Competitiveness of Knowledge Intensive Services

Abstract This paper examines three theoretical models that are used for describing competitiveness of a firm. All models are evaluated against the characteristics of knowledge intensive services (KIS). Such services refer to processes or projects that are using knowledge as an input to produce services or tangible goods that are complemented to services. This paper is based on a literature review of three theories that describe models of competitive advantage in contemporary business. The setting of the paper takes (1) classical approach, i.e. value chain analysis, (2) contemporary approach, i.e. resource- and knowledge-based views of a firm, and (3) emerging approach, i.e. complex adaptive system, under examination. All models considered above explain some basic perspectives of competitiveness but they also include some gaps that appear in the context of knowledge intensive organisations. It is essential to combine those theories and recognise which characteristics are valid and important when improving competitiveness. The main questions to be answered in this paper are: How are knowledge intensive services defined? What are the basic ideas of competitiveness models? How do the models explain and describe competitiveness of a service firm? The final outcome of the paper is a proposal concerning elements to take into account when building competitiveness model for knowledge intensive service firms.

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