Advertisement

The Evolution of the Production Function: Transition to the “Value Creation Cube”

  • Moira Scerri
  • Renu Agarwal
Conference paper

Abstract

This chapter is theoretical in nature and follows the evolution of production in the context of developed nations. We begin with the physical nature of industrial economies of the past, move to the service- and knowledge-based economies of the present, and incorporate the emerging creative industries where human creativity forms the basis on which value is created. Paralleled to this is the contributions of academic scholars whose theories and models have provided understanding and meaning at each of these evolutionary stages. The chapter culminates with our contribution which recombines aspects of each of the models to form the Value Creation Cube framework. The Value Creation Cube framework represents the different perspectives of production, including the human elements of customers, suppliers, shareholders, employees and managers, whilst also provisioning for the technical components that enable the efficient communication and integration of each of the sub-components.

Keywords

Social Capital Cash Flow Service Process Intellectual Capital Free Cash Flow 
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.

References

  1. Agarwal R, Selen W (2005) The service cubicle: a new service taxonomy. In: Annual EurOAM conference, European Operations Management Society, Budapest, Hungary, 19–22 June 2005Google Scholar
  2. Agarwal R, Selen W (2009) Dynamic capability building in service value networks for achieving service innovation. Decis Sci 30(3):431–475CrossRefGoogle Scholar
  3. Agarwal R, Selen W (2011) Multi-dimensional nature of service innovation – operationalisation of elevated service offering construct in collaborative service organisations. Int J Prod Manage 31(3):21–38Google Scholar
  4. Australian Government (2007) Servicing our future. Treasury, Australian Government, CanberraGoogle Scholar
  5. Baker E, Onyx J, Edwards M (2011) Emergence, social capital and entrepreneurship: understanding networks from the inside. Emerg Complex Organ 13(3):21–38Google Scholar
  6. Campion M, Thayer PW (1987) Job design: approaches, outcomes and trade-offs. Organ Dyn 15(3):66–79CrossRefGoogle Scholar
  7. Creative Economy Report (2008) United Nations, Geneva, SwitzerlandGoogle Scholar
  8. Csikszentmihaly M (1996) Creativity: the work and lives of 91 eminent people. Harper Collins, New YorkGoogle Scholar
  9. Csikszentmihaly M (2002) Flow: the classic work on how to achieve happiness, Rider, LondonGoogle Scholar
  10. Csikszentmihaly M (2008) Creativity, fulfillment and flow, TED website. http://www.youtube.com/watch?v=fXIeFJCqsPs Viewed 05 June 2011
  11. Dewett T (2004) Employee creativity and the role of risk. Eur J Innov Manage 7(4):257–266CrossRefGoogle Scholar
  12. Fischer F, Sirianni C (eds) (1994) Case studies in organisation and bureaucracy. Temple University Press, PhiladelphiaGoogle Scholar
  13. Fitzsimmons JA, Fitzsimmons MJ (2006) Service management: operations, strategy, and information technology, 5th edn. Irwin/McGraw-Hill, New YorkGoogle Scholar
  14. Frei F (2006) Customer-introduced variability in service operations. Harv Bus Sch 9:1–18, Note 606-063Google Scholar
  15. Goldratt E (1992) The goal. North River Press, Great BarringtonGoogle Scholar
  16. Greve H (2003) Organizational learning from performance feedback: a behavioural perspective on innovation and change. Cambridge University Press, CambridgeCrossRefGoogle Scholar
  17. Kaplan R, Norton D (1992) The balanced scorecard – measures that drive performance. Harv Bus Rev pp 71–79Google Scholar
  18. Kastelle T, Steen J (2010) Using network analysis to understand Innovation. Innov Manag Policy and Pract 12(1):2–4Google Scholar
  19. Latour B (2005) Re-assembling the social. Oxford University Press, New YorkGoogle Scholar
  20. Muller J (2011) Thinking about capitalism: Lecture 22 – Schumpeter on innovation and resentment. Catholic University of America, New York. http://www.youtube.com/watch?v=oeCpDIiR150. Viewed 9 Dec 2011
  21. Nakamura J, Csikszentmihaly M (2002) The concept of flow. In: Snyder CR, Lopez SJ (eds) Handbook of positive psychology. Oxford University Press, Oxford/New York, pp 89–105Google Scholar
  22. Ng ICL (2008) The pricing and revenue management of services. Routledge, LondonGoogle Scholar
  23. Onyx J, Bullen P (2000) Sources of social capital, Soc Cap Public Policy Austr 17(3):105–135Google Scholar
  24. Onyx J, Edwards M, Bullen P (2007) The intersection of social capital and power: an application to rural communities. Rural Soc 17(3):215–230CrossRefGoogle Scholar
  25. Pfeffer J, Sutton RI (2000) The knowing-doing gap. Harvard Business School Press, BostonGoogle Scholar
  26. Potts J (2009) Why creative industries matter to economic evolution. Econ Innov New Technol 18(7):663–673CrossRefGoogle Scholar
  27. Putman R (1993) Making democracy work: civic traditions in modern Italy. Princeton University Press, PrincetonGoogle Scholar
  28. Rapport A (1986) Creating shareholder value, 2nd edn. The Free Press, New YorkGoogle Scholar
  29. Rogers E (1962) Diffusion of innovation. Free Press, GlencoeGoogle Scholar
  30. Sampson S (2012) Visualizing service operations. J Serv Res 15(2):182–198Google Scholar
  31. Sampson S, Froehle C (2006) Foundations and implications of a proposed unified services theory. Prod Oper Manage 15(2):329–343CrossRefGoogle Scholar
  32. Scerri M, Agarwal R (2011) Redefining productivity through inter-firm operations and supply chains. Paper presented to the 9th ANZAM operations and supply chains and service management, Geelong, 15–17 June 2011Google Scholar
  33. Schmenner R (1986) How can service businesses survive and prosper? Sloan Manage Rev 27(3):12–32Google Scholar
  34. Schmenner R (1994) Service firm location decisions – some mid western evidence. Int J Serv Ind Manage 5(3):35–56CrossRefGoogle Scholar
  35. Schmenner R (2004) Service businesses and productivity. Decis Sci 35(3):333–347CrossRefGoogle Scholar
  36. Schumpeter J (1942) Capitalism, socialism and democracy. Harper & Row, New YorkGoogle Scholar
  37. Scitovsky T (1943) A note on profit maximisation and its implications. Rev Econ Stud 11(1):57–60CrossRefGoogle Scholar
  38. Smith D (2006) Exploring innovation. McGraw Hill, BerkshireGoogle Scholar
  39. Spoher J, Maglio PP (2008) The Emergence of Service Science: Towards Systematic Service Innovation, IBM Research Centre, San Jose, CAGoogle Scholar
  40. Stam C (2007) Knowledge productivity designing and testing a method to diagnose knowledge productivity and plan for enhancement. Universiteit Twente, EnschedeGoogle Scholar
  41. Taylor F (1911) The principles of scientific management, Harper & Brothers, New YorkGoogle Scholar
  42. Ter Wal A, Boschma R (2009) Applying social network analysis in economic geography: framing some key analytic issues. Ann Reg Sci 43(3):739–756CrossRefGoogle Scholar
  43. Toffler A (1981) Third wave. Bantam Books, New YorkGoogle Scholar
  44. Vargo SL, Lusch RF (2004) Evolving to a new dominant logic for marketing. J Mark 68:1–17CrossRefGoogle Scholar
  45. Vargo SL, Lusch RF (2008) From goods to service(s): divergences and convergences of logics. Ind Mark Manag pp 1–6CrossRefGoogle Scholar

Copyright information

© Springer India 2013

Authors and Affiliations

  1. 1.Management Discipline Group, UTS Business SchoolUniversity of Technology SydneySydneyAustralia

Personalised recommendations