Value creation in outsourced service provision in public transportation
Artikel i vetenskaplig tidskrift, 2009
Purpose – The purpose of this paper is to identify and describe the perceived value drivers (benefits and
sacrifices) in outsourced service provision in public transportation. The authors focus on the suppliers’
perception of value creation for customers and value creation in a business-to-business relationship.
Design/methodology/approach – In-depth interviews are conducted with 26 managers and
employees participating in a business-to-business relationship concerning what create value following
the critical incident technique.
Findings – The results show that perceived benefits and sacrifices are related to the product, the
service and the relationship. In addition, there are certain prerequisites in the public transportation
system that inhibit value creation, and much value is destroyed in the business relationships before it
reaches the passengers.
Research limitations/implications – This paper reveals a need to find new quality strategies for
the improvement and assurance of value creation in outsourced service provision. The value drivers
identified originate from the suppliers’ view.
Practical implications – Managers should acquire knowledge regarding the value they create or
destroy, both within their organisation and in their business network, and thus ultimately for their
customers. Moreover, drivers that destroy value should be identified, measured, analysed, and managed.
Originality/value – The paper contributes to a better understanding of the difficulties in creating
value when service provision has been outsourced.
Keywords Value analysis, Outsourcing, Transportation, Quality management
Paper type Research paper