Content and measurement of productivity in the service sector

Abstract

The purpose of this article is to elucidate the concept and measurement of productivity in the service sector. The concept of service productivity is divided into quantity and quality dimensions, and further into output and input elements. Moreover, the issue of measurement is analysed to show the problems related to the elaborated concept of productivity. The content and measurement of the dimensions of service productivity are illustrated through a case study focusing on the second largest insurance group in Finland. The various elements of quantity and quality dimensions were distinguished in the target firm, but especially the quality elements seem to require more serious attention in the future. The article ends with a plea for more interdisciplinary research between scholars on service productivity.