Global business services Increasing specialization and integration of the world economy as drivers of economic growth

Business services, service economy, outsourcing, off-shoring, non-ownership,rental-access-paradigm, property rights theory, resource-based view, entrepreneurial theoryof the firm.

Abstract

Purpose – The purpose of this paper is to explore the contribution of global business services to improved productivity and economic growth of the world economy, which has gone largely unnoticed in service research

Design/Methodology/Approach – The authors draw on macroeconomic data and industry reports, and link them to the non-ownership-concept in service research and theories of the firm.

Findings – Business services explain a large share of the growth of the global service economy. The fast growth of business services coincides with shifts from domestic production towards global outsourcing of services. A new wave of global business services are traded across borders and have emerged as important drivers of growth in the world’s service sector.

Research Limitations and Implications – This paper advances the understanding of nonownership services in an increasingly global and specialized post-industrial economy. The paper makes a conceptual contribution supported by descriptive data, but without empirical testing.

Originality/Value – The authors integrate the non-ownership concept and three related economic theories of the firm to explain the role of global business services in driving business performance and the international transformation of service economies.