The Effect of Producer Services upon Manufacturing Value Chain

Abstract

With more and more producer services participating in manufacturing activities, producer services gradually become indispensably value-adding nodes in manufacturing value chain. Compared with the traditional manufacturing value chain, the new one including producer services is based on the new business commerce and information technologies (IT), and its constituents are not limited to the interior activities of one firm any more, but come from many different kinds of firms. Due to the development and improvement of the new manufacturing value chain, it will become value net. Therefore, it is necessary to analyze the constituent elements of the new manufacturing value chain, which is the basis for further optimizing the manufacturing value chain. In this paper, we focus on analyzing producer services, their relationships with the manufacturing industry, and their effect on the manufacturing value chain.