Constructing Service Machines—Global Sourcing of Knowledge-intensive Services

  • Paul Lillrank
  • Olli Tolkki
Part of the Service Science: Research and Innovations in the Service Economy book series (SSRI)

Outsourcing highlights the need for explication and conceptualization of the relationship between the parties involved. Within the Service Sciences, Management and Engineering —framework service production systems can be studied as Service Machines. The machine —metaphor focuses research on the contractual constructions that link together various productive resources and capabilities and their evolution over contract generations. Essential attributes of the Service Machine are the tenacity of its incentive structure and the amount of friction created by transaction costs and administration.

This paper outlines a research project on the management of the sourcing of knowledge intensive services. The leading partner in the project will be Helsinki University of Technology, and the project will join together eight academic institutions in Finland, India, USA and Estonia.


Transaction Cost Service Machine Vendor Selection Knowledge Intensive Business Service Corporate Partner 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. [1]
    Williamson, Oliver E. The Economic Institutions of Capitalism - Firms, Markets, Relational Contracting. The Free Press, New York, 1985.Google Scholar
  2. [2]
    Birou, L. M., & Fawcett, S. E. (1993). International purchasing: Benefits, requirements, and challenges. International Journal of Purchasing & Materials Management, 29(2), 93.Google Scholar
  3. [3]
    Nellore, R., Chanaron, J. -., & Eric Soderquist, K. E. (2001). Lean supply and price-based global sourcing -the interconnection. European Journal of Purchasing and Supply Management, 7(2) 101-110.CrossRefGoogle Scholar
  4. [4]
    The Economist (2006), May 4th.Google Scholar
  5. [5]
    Trent, R. J., & Monczka, R. M. (2003). International purchasing and global sourcing —what are the differences? Journal of Supply Chain Management: A Global Review of Purchasing & Supply, 39(4), 26.Google Scholar
  6. [6]
    Trent, R. J., & Monczka, R. M. (2002). Pursuing competitive advantage through integrated global sourcing. Academy of Management Executive, 16(2).Google Scholar
  7. [7]
    Porter, M.E., (1990) The Competitive Advantage of Nations. The Free Press, New York.Google Scholar
  8. [8]
    OECD Economic Surveys - Finland (2004). OECD, Paris.Google Scholar
  9. [9]
    Nelson R.R. & Winter S.G. (1982) Evolutionary Theory of Economic Change, Harvard, University PressGoogle Scholar
  10. [10]
    Greaver M.F. (1999). Strategic Outsourcing, AMACOM, New York.Google Scholar

Copyright information

© Springer Science+Business Media, LLC 2008

Authors and Affiliations

  • Paul Lillrank
    • 1
  • Olli Tolkki
    • 1
  1. 1.Helsinki University of TechnologyFinland

Personalised recommendations