried out, as well the roles of the provider and the client. Finally, the service system constitutes the resources required, including sub-components such as the company’s staff, the physical/technical environment and the organizational structure.
