Managing Service Organizations: Does Having a “Thing” Make a Difference?

Abstract

The authors conducted an extensive review of literature to see if there was evidence indicating there are differences in the management of services and manufacturing organizations. The literature identified differences that related to measurements used to assess effectiveness and efficiency, differences in production strategies and differences in production processes between organizations producing tangible goods and those producing intangible services. The results of the review indicate that there are a number of important and defendable differences between managing a manufacturing firm and a service. The authors also provide tables summarizing the differences and provide research implication for each difference. The review serves as a foundation for future academic efforts to better understand the unique challenges of managing organizations in the services sector.